The Pit - IMI Trust

When companies choose to have nauseatingly redundant Flash intro pages is having a Skip Intro button signifyng that the content on the page is worthless and not worth seeing?  

Well…Yes!  

Does a kettle have more value because it displays a pretty, neon light show before it starts boiling water? Well…No!  

Redundant design is bad.  There is a lot more to say about this subject so….*****permission to skip blog post enabled*****

Now when you use Mozilla and have Skype installed, a Skype icon appears next to phone numbers on browsers. You simply click on the icon and the call is placed. 

For those not in the know, Skype is the most popular global internet telephone system.  Calls can be placed through your internet connection as if you were making calls on a landline.

What makes this simple addition so remarkable is that Skype have accessed the second most popular browser on the net.  Approximately 18% of all web users use Mozilla.  This means millions and millions and millions of people will have this functionality available to them.  No amount of advertising and sponsorship can match that reach. 

By creating a simple, yet powerful joint venture, Skype will boost their revenues by millions overnight.  You too could do the same thing.  Maybe not to the same scale but by choosing your joint venture partners carefully you could effectively double or triple your business.  If you do, you may need to use this number…

- Say Hello to the Australian Tax Office.  HELLO!!

Notice how Cisco Systems has been trying to protect its trademark of iPhone from usage by Apple?

Notice how Apple Computers and the Beatles record company Apple have been in a legal feud for decades because of usage of the word Apple?

Notice how Microsoft’s Vista operating system has been launched to huge fanfare, meanwhile failing search engine, Alta Vista has not put up a fight?

Will Alta Vista’s usage increase during this period of Microsoft marketing?  They have a lot of ground to catch up on Google but any ground is good ground.

Unless you have been hiding with the weapons of mass destruction this week, you would have noticed that Microsoft have released Windows Vista.

You have to love the hard sell. Not many corporates really do it to consumers anymore. Not Apple, not Google, not the oil companies, not the car manufacturers. They are all into the brand.  Microsoft have allocated US$500million to marketing their new operating system and it shows.  Come back Crazy Frog all is forgiven.

Actually, Microsoft, well done for bringing back blanket coverage in marketing and sticking it in my face everywhere I look. It is a good reminder as to why you are a $300 billion company.

The truth is the only companies persistantly doing the hard sell is the credit card companies and the banks. Can’t understand why they keep on announcing record profits.  Probably because if you put a product in front of a consumer that services a need then they consume it…

When I checked out the Microsoft site to read the Vista marketing, i was stunned to see 100 reasons as to why Vista is so great. If you were absolutely insane… that is perfect for you to discover all of Vista’s benefits. if you are a bit more human, they had the highlighted benefits. From a marketing perpective, this warmed my heart.

The truth of the matter is I am going to Harvey Norman, or similar electrical retailer, and ask for a PC that is loaded with XP.  I know for a fact they will be fire-sale-ing that stock so I can get one or seven really cheap.  That is only one reason but better than the 100 reasons Bill gave me for getting Vista. 

Experts have come out of the their holes to comment on Vista.  Us included. The reality is in 2 to 3 years time, we all know we are going to be using it. This should impact their share price of (MSFT) Microsoft significantly. Will its recent bull run continue until then?  Maybe.

PS. Bill, I dont care that you have copied Apple, nor do I care that they will release something even more impressive with Leopard. Which they won’t because I’m over operating systems named after big cats.  Just please be taking notes when they do. Look forward to my Wow beginning Now!

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.

Corporations spend billions a year promoting themselves. Advertising on billboards, TV, radio, online banner ads, nearly everywhere you look. On your television, on buses, painted on football fields and even on the skin of boxers, there is brand placement everywhere.

Companies focus on the promotion of their brand as a means of communicating with their clients. They do this through their logo, their slogan, their colours and the types of people that appear in their advertisements.  On the other hand, some companies use the ‘Celebrity CEO’ to push the brand through.  Richard Branson and Donald Trump are known for their amazing abilities for self-promotion.

Web 2.0 has capitalised on this theme. The principles of Web 2.0 are that there are open channels of communication.  Consumers can connect with the company. On the flip side, a CEO can present themselves to be human. This allows consumers to move beyond the brand and create a connection with another human.

This connection creates loyalty.

A good example of this is Jonathan Schwarz. A recent blog post headlined 5 things highlights 5 things you may not know about him.Why does he do this?

The answer is simple.  To break down barriers and create trust and loyalty. It breaks down the myth of the superhuman or the egotist at the head of the company. It allows him to connect.

Branding is an important aspect to the growth of any company. Introducing your clients to a personality within your business builds loyalty.

Steve Jobs at Apple has done an amazing job in pushing forward Apple’s growth. The personality has become an integral part of the Apple Brand where he garners unwavering loyalty from users of his products.  The downside to this is that there is concern about the future of company when Jobs steps down.  It is clear there are benefits to showing personality but there are issues too.  These themes are relevant to your business too.

• How do you build loyalty with your client?
• What personality shines through your business?
• Does that personality appeal to your target audience? 
• What is the impact on your company if that personality disappears?

The answers are different to different companies and their particular situation.  What is crucial is that you should explore these themes and how they can impact your business.  Don’t be scared to try something new.

Da Vinci Code was one of the highest grossing movies of 2006 and it came from one of the best selling books in the last 30 years. However, this post is more to do with the man and than the Dan Brown legacy.

It is a quick guide as to what made Leonardo Da Vinci, a man that will be remembered throughout time.  He was always considered a great artist but few have ever viewed Da Vinci as a businessman… and yet he was exactly that.

Leonardo was a genius in many different ways. He was an inventor, an artist, an engineer, a scientist and a brilliant sales person.  The Mona Lisa is one of the most famous paintings on the planet and a priceless piece of art. There are so many things that could be written about Leonardo Da Vinci but we will focus on his incredible ability to sell and market himself.

To fund his work, Leonardo had to generate an income which would be able to pay for himself, his students and his side projects in which he would work on.

Da Vinci knew exactly where to go. He went to the “Warlords” of his era and propositioned them. His idea was simple ‘Go where the money is!’ Now you may ask… how does an artist get a gig with power hungry and ruthless “warlords”?

It is recorded that one of his employers killed his own brother, committed incest with his sister and would regularly poison his dinner guests. A meal to savour to say the least. This man was the most hated, feared and envied man of his time and known for his bloodthirsty mentality.

And beside him, working for him was one of histories greatest men. Imagine one of Adolf Hitlers artists being regarded, as one of the greatest that ever lived. This same man was that deluded, that he would hire historians to search his bloodline, to prove he was from the bloodline of the Gods.

Leonardo was smart… he knew what the “Warlords” valued and he gave it to them. Leonardo would not pitch them on his ability as a painter. No… He would pitch them on his ability to create War Weapons and then artwork which would appeal to their Vanity.

He was able to satisfy some very powerful motives! He was able to satisfy the desire for Power, Wealth, Social Status and through his art… vanity.

He also created for his employer one of the most powerful tools he could ever offer a war lord. It was absolutely revolutionary for his day. This tool came in the form of a detailed and exact “MAP”. This gave his employer vision and power… and for Leonardo… it gave him money!

He would play stage manager and conductor to some of the greatest parties of his era. He became renowned throughout the wealthy and powerful as the master orchestrator of parties.

He moved to Venice… a city of new money at the time and also a city in crisis.  Leonardo used this opportunity to sell his invention - the idea of an underwater army complete with armour. Yes… the first recording of the idea of scuba diving equipment.

He used his ideas and art to generate income, as well as to protect his own interests! This idea was far fetched, but studies today on some of his exact designs have been tried, tested and proved to be successful.

What was brilliant about this is that without his ability to promote his services, he would not have garnered the reputation he did. The interesting thing is that Leonardo was completely against war, but yet he designed some of the most brilliant war weapons. He designed the first tank. Something which was not first used until WWI.  Now this was not designed to be a motor powered tank, but a man powered tank! His design is ingenious! It wasn’t until World War I, that a tank would be designed and used in a war.

This work allowed him to fund his studies into nature and the human body! More then that, it allowed him to create art pieces. Whilst working for the Vatican during the day, Leonardo would be performing autopsy’s in the evening. One of his discoveries was that the aging process was linked to excessive nutrition of the blood.

This finding is what we know today as cholesterol.

The ability to promote your service is a powerful skill. The ability to market your services and products determines how your clients remember you. Sometimes… you need to sacrifice for the sake of your long term vision, exactly as Leonardo did. Leonardo always tried to make sure that everything he did, generated a uniqueness.

Even though he painted objects, scenes or portraits which had been done many times before… Leonardos unique touch would not be rushed, and would have him known by millions of people after his death.

So as business owners, how can we make what we do unique?
How can we have our clients remember us?
Do we create grand ideas and grand plans but in the background put together lots of small jobs to make it all work?
How can be satisfy the desires of our cleints through our business and through our website?
What are some of your ideas about how you build loyalty with your clients?

These are all modern issues and Leonardo Da Vinci had it figured nearly 500 years ago.   

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…

Give yourself a pat on the back and bask in the glory of your achievement.  YOU are the ‘Person of the Year’.  Yes it is true. This is not a hoax.

Time Magazine has voted ‘YOU’ as the ‘Person of the year’. I have to say, you did have some pretty stiff competition in Iranian President Mahmoud Ahmadinejad and North Korean leader Kim Jong Ill.

Not sure how they figured out the other nominees as ‘YOU’ is a fairly broad label covering ‘Me’ and of course ‘You’. I am gladly accepting my award from Time Magazine.

‘You’ are the winner because you are part of the development of the next generation of business. The winner of Time Magazines Person of the Year are the Internet users behind the self-made content on sites such as YouTube and MySpace. They called it the digital democracy.

Time highlights user-generated content as the winner, but if you want to peel the orange and get to the real juice behind their staggering success then look at the Social Networks behind these companies. That is where the success really lies.

More and more Fortune 500 companies are adopting this model in the US but in Australia we have been very slow to act. Australia for some reason, still likes the idea of the faceless business which offers no real human dimension. 

The best example of Social Networks I have seen is actually from a TV Show. Yes… and if you watch it… you know what I am talking about.

The Sunrise Program on Channel 7 has done this brilliantly. And the Seven Network have done it so well that Channel 9 still can’t figure out why they are losing in the ratings. Sometimes marketers and Eddie McGuire miss the absolute obvious.

When you watch it you actually sense that the hosts actually are family.  There is a sincerity present that is missing from the Channel 9 alternative. This offer of family is extended out to their audience. They also know their audience very well, knowing their desires and fears.

This audience has attracted such a strength that they are now having an impact in federal politics. Their “Cool the Globe” campaign to highlight climate change is a great example of this.

Kevin Rudd used to feature every Friday where he and Joe Hockey would talk about Political issues impacting Australia. At the end, they would always have a joke and give each other a bit of stick.  Finally… real, humans on TV that have flaws. I respect Joe Hockey’s broken ankle from touch football on the Parliament House lawns.

What’s interesting is look who is the Labor leader now. In fact, I used to watch him every Friday, wondering why he wasn’t the Labor leader … and now he is.

Go to the Sunrise and see what the first question you are asked is… “Are you a part of the Sunrise family?” They even call themselves Australia’s Breakfast family. Grant Denyer expressed this strongly in his last show.

Social Networks has an important role to play in Australian business. In the past it was limited to networking groups where people went along to a function held at the local RSL. Now they go online, and they have access to whatever group they want, when they want.  Business, finance, sport, stamp collecting, anything…

Time Magazine has identified and highlighted this.  So ‘YOU’, sit down, have a drink and congratulations on your award!

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.