The Pit - IMI Trust

There are some huge tech success stories around the world.  Many that started with a few people with vision and now household names.

Steve Jobs with Apple Computer, Larry Ellison with Oracle, Sandy Lerner and Len Bozack were the brains behind Cisco Systems and Jerry Yang & David Filo made Yahoo! stratospheric.  More recently, Larry Page and Sergey Brin made Google synonymous with search, Chad Hurley and Steve Chen did the same with YouTube and Online Video.

All these companies have been helped along by the capital corporation with the midas touch, Sequoia Capital.  Without Sequoia Capital it is likely that Google and YouTube may have fallen to oblivion. They needed help to get off the ground.  Genius only gets you so far.  Money takes you to the next level. Not just money, but business acumen and experience in finding ‘the next big thing’.

Sequoia Capital have sunk money into many companies that have become hugely successful.  After searching on Google, you discover that 10% of the value of the NASDAQ is made up of companies which have had some sort of business involvement with Sequoia Capital.

They promote themselves as the entrepreneurs behind the entrepreneurs.

The world of capital raising can be highly lucrative and very risky. And many capital raising companies raise capital for the sake of taking a cut.  Sequoia Capital have backed their deep pockets up with great results.  They have ensured that entrepreneurs are able to grow their dreams.

How many Google’s have we not seen?  How many other tech nerds with a passion have missed out on a multi-billion fortune?  Without the seed funding, and without the business guidance, where are these guys today with Page and Brin and Hurley and Chen?

Behind every great success story there is a depth that is rarely explained or mentioned.  We see the end result, nothing else. Companies like Sequoia Capital make it happen.

The reason they are successful is because they are passionate and have a believe in the value of ‘The Idea’ and ‘The Culture’ underpinning the idea.  In business, the support is what you need to succeed.  That and billions of dollars.

Whether it occurred by design or coincidence it is hard to say but the Commonwealth Bank has a smart, new advertising campaign.  An advertising campaign that other companies have utilised in the past - Making good news out of old bad news.

Their current campaign highlights the fact that their staff ‘Open Doors’ and they are recruiting new staff all the time to help you.  This is, of course, great news for you as a consumer because you are probably fed-up with inefficient systems and long delays to carry out even the most rudimentary of tasks like paying in a foreign currency cheque.

However, what the advertisement doesn’t highlight is that the Commonweath Bank has presided over 20,000 or so job losses over the previous decade.  This reduction in staff numbers has served a purpose.  To create this ‘new’ era of job creation.  It works very well in the public eye as the average punter has no idea or want to find out about a company’s track record.

This strategy has worked with other banks around the world with Natwest and Lloyds Bank in the UK closing huge numbers of branches over the 90’s, that inevitably turned into glossy wine bars and eateries, and then, some time after, opened new branches with large advertising campaigns promoting the fact. 

Having worked in large financial institutions for the early part of my career I recognise the banking ethos of ‘Making Hay While The Sun Shines’ and ‘Cutting The Fat When Necessary’.  In periods of recession or slow growth, banks readily chop uneccessary, unprofitable arms and when they are profitable, the money they make they spend recklessly with huge bonuses, frivolous spending and increased staff numbers.

So, what is the end result for the consumer?  Nothing really.  As long as the end experience is the same they don’t care.  If it isn’t they notice and they may be motivated to switch to a different provider.

As a business owner, you should look to bad news in the industry or within your company to create opportunity and good news.  The banks have demonstrated how this is done and you can too.  It doesn’t have to be a monumental story, just something that is a point of difference for you and how it can be exploited.   And yes, the use of the word ‘exploit’ is deliberate…

Marriott International Hotels has annouced that its website Marriott.com will shatter its revenue record in 2006 by generating nearly $4 billion in sales.

The have a world-class brand and world-class facilities but thousands of other companies don’t have the online penetration they do.  How did they achieve these online sales?

Simply put, they have made the website compelling for the user to make a purchase.  Marriott have conditioned the user to make their purchasing choices through the website.  They have done this by having these features:

• Easy browsing of the website so users can pick dates, locations, iteneraries very easily
• Good photography of the locations so people can visualise each place
• Favourable rates from offline purchases
• A variety of different rates with different inclusions so there is no need to call an operator for ‘non-vanilla’ requests
• Immediate reservation / ticketing so there is immediate purchase satisfaction

All this and there is a great email marketing campaign where discounts are offered to hotels within your specified region and there is continual cross-selling and upselling of products that would interest you.  City and Destination Guides provide ample information for the location of travel and there are options to book events at your destination too.

Easy Decisions To Make

The consumer is armed with all they need to make the right buying decision.  There is no reason to phone to make an enquiry or go to a travel agent.  All the necessary information is at a click.  So people are comfortable with this system. 

The hotel booking service by Marriott has conditioned the user to believing their website is their main, and most useful, shopfront.  This is where the travel industry has go it so right with online airline ticketing is also massively popular.

Don’t be fooled into thinking that because you have a finance business or a florist or a funeral director that you can’t condition your users to think the same way.  Give them options and information to make their buying decision and they will. 

This is why online stock trading has become so popular.  Many investors conduct their own research and are comfortable making the trading decisions themselves.  They can do this because the end-to-end process is all covered online.  Technical tools, research, immediate pricing, comparison pricing and so on, is all immediately available to the user so they can make a buying decision. 

With the internet and your website the principles are that simple.