Dutch Department Stores Hema, Bijenkorf and V&D Are Facing Stiff Competition

The big Dutch department stores are under pressure. Hema, De Bijenkorf and V&D are facing stiff competition from the Bol.com/Albert Heijn cooperation. Ahold (the holding company of Albert Heijn) bought online retailer Bol.com for 350 million Euro.

The purchase was a smart move. Bol.com had a turnover of 355 million Euro in 2011. It offers a range of products, such as books, electronics and toys. Bol.com is considered to be one of the most visited retail website in the Netherlands and boasted of having 3.4 million active customers. It recorded sales of more than 17 million items during 2011.

As it looks now, only 2 retail stores will be around in another 20 years, only 2 will survive. Hema looks to be the leader of the pack since has a strong online presence. It is currently the fifth largest internet shop in the Netherlands. V&D is trying to catch up, while De Bijenkorf concentrates on enticing customers to make substantial purchases in their shops. 

The department stores can survive by position themselves cleverly. Ahold has introduce a three-prong approach:

1. In store
2. Online
3. Collection points

Furthermore, they must integrate both online and shop floor. This is easier said than done, as this is also quite expensive. A good example of such a successful integration is the English brand Burberry.

The biggest challenge that the department stores are facing is managing costs. They also need to listen to their customers, and leverage collected data. 

It will be interesting to see how it will all pan out in the coming years.

Promoted Posts on Facebook

Facebook allows you to promote your posts. To choose the best option for your business page, it’s important to understand how it works.

1. Understanding EdgeRank

EdgeRank was a term that Facebook used in the past. Nowadays, the company does not have a product or system called EdgeRank.

The Facebook news feed algorithm takes many factors into account when determining what to show.

These factors include:

1. How often do two people interact

2. How many people have liked a post

3. How many people commented on a post

4. How many people shared a certain story

5. What type of content is being shown

According to Facebook, posts are often seen by as little as 16% of fans. 

2. How your post can be seen by more people

It is smart to plan, create, and post Facebook posts that lots of people will like, comment on, and share. This will save you the trouble of buying Promoted Posts.

3. Using Promoted Posts

Promoted Posts allows business page administrators to reach more people (and potential customers) on Facebook. Many small and local businesses use Promoted Posts since it is easier to create quality content. It saves them the trouble of dealing with the complexities of a Facebook ad campaign.

Once a page administrator clicks on the Promote button underneath a post, a drop-down menu will show an estimation of reach based on monetary increments of $5. 

4. Measuring posts that get the most traction

Facebook offers a tool to learn which of your posts resonate most with your target audience – it’s called Page Insights. It allows you to find out if posts that include a photo or a question are more effective. Once you promote a post, you can click on the Promote button again to see how many actions, such as page post likes, page likes, or link shares were a result of the promotion.

5. Best practices for choosing posts to promote

Page administrators can also use Insights to check which posts are getting the most engagement. This enables them to optimize posts.

Some ideas of optimizing posts include using photos, videos of new products, special offers, special events (such as specials or upcoming in-store promotions), news, and surveys (targeted questions to get feedback).

Success!

From Fruit to Brand – the Cuties Story

It all started with Berne Evans, a former stockbroker. He had already experience with growing tomatoes, kiwis and oranges in California.

When the frost period in 1990 destroyed the orange harvest in California, he found out that supermarkets at the East Coast were desperately looking for mandarin oranges. He saw a huge business opportunity and asked his son to find mandarins that could withstand climate changes.

The identified the Citrus Reticulata Blanco as the perfect candidate. Small, seedless and easy to peel, the mandarin was the perfect candidate. Father and son Evans wanted to build a strong brand. They struck a deal with the Resnick family that built its fortune with Pom fruit juices.

According to the agreement, the Resnicks would take care of marketing and the Evans family would concentrate on production and distribution. Both would be the owners of the brand “Cuties”.
Cuties conquered the US since they were so child-friendly. Children just love Cuties, to the delight of their parents. The demand is not any more for mandarins (or tangerines), but for Cuties. The brand name has evolved to a sort name, similar to aspirin and hoover.

Recent sales accumulated to 75 million carton boxes, which is three times as much as 7 years ago! Strong marketing played for sure a major part, including five different short spots. One of them is 'Know why Cuties are small? Because kids have small hands.'  Another one: 'Know why Cuties are seedless? Because kids hate seeds.'

Cuties are currently dominating the US market, despite some ankle biters.

The technical bee issue seems also to be solved. To avoid bees bringing pollen from mandarins with seeds, a new variety was developed by a Californian University that does the trick. 

But is it not all wonderful. Evans balks at the marketing expenses and the Resnicks are annoyed that Evans started to launch a new brand 'Baby Cuties'.

No matter, Cuties wrote marketing history!

All About Benchmarking

Benchmarking is a great method to compare business processes or results with similar data from similar organizations or companies in the same industry.

Data that are compared normally include quality, time and costs. It is important to compare these data with those of companies of the same size that have a similar customer base. Benchmarking also helps to get insight into how to be better, faster and more cost-effective.

Benchmarking is part of strategic management. Various aspects are being evaluated and compared to those of peer organizations. This enables better insight into how to improve. Although benchmarking can be a one-time effort, is more and more used on an ungoing basis.

There are several kinds of benchmarking, including:

• Process benchmarking, which is focusing on organizational processes in order to identify the advantages and strong points of other organizations. Activities are analyzed with the focus on reducing costs and increasing efficiency.

• IR Benchmarking, which entails that investors compare financial results and look at opportunities and alternatives.

• Product benchmarking, which focuses on possible development of new products and services or upgrading existing ones by looking at competing offerings.

• Strategic benchmarking, which looks at the strategic management of other organizations.

There are various ways to benchmark. As a company, you can decide to conduct the benchmarking in-house. In many cases, it might be worth while to approach am agency with experience in benchmarking similar companies in your industry.

(Image: Olympics 1896)

How Ally Stevenson’s Clean Heels Became a Summer 2012 Marketing Success

It’s often a simple solution to an annoying problem that becomes a commercial success. Women wearing high heels know the sinking feeling you get when walking or standing on wet grass. Stilettos are easily ruined and having them repaired is expensive.

Ally Stevenson was also fed up that her shoes were ruined at rainy outdoor events. She came up with a simple and elegant solution: Heel Stoppers. The wearer only needs to slip the stoppers onto the end of the stiletto. 

Clean Heels was founded in 2009 and got a marketing boost from bad weather. Dubbed “the wettest drought on record”, the year 2012 started with months of hotter than normal temperatures, followed by lots of rain. Protecting high-heeled shoes at outdoor events (weddings, races, etc.) became important. Nobody wanted their shoes sinking in mud or wet grass during the event. Clean Heels was able to double its 2011 sales. 

The Fareham, Hampshire-based company was able to generate some nice PR. Heel Stoppers were featured in a number of high-profile magazines, including Vogue. Actress Jennifer Love Hewitt was wearing stilettos with Heel Stoppers in the movie The Lost Valentine. Heel Stoppers also appeared on ITV show Day Break and the UK soap opera Hollyoaks.

Clean Heels is for sure a company worth watching!

Better Place Should Be in a Better Place – Will The Company Succeed?

Better Place provides electric cars with switchable batteries, and has been trying to make its mark for the last four years. Such a car is expensive and Better Place's electricity subscription plans reflect only a 20% discount to gasoline prices for similar mileage.

Local fleet operators worry that the Renault (RNO:EN)-made vehicles that Better Place provides will quickly lose their value and buyers will see the required electricity purchases as too expensive. Rental agencies are balking because of uncertainty regarding the cars' resale value. Vehicles with switchable batteries might lose as much as 70% of their original value in four years instead of the typical 40% loss by gasoline-powered vehicles over the same period.

Better Place has service stations that a driver can pull into, and a fully automated machine shuttle will remove the heavy battery pack and install a fully charged new one. It also has recharging spots—a plug and meter—at the stations and elsewhere for a slow recharge. Drivers must subscribe to this service.

Better Place said that it raised $200 million to fund the infrastructure for a rollout in Western Europe. The round reflects a company valuation of $2.25 billion and brings the total amount raised from venture investors to $750 million.

However, critics say that electric-car owners should be able to fuel their cars from their own home rather than Better Place's grid. They also do not like the huge icons on their cars.

No matter what, Better Place is for sure a company worth being watched closely!

Marks and Spencer’s copycat case – honest mistake or huge marketing blunder?

Marks & Spencer started selling a line of T-shirts featuring a floral pattern. A young textile designer, Rachael Taylor, spotted the T-shirts in the show window of M&S Oxford Street shop. She noticed the striking resemblance with her own signature design of hand-drawn flowers.

As shown in the image, the design is almost identical. Ms. Taylor never gave permission to use her design, stating: “This design is my hand drawn original and has been part of my signature collection for quite some time. It's sold on my own branded products 'Rachael Taylor Designs' from kitchen textiles through to stationery. The design has also achieved international success as a licensed design, appearing on numerous home decor products in the UK, Europe & USA.”

Marks & Spencer have withdrawn the garments from sale while it investigated the complaint. M&S emphasized that they had bought them 'in good faith' from a direct supplier. A spokesperson stated: “We are sorry for any disappointment caused to Rachael Taylor Designs from the sale of a T-shirt that we bought in good faith from a direct supplier.”

Ms. Taylor started legal action, stating: “I believe a copyright infringement has been made by Marks and Spencer from using my design and making it into a garment, then selling in their stores. Not only has my design been used for profit without my permission, I believe in standing up for the civil rights of myself and anyone else who has encountered this in their own professional life.”

In a statement, Patricia van den Akker, Director of The Design Trust, said: “I hear daily of cases like this. It really hurts these small designers, both financially and emotionally.”

Keep posted!

(Image ©Rachael Taylor Designs Ltd. as featured in the Daily Mail)

Is your brand a masterbrand, an umbrella brand, a powerbrand, or a superbrand?

Nothing is simple when it comes to branding.

Let’s have a look at the different brands an try to make some order. Let’s start with a masterbrand, aka an umbrella brand. Masterbrands are corporate brands that have a number of sub-brands underneath.

For example, British Airways is a masterbrand, with its Concorde, First Class, Club World, Club Europe, and Skyflyers as sub-brands. Other examples of strong masterbrands are Coca-Cola, Unilever, and Virgin, that all have a slew of sub-brands.

A powerbrand is a brand that has instant recognition, such as Starbucks, Ford, Google, Nike, Apple, Delta, Microsoft, etc. Ideally, a masterbrand is also a powerbrand and reflects the corporate strategy and image of the company.

A superbrand is a brand that:

1) has a strong message and image

2) stays faithful to it corporate mission over time

3) makes sure that all sub-brands are in sync with the masterbrand

Examples of superbrands are Gilette, Coca-Cola, Davidoff, Louis Vuitton, Burberry, and Lacoste. Branding is the lifeblood of all companies – big and small.

No matter if you are a multinational or a SMB/SME or a ZZP, your brand is what defines you. Make sure you keep your brand strong, consistent and inspiration.

Virgin America's Brilliant Marketing Move

Virgin is known for its brilliant marketing. Keeping up with its tradition, Virgin cooked up another clever marketing move for Virgin America.

Starting August 8, Virgin America's more than 2,000 pilots, flight attendants and other crew members will wear their new and sleek uniforms designed by Banana Republic.

Luanne Calvert, Virgin America's vice president of marketing, stated: "We felt it is time to refresh our look. We felt this is the right time to hearken back to the golden age of flying. "

Airline apparel has evolved since the 1960s, when looks mattered as shown in the TV series Pan Am. At that time, all-female attendants wore colorful, sexy uniforms

Over the years, the outfits became more professional and men joined the ranks. Only a few airlines have redesigned their uniforms in recent years. 

It took Virgin America 18 months to come up with the new look.

Simon Kneen, Banana Republic's creative director, designed the uniforms so crew members could move around without losing buttons or getting stuck on chairs.

"We wanted to respect the heritage of in-flight uniform design while injecting a modern twist that's both functional and fashionable," he says.

With the new uniforms, Virgin achieves:

1. Great publicity
2. Great branding
3. A new income stream

Lufthansa’s Marketing Blunder

Lufthansa sent the following letter (seemingly handwritten and sealed with a lipstick kiss) to its male miles & more customers:

Darling,

The feeling to be the most important person in your life is wonderful. We share so many unforgettable moments. And you had always a knack to know how you can please me.

I have a small request: there is a Woman’s Special Partner Card based on your Miles & More credit card, which offers substantial benefits. With this card, I will be invited to exclusive events and can participate in amazing promotions.

And last but not least: I will get a two-year subscription to Vogue magazine or Architectural Digest. You know how much I love these magazines.

Of course I also want to collect Miles with my credit card, exactly like you that we can turn into a nice trip – may be to Paris!

I would so much like you to get this partner card for me via www.womans-card.de

Thanks so much!

Your Special Woman

Needless to say, this promotion did not set well with scores of customers. Many male customers found that it reeked of the 1950s, while female Miles-and-More account holders (including myself) cannot treat their "special man" to a partner card. Lufthansa did not have the foresight to issue a male version of the Woman's Special Credit Card.

The promotion launched a thousand tweets. “Will I be getting a letter from my sweetheart asking if he can have a partner credit card to go shopping with?” tweeted German businesswoman Anke Domscheit-Berg.

Lufthansa halted its campaign and tried to do some much-needed crisis management on Twitter. However, their initial response “we regret the impression that [the campaign] has made,” did little to calm the stormy waters.

Lufthansa also issued a press release reassuring customers that the company was “never intended to convey outdated gender roles or excluding customers from the [partner card] scheme.”

Most of us agree that the campaign is a major faux pas (outdated stereotypes, sexist) . Personally, I wonder it the one that came up with this gem was watching Pan Am at the time......

How an Amazing Woman Became the Face of the Aunt Jemima Brand

The story starts in 1888, when St. Joseph Gazette editor Chris L. Rutt of St. Joseph, Missouri and his friend Charles G. Underwood bought a flour mill. Rutt and Underwood's Pearl Milling Company faced a glutted flour market, so they sold their excess flour as a ready-made pancake mix in white paper sacks with a trade name.  Rutt reportedly saw a minstrel show featuring the "Old Jemima" song and/or a vaudeville performer, who played a character described as "Aunt Jemima",  wearing an apron and kerchief. Rutt created the Aunt Jemima character to market the Pearl Milling Company pancake mix. Since Rutt and Underwood were unable to make the project work, they sold their company to the R.T. Davis Milling Company in St. Joseph, Missouri in 1890.

R.T. Davis marketed the ready-made pancake mix using an older, matronly black woman in an apron and kerchief for branding, which was a stroke of genius. Aunt Jemima’s appearance on the package implied long hours in a southern kitchen and an authentic, homey product. Ironically, the actual pancake mix reportedly did not live up to that image....

For the 1893 World’s Columbian Exposition in Chicago, Davis needed to bring its new brand to live and looked for a woman to personify Aunt Jemima. Enter Nancy Green. Ms. Green, a storyteller, was born a slave in Montgomery County, Kentucky in 1834. She quickly charmed the crowds while doling out pancakes in the booth at the exposition. Her charisma made the Jemima brand so popular that she got a lifetime contract with Davis. This made her the first African-American supermodel and spokeswoman. Leveraging her popularity, the Davis company was renamed the Aunt Jemima Mills Company.

The Aunt Jemima character became so popular, that copycats tried to move in. The Aunt Jemima Mills Company started taking its imitators to court to protect its brand. In 1915, the Aunt Jemima Mills Company filed a suit against Rigney and Company, which had large implications for trademark law in the U.S.

Rigney and Company used the Green’s Aunt Jemima name and an image similar to Green’s portrayal of the character to sell its pancake syrup. Davis’ lawyers argued that Rigney’s use of the character “created in the minds of purchasers the belief that the said goods are a product of the plaintiff.” The judge ruled in favor of the Aunt Jemima Mills Company stating: “while the pancake flour and pancake syrup were not the same product and did not compete with each other, they were related in their uses and consumers could be misled to think they were made by the same company”. The case set a precedent, known as the "Aunt Jemima Doctrine".

Nancy Green became known as the "Pancake Queen" and traveled on promotional tours all over the country. Due to her appeal, flour sales were up all year and pancakes were no longer considered exclusively for breakfast. She was tragically killed in a car crash in Chicago on September 23, 1923. One year later, the Aunt Jemima Mills ran into financial trouble and was bought by the Quaker Oats Company. 

Over the years, Aunt Jemima has been personified by several spokeswomen and had a few makeovers. The current Aunt Jemima looks more like a working mother – she is slimmer than the original Aunt, her hair is styled and has a touch on grey, and she is wearing a white blouse and pearl earrings.

The original Aunt Jemima, Nancy Green, was an amazing woman who was smart and charismatic. At an age when most current job seekers would despair of ever finding employment ever again, she became the face of a global brand and was able to land a lifelong contract. Her financial freedom allowed her to engage in antipoverty programs. Chapeau!

Marketing Cute Coins - Royal Canadian Mint's Clever Marketing Strategy

Historically, a Mint was established as part of a respected monetary system. To state it more simply, it is a place where money is coined. Most Mints are governmental owned, such as the Royal Canadian Mint. Minting coins and printing money bills is not cheap. The Mints came up with a clever marketing strategy to make money (no pun intended): minting a limited amount of commemorative or collector coins.

This is big business, as the 2011 annual results show. The Royal Canadian Mint recorded revenues of a whopping $3.2 billion. The pre-tax profits reached $43.8 million, which makes 2011 the fourth best year for net income for the Royal Canadian Mint which operates as a corporation whose sole shareholder is the Government of Canada.

As part of its clever marketing strategy, the Royal Canadian Mint's latest collectible coin features a dinosaur whose skeleton shines at night from beneath its scaly hide. The coin actually features two images on one face. The other side depicts Queen Elizabeth II. (No, she does not glow in the dark). Coin designer Julius T. Csotonyi infused the design with a photo-luminescent element so that, when the lights are on, a depiction of the dinosaur appears, but when the lights are off, the dinosaur’s skeleton glows in the dark. According to the Mint, the luminescence will not fade with time.

Made of cupronickel, the coin has a face value of 25 cents and its sales price is $ 29.95. It is much larger than a regular Canadian quarter, which avoids confusion. The coin shows an artist's rendering of Pachyrhinosaurus Lakustai, a 4-ton, 26-foot dinosaur discovered in Alberta in 1972 and named after Al Lakusta, the man who stumbled on its bones in the Pipestone Creek bone bed.

Because the coin is so gimmicky, it received a great deal of media attention. Articles about the coin appeared in a slew of newspapers and technology sites, including CNET and Wired. The coin was also mentioned on television news programs and in a segment “Canada’s Currency Coup” on the Colbert Report. As a result, the coin already sold out of its 25,000 mintage and is selling for a substantial premium to the original issue price on eBay.

But the Royal Canadian Mint is not stopping here. The quarter is the first of a series of four coins. All these coins will feature photo-luminescent prehistoric creatures. These coins are part of its marketing and sales plan. Overall, the Royal Canadian Mint is planning as many as 150 numismatic products and collectibles for 2012.

IKEA’s Marketing Blunder

IKEA promised way back in 1999 in Brussels that it would not use any wood from primeval forests and has been boasting the slogan 'We Love Wood' on its wooden products ever since.

However, as it turns out, IKEA's wood is not always so ecological, responsible or sustainable. A report published by Swedish and Russian environmental organizations show that IKEA’s wood also comes from harvesting primeval forests in Karelia in North Russia.

Swedish state television also covered IKEA’s walk of shame. According to the conducted research, Swedwood, a subsidiary of IKEA, has been harvesting more than 560 hectares of primeval forest annually. Sadly enough, Swedwood was the first foresting company that received a FSC-certificate (Forest Stewardship Council). The certificate guarantees that the wood originated from forests that are managed in a sustainable and ecological way.

According to Linda Ellegaard of the Swedish environmental organization Protect the Forests, which conducted the research, the FSC-certificate does not really work. "Logging companies can decide themselves who will certify them. The FSC controllers are not reliable, since they do not want to deliver bad news – they want to also have a job in the next year. We have eye-witnessed the devastation of the deforestation in Karelia ourselves. However, the certification agents did not say even one bad word about the cutting down of 600-year old trees". 

IKEA stated (of course) that it is not aware of any wrongdoings. "We do not just cut down trees, but pay attention to biodiversity. We are aware of the responsibility to log wood in the forests of Karelia. However, Swedwood has the highest international standard for responsible logging – the FSC certificate. We put our trust in that". 

The FSC claims to have a clear understanding with local Russian environmental groups and logging companies. Arjan Alkema of FSC calls the research of Protect the Forest lacking. "Swedwood makes agreements in accordance with the Russian law and regulations. The value that the Russians attach to the primeval forest is different than that of the Swedes. Furthermore, Swedwood leaves 6,000 hectares in that area alone". 

It is not the first time that IKEA is faced with unsavory practices. The past of the founder of IKEA, Mr. Ingvar Kamprad, is unsavory to say the least......  

Image courtesy of Reuters "shoppers at IKEA"

Useful Tips for Pitching News

As a marketing or PR professional, it is quite likely part of your job to pitch news to journalists and magazines.

It is important to realize that not every interview you arrange or information you sent will be published.  

Once you have news to share, seek out the magazine that matches your target audience.

Below are some tips for pitching your news:

• Get to know the writers/journalists by checking out what they have written about before.
  
• Feed the right story; it must be interesting / newsworthy.
• Only pitch new products or significant product changes.
• Only .pitch case studies when your company is mature / well-known
• A pitched case study or article must contain a hot topic, such as solving a business problem with a proprietary technical solution.
• Only pitch executive profiles of well-known appointees / executives.
• Only respin old news if it has a new angle.
• Highlight the unusual.
• Pitch in a timely manner; the earlier the better. If not pitched in 0-day, the hot topic will be all over the news within 2 hours.
• Provide compelling collateral; supply sources that are appealing.
• Pitch by email; journalists and writers hate to be “stalked”.
• Never intimidate; be professional.
• Once published, distribute the article via your own channels (Blog, Twitter, Facebook, Linkedin).
• Search on social media and forums for the article. Once found, share and leave comments. Also search Twitter for tweets about the article, and retweet.

Success!

Starbucks Bugs Customers – Adding Bugs To Drinks Is Not A Good Idea

Recently, Starbucks decided to use a new colorant for is pink drinks and glazing. Instead of using milk products and real strawberries, the coffee chain decide to use chochineal extracts that consist of crushed bugs from South America. 

Cochineal extract is allowed by the FDA as a food colorant. Since it is cheaper to use, Starbucks used it to color its popular Frappuccino Strawberry and Strawberry Smoothies. 

Vegans and vegetarians were not pleased when they found out that their soy milk Frappuccinos and Smoothies suddenly contained animal products. Customers in general were bugged by the idea that there were bugs in their Starbucks.

As usual, the power of social media was harnessed; sentiments were vented in online forums and in YouTube videos. The online petition on Change.org got almost 7,000 signatures.

Starbucks got the marketing message and announced that from now on, lycopene extracts (from ripe tomatoes) will be used. Cliff Burrows, the President of Starbucks U.S., apologized and posted the following blog post:

“As I first shared on March 29, we’ve learned that we fell short of your expectations by using natural cochineal extract as a colorant in four food and two beverage offerings in the United States. Our commitment to you, our customers, is to serve the highest quality products available. As our customers you expect and deserve better – and we promise to do better.

After a thorough, yet fastidious, evaluation, I am pleased to report that we are reformulating the affected products to assure the highest quality possible. Our expectation is to be fully transitioned to lycopene, a natural, tomato-based extract, in the strawberry sauce (base) used in our Strawberries & Crème Frappuccino® blended beverage and Strawberry Banana Smoothie.

Likewise, we are transitioning away from the use of cochineal extract in our food offerings which currently contain it (Raspberry Swirl Cake, Birthday Cake Pop, Mini Donut with pink icing, and Red Velvet Whoopie Pie).

This transition will occur over time as we finalize revisions and manage production. Our intention is to be fully transitioned from existing product inventories to revised food and beverage offerings near the end of June across the U.S.

We thank you for your continued feedback, support and comments, and we encourage you to continue to share your thoughts here as well.”

Although Starbucks bugged its customers, it did excellent crisis management.

Ten Steps To Get Purchasing Approval

As a marketing or PR professional (or any other manager inside an organization) you often need to get permission for a purchase. Depending on your function, it can vary from a software application to the services of a PR company. Getting permission is not always easy.

Following are 10 steps to make it easier.

1. Ask the Chief Financial Officer, Controller or VP for your company’s purchasing guidelines
   
2. Determine the minimum criteria required to obtain approval for a purchase, including guidelines/thresholds for return on investment, net present value and internal rate of return.
   
3. Get vendor testimonials and/or customer references.
   
4. Identify the main 3 to 5 quantifiable benefits for the organization as well as the KPIs that can be used to measure results for each of these benefits.
   
5. Ask the vendor for their ROI model or the vendor for their ROI model or assistance in quantifying the financial benefits from the purchase.
   
6. Identify the payback period, ROI and NPV.
   
7. Prepare a business case with the ROI model and explain why the purchase is essential for the department and the enterprise. Emphasize the quantifiable benefits that senior management looks for to justify investments and explain the qualitative benefits and how the solution will benefit the organization.
   
8. Once the purchase is approved, put in place a measurement process to track its return on investment and impact on the organization.
   
9. Document the results and share them with senior management.
   
10. Perform a follow-up analysis 12 months after the implementation to show the ongoing benefits of the purchase. This will increase the chances of getting the next project approved.

Success!

How the JOBS Act Helps Startups With Crowdfunding

President Obama recently signed the Jumpstart Our Business Startups (JOBS) Act which makes it easier for startups and SMB/SME to raise funds online.

Main highlights:

• Small companies can increase their number of shareholders to1,000. This is double the amount that was allowed under the old regulations dating from the 1960s. Small businesses must now file with SEC when they reach 999 shareholders.

• SEC regulations are also loosened to encourage crowdfunding. Small businesses can generate up to $2 million from various small investors.

• Small businesses that want to go public also have it easier now. The ceiling for exception was raised from $5 million to $50 million. The logic behind this change is, that more investments will be made and more jobs will be created.

• Companies are allowed to use advertisements to solicit investors; this was previously forbidden under an SEC regulation.

• Is has become easier for companies to go public sooner. Furthermore, as an “Emerging Growth Company,” a SMB/SME can avoid the bulk of SEC regulations and fees in the first few years of being public.

• Last but not least, the number of shareholders investing in a community bank is increased from 500 to 2,000.

JOBS Act allows companies that raise funds through crowdfunding to sell parts of their company or pay back the money. Before, they had to compensate investors by giving away rewards for different levels of investing. They would give investors a free copy of their product or free use of their software app for a certain period of time. Other companies opted for more creative compensation, such as dinner with the inventors.

With the new legislation, we can expect a slew of new crowfunding portals. If JOBS Act will also be a powerful instrument for creating new jobs remains to be seen.

Library Marketing – How A Dutch Library Enticed Social Media Users

Libraries are going through a tough time due to changing reader’s behavior. Readers want to read digital and prefer to look up information on Google or Wikepedia instead of in an encyclopedia. That is the reason why Encyclopedia Britannica recently announced that they will stop printing their gorgeous, leather-bound tomes.

In The Netherlands, many libraries had to close down or merge. As a result, they lost their function as a local information hub and place to relax and recharge

One library came up with a clever reach out plan. It hosted a meeting of a local Social Media Club and made sure to inform the media about it. The director hosted the event to turn the digital trailblazers into advocates for the library. As part of his strategy, he made is very personal by serving each participant a cup of coffee. They happily tweeted about this positive experience. To keep an ongoing relationship, the director gave each of the 80 participants free membership card (valid for 6 months).

Why was this marketing strategy so successful?

• The experience was very personal, which is a nice change from digital interaction
  
  
• Participants will associate the digital event with the library
  
  
• Giving a free membership card is soft and non-intrusive “sell”
  
  
• By personally serving coffee, the director built one-on-one relationships
  
  
• The library showed that libraries and digital communities are a nice fit
  
  
• Participants were turned into brand advocates, using their social media to share their positive experience

(Image: "Book 4.0" artwork)

Ten Tips for Freelancers and SMEs/SMBs

1. Avoid being on the Road (too much)

As we all know, we spent too much time on the road. All these hours cannot be billed. Try to communicate as much as possible by email, phone and Skype. Try to schedule meetings in the same region on the same day. Check out the best way to travel: car, public transport or (my favorite) a combination. It’s best to schedule meetings outside of rush hour. It saves both of you time.

2. Cold Calls are Tricky

Cold calls as a tool for drumming up business is tricky. It is time-consuming and should therefore well-prepared. For many SMEs/SMBs, cold calling is not the way to go. WOM (word-of mouth) is far more effective and cost-effective.

3. Keep Communicating

Keeping in touch with your customers is the key to your success as a freelancer of SME/SMB. There are many ways to keep in touch: newsletters, emails with special offers, and social media. Make sure to call them once in a while to ask if everything is fine. Make sure to send out season’s greetings and personal congratulations (e.g., birth of a child). Use your business page on Pinterest, Facebook, and LinkedIn, as well as your Twitter account to inform update, and spread positive messages. Don’t underestimate the power of your corporate blog – you can position your business perfectly that way.

4. Presentations Should Rock

Presentations are still expected. But (potential) customers are sharp, so make sure your presentation is short and to the point. Keep your power point presentations short and avoid cutesy graphics/animation. Make sure there is a call to action on the last slide. It is a good strategy to send them the presentation in PDF later on by email.

5. Respect the Uniqueness of Your Prospect

Each prospect is unique and wants to be recognizes as such. You need to know what makes your potential (and existing!) customer tick. What are the pain points they are facing? What is their history with similar companies/offerings like yours? Doing successful and long-term business is based on trust. You will never be able to make all your customers happy all of the time. Be gracious, and when it does not work out, make sure your prospect or customer never looses face.

6. Make Sure You Both Have the Same Agenda

A lot of bad feelings between supplier and customer results from the simple fact that they are not “on the same page”. The prospect or customer believes that it will get A, while the supplier is convinced that the prospect or customer wants B. The best way to avoid this kind of Mexican stand-off is to send points of understanding combined with action items after each meeting.

7. References and Recommendations

References and recommendations are important. However, it is not always possible to supply them, especially if you provided services for the military, homeland security or other companies that required the freelancer or supplier to sign an NDA or confidentiality agreement. LinkedIn offers a great way to circumvent this issue as long as there are enough recommendations on the freelancer’s/supplier’s profile. A blog is also a good way to position yourself as a though leader without infringing on any agreements.

8. You Cannot Win Them All

Rejection is part of our professional lives. Job seekers are rejected for jobs they really want, and freelancers and suppliers sometimes loose out on juicy contracts. Proposals can be rejected for many reasons: the price is too high, they got a better offer, they had to hire a freelancer/company due to internal politics, the job/work is canceled or frozen, or there just is not any personal chemistry. The best way to handle this kind of rejection is to be gracious, leave communication channels open, and realize that you cannot win them all.

9. Know Your Target Market

Your product or service might be great, but it would not fit all customers. It is important to know your market. Who needs our products/services? What pain points do you address and how much are your (potential) customers willing to pay for it? Communicate with your (potential) customer to identify their existing as well as future needs.

10. Build a Relationship

Your attitude, skills, and aptitude determine if a customer wants to do business with you. Be generous with (free) advice and think with (and not for) your customer. Once you are seen as a partner, and not a mere supplier, you will have a mutual beneficial relationship that could span years. Nothing is forever, especially in this economy, so nurture good relationships. Even is a customer has to drop you, his or her recommendation and goodwill is worth its weight in gold.

Nicolas Sarkozy turns to Twitter to boost his Presidential Race

Nicolas Sarkozy did something clever: he is boosting his online presence on Twitter, the popular microblogging. The official account of M. Nicolas Sarkozy, President of the French Republic, is being fed in part by M. Nicolas Sarkozy himself as a private citizen.

During an interview on Europe 1, Nathalie Kosciusko-Morizet, the French Minister of Ecology, stated that she is all in favor. Not surprisingly, she is slated as becoming the official spokesperson of the future candidate. "This offers direct means of communication. I find it fun. I understand that it is based on the concept that NS (=Nicolas Sarkozy) will write and tweet the message himself."

The first tweet appeared on February 15, 2012 was signed NS. The message said: "I accepted the invitation of TF1 to appear in the news segment at 8pm tonight and I'll meet you all there." All that was missing: XOXO!

Two hours after the tweet hit cyberspace, the NS Twitter account already boasted 15,593 followers. To compare: main rival François Hollande has 147,186 followers.

Even in traditional France, politicians are harnessing the power of social media!