I thought about the opportunity of capitalizing on every interaction and moving away from being a cost of doing business to being an investment in building relationships.

Jim Bush – Executive Vice President of World Service – American Express

Let’s give Jim Bush a “marketer of the day” award for his mindset on how to leverage the service function to impact the bottom line – via customer engagement and not simple transaction management.

As he declared in a recent Fortune interview:  “We let the customer determine how much time they want to engage. That engagement drives value. We serve customers, not transactions.”

Even if you don’t work in service, adopt an “outside:in” perspective and always consider what you can do to positively impact customers.  It may come as a surprise that the AMEX service team is focused on and considers what it does a company competitive advantage.

Learn more in this video clip.

Also eye-opening is the application of the net promoter concept.  Bush describes the thinking:  “For every servicing transaction, we ask, How can we get the customer to feel better about American Express and recommend it to a friend?  That’s a promoter.”

Learn more in this video clip.

And, finally, here’s a wonderful, concise management leadership tip that we can all apply every day:

“Giving our people freedom, boundary, and purpose, combined with holding them accountable, drives economic value.”

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Wherever you reside in the customer touch-point and sales/marketing chain, consider yourself a value-adder and engagement builder – and then act and execute with that mindset.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff at gmail dot com.

Global retailer IKEA has just announced that it’s entering (or perhaps creating?) a new category of integrated electronics and furniture.

Beginning June 2012 in Stockholm, Milan, Paris, Gdansk and Berlin, IKEA is launching the new UPPLEVA line consisting of:  HD Wi-Fi-ready LED television, 2.1 sound system, Blu-ray/DVD/CD player, wireless sub-woofer, and 5-year guarantee.  Retail pricing starts at about $955; and more markets will be added later in 2012, with world-wide availability expected by mid 2013, per news reports.

According to IKEA, the concept is ”a completely new range that integrates smart TV and sound system with furniture. UPPLEVA brings beauty and functionality to the living room, solving the problem of cable clutter and miss-match between TV and furniture.”

Some readers may remember when televisions came encased in elaborate wooden cabinets.  Needless to say, technology has taken us a long way from those days, and while my first reaction to IKEA’s news was a desire to learn more, I was skeptical about the product concept.

However, consider that IKEA’s concept does address a significant consumer pain point, or maybe multiple pain points:

•  Electronic component set-up and integration is hard for most people, and the cables are a pain in the ass for everyone;

•  Finding suitable “housing” for today’s flat screens and components, including wall mounting, is not easy.  Retrofitting into existing cabinetry is typically difficult;

•  Selecting the specific brand and model of electronic components is hard;

•  Dealing with multiple remotes and/or programming a universal remote is not fun;

•  People typically live in less square footage outside the US, so anything that maximizes space in a functional manner has a good chance to be appealing, which is why the European launch makes sense.

Leveraging a core strength, one of the benefits of IKEA’s UPPLEVA is that there are custom cabinet configurations to choose from.  This comes in handy, because according to news reports, the tv can be had in sizes ranging from 26 to 46 inches.  Click here to see some of the configuration examples.

Back to my skepticism.  Many consumers will be apprehensive about an all-in-one electronics concept, fearing poor quality.  That may be true, but doesn’t have to be.  IKEA is outsourcing the electronics to a Chinese company.  I was surprised by these news headlines:

• Is Ikea’s Uppleva all-in-one HDTV entertainment system a game changer?  Leading tech review website CNET

• Did Ikea just beat Apple to the all-in-one television?  Los Angeles Times

Let’s go back to how IKEA defines itself, in its own words:  “The IKEA Concept is based on offering a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”  In this context, the new HD entertainment system makes sense and fits with the company’s strategy.  Whether it fits with consumers throughout IKEA’s geographic footprint is another story, especially in the US market, which is why starting in Europe is the right way to go.

At the end of the day, it will be the perceived financial value of the combined quality of the electronics and ease-of-use for the overall configuration that will make or break this concept.  In the meantime, a better name would be nice.  The company always goes with Swedish product range names, which is fine.  But, in this case, I find it hard to believe that ”I want an UPPLEVA” is going to catch on!

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IKEA’s new HD entertainment furniture system is easy to understand from a corporate strategy and mission standpoint.  It even seems to address a consumer opportunity area.  Give them high marks for thinking different and being willing to innovate.  That doesn’t guarantee success, though.  Furniture and retail furnishings are one thing.  The electronics business is a completely different  animal.  Just ask Best Buy.  Let’s see what happens.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff at gmail dot com.

I’d like to share six management and marketing ideas that stood out to me recently, along with an “action step thought starter” for each one.

Let’s begin with four management and leadership ideas from Facebook (thanks to Miguel Helft and Jessi Hempel, for their insider profile in Fortune).

1.  Get New Employees Contributing Fast

Do you have an introduction plan for new employees?  When I joined Tate & Lyle, my boss created a great induction program for me (hey - British company, British word), which I then adopted and built-on for the people I hired.

Facebook has Bootcamp, which is a six-week program originally designed for engineers.  Here’s what I think is cool and powerfully effective.  Apparently, it’s common that a new engineer will have six emails waiting when he turns on his computer.  Beyond the welcome message are five tasks to be accomplished, including website fixes.  The thinking behind this approach is to quickly demonstrate that the new employee has power to make things happen (in this case, website changes); and to encourage independence and creativity.

Action Step Thought Starter:  Whether you use emails or a written plan of attack, how can you position your new team members to hit the ground running, and at the same time, reinforce your key cultural and/or operating principles?

2.  Keep Your Door Open

Remember office hours from your university days?  Mark Zuckerberg apparently applies the practice at Facebook.  Even interns can stop by to share projects.

So, if you want to foster greater interaction with your team and manage your time effectively, this idea may be for you.

Action Step Thought Starter:  I prefer a simple open-door approach, but if you’re concerned about being overwhelmed by visitors, set aside specific hours during the week.  And remember, you get to (and need to) visit colleagues as well.

3.  Talk is Cheap – Get Started Already!

Cartoon: Tom Fishburne. http://tomfishburne.com/2012/03/powerpoint-the-idea.html

“Mock-ups are favored over conversation” and “code wins arguments” at Facebook.  It means trying to bring an idea to life with a prototype or otherwise kick-start the discussion and persuasion process as opposed to a PowerPoint chart.  Great stuff.

Action Step Thought Starter:  Sometimes you need to start working and get down the road first to sell your idea.

4.  Keep Your Team Fresh

“Every year or 18 months engineers are required to leave their teams to work on something different for at least a month.”

Action Step Thought Starter:  I realize this is hard to implement, but where and when possible, rotate personnel or give them special projects so they can get exposure to new challenges, new customers and new opportunities.  It’s an effective way to keep key players rejuvenated and pumped-up.

Let’s continue with two marketing ideas I liked from Lululemon (culled from Dana Mattioli’s recent article in The Wall Street Journal).

5.  Real-Time Customer Feedback

Lululemon puts chalkboards near fitting rooms to capture on-the-spot input from customers, which are forwarded to corporate headquarters.

Action Step Thought Starter:  What can you do at your company to create clever ways for customers to give you real, instant feedback?

6.  Create a Purchase Sense of Urgency

Similar to Spanish retailer Zara, Lululemon works off short product stocking cycles to encourage shoppers to buy immediately.  The company’s CEO, quoted in the WSJ article, remarked that “our guest knows that there’s a limited supply, and it creates these fanatical shoppers.”

Action Step Thought Starter:  A “scarcity” strategy has to be applied carefully and probably doesn’t make sense in most situations, but the essence of the idea is something we should all try to duplicate.  How can you create a relevant version of the retail “buy it now – it won’t be here later” mindset to speed the customer purchase decision-making cycle?

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Never stop learning and getting better!

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Photo: Coca-Cola Portugal Facebook.

Sponsorship is often misunderstood and poorly utilized, even within the marketing ranks.

So, it’s good to see a terrific example of sponsorship activation from Coca-Cola Portugal.

Building on its sponsorship of Benefica Stadium, Coca-Cola decided to engage its fans with a contest for special access to a luxury suite.  Been there and done that, you say?  Maybe, but not like this!   Coca-Cola created a unique experiential setting for eight fans (teammates) to enjoy in their very own ultimate sports fan dormitory.  Promotion communication included social media marketing with Facebook.  Check it out.

There are so many ways for sponsorship marketing to go sideways.  Here’s a Top 3 Getting Started Checklist for great sponsorship results:

1. Get your strategy right.  This comes first!
2. Align the sponsorship platform with your strategy. Sounds simple, but you’d be surprised!
3. Create and execute a robust activation plan.  If you can’t activate to achieve your objectives, you’ve got the wrong sponsorship platform!

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Beyond getting the strategy and platform right, powerful sponsorship is all about activation and user engagement.  To Coca-Cola Portugal, I simply say, Goaaaaaallllll!

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

What’s ZMOT and why should you care?

Jim Lecinski, Managing Director, U.S. Sales & Service for Google, is the author of the e-book, ZMOT – Winning the Zero Moment of Truth.

According to Lecinski, “ZMOT is that moment when you grab your laptop, mobile phone or some other wired device and start learning about a product or service (or potential [mate]) you’re thinking about trying or buying.”

He adds:  “This is how consumers live and learn and make decisions today: from ratings and review sites, from friends on social media, at home and on the go, and (more than ever) from video. They learn from search results, user reviews, four-star ratings, text ads, image ads, news headlines, videos and even good old-fashioned official brand websites.  They learn and decide, in short, at the Zero Moment of Truth.”

Graphic: Google.

“When consumers hear about a product today, their first reaction is ‘Let me search online for it.’ And so they go on a journey of discovery: about a product, a service, an issue, an opportunity. Today you are not behind your competition. Your are not behind the technology. You are behind your consumer.”

Rishad Tobaccowalla, Chief Strategy & Innovation Officer, Vivaki. Quoted in Winning the Zero Moment of Truth.

I recommend you put ZMOT on your reading list now.  Granted, the e-book is an example of terrific content marketing on behalf of Google.  But it’s also much more.  ZMOT will either reinforce what you already know and believe (refreshers are good) or it will help you catch up to where you should be.  Download a free copy here.

ZMOT is a simple, yet powerful reminder of something fundamentally important and critical in today’s business world:  “Can they [consumers and customers] even find your product?”  As Lecinski writes:

“The conversation is already going on.  Right now, at this moment, people are talking about your product online.  You can’t start it or stop it.  You can choose not to engage, but that’s really like sticking your head in the sand while a competitor jogs by to grab your customers.  Better to welcome the conversation and be part of it yourself.”

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ZMOT - Winning the Zero Moment of Truth is an easy reading, 73-page e-book that every marketer, seller,  businessperson and customer touchpoint team member should read.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Source: Hachette Book Group

Apple has such a wonderful reputation and so much cool marketing that I was shocked to read details about its secretive corporate culture.

It flies in the face about everything I’ve been taught, believe and have seen work during my business career.

Consider these insights from Adam Lashinsky and his new book, Inside Apple:  How America’s Most Admired – and Secretive – Company Really Works.  Lashinky’s book excerpt recently appeared in Fortune.

•  “Yet the link between secrecy and productivity is one way that Apple challenges long-held management truths and the notion of transparency as a corporate virtue.”

•  “The new employees learn that first day of work that they’ve joined a different kind of company than any they’ve worked at before.  Outside, Apple is revered.  Inside, it is cultish, and neophytes are entrusted with only so much information.”

•  “It’s one thing to pressure employees to keep information from falling into the wrong hands.  Apple’s twist is that those wrong hands happen to include one’s own colleagues.  It is, in the words of a former employee, ‘the ultimate need-to-know culture.’”

•  “As with any secret society, trustworthiness is not assumed.  New additions to a group are kept out of the loop for a period of time, at least until they have earned their manager’s trust.”

•  “With silos being the norm at Apple, the surprise is the silos within silos.  ‘There are no open doors at Apple,’ said one former employee.”

•  “Almost nobody describes working at Apple as being fun.  In fact, when asked if Apple is a ‘fun’ place, the responses are remarkably consistent.  ‘People are incredibly passionate about the great stuff they’re working on,’ said one former employee.  ‘There is not a culture of recognizing and celebrating success.  It’s very much about work.’”

Adam Lashinsky shares some additional thoughts in this video:

Of course, every company and organization needs some level of secrecy and information compartmentalization.  And yes, rigidly protecting product launch details from the competition and other outside prying eyes is the right thing to do.  But keeping team members in the dark about what they’re working on and what the ultimate objective is?  And not trying to leverage the power of a team that’s all pulling in the same, known direction?  It just feels wrong to me.  It’s really tough to argue with Apple’s success.  Still, it doesn’t mean this is the way to go for the rest of us!

Coincidentally, right after I read Lashinky’s book excerpt, I read a terrific piece on Mike Krzyzewski in Duke Magazine, written by Bridget Booher.  I’ve read his books and have written about him before, and the contrast between his leadership and teamwork philosophy and Apple’s secrecy was incredibly striking.

You may remember that Coach K missed most of the 1994-1995 season because he resumed coaching without proper rest and rehab after back surgery.  When he returned, he made changes.  Check this out:

“If you had a wheel, with spokes all coming out of the center, that was the way I ran my program,” he says. “I was the center of the wheel, and everything ran though me. When I was knocked out, when the center of the wheel goes, the wheel goes. Quite simply, this is how I changed. I built a new wheel, and I connected this point with that one and that one with this one. Some of them went through me. But you could take me out—are you getting the visual here?— you could take me out, and it would still work. Once I figured that out, it helped me immensely.”

Coach K added:

“It’s too easy to say that I micromanaged or didn’t delegate enough,” says Krzyzewski. “I don’t believe in the word delegate. I believe in the word empower. I was not empowering people before, but once I connected the spokes in a different way, it became everyone’s wheel. That’s why we’re so good now. We’re better than we were then. I’m better. And that will never happen to me again. More important, it will never happen to our program again.”

Everyone’s wheel.  I love it!  That’s the kind of organization I want to be a part of.  That fits with the way I like to manage, lead and coach; and the way I’d like to be led.

What do you think?  Send me your comments and reactions.

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I’m a big fan of leveraging clear direction, teamwork, open collaboration and shared priorities to drive success in an organization.  There’s a time and place for secrets, but secrecy shouldn’t be the hallmark of the organization.  It’s tough to argue with Apple’s success, but I’d rather be on Coach K’s team every day of the week.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Source: J.C. Penney

J.C. Penney’s new CEO, former Apple executive Ron Johnson, boldly proclaimed the retailer’s plan to become “America’s favorite store” in a major presentation to investors yesterday.

I’m not a student of J.C. Penney and who knows if this new strategy will lead to profitable growth.  Retail is TOUGH.  But, after reading the initial news report, and then watching Johnson’s presentation, a few points really stood out to me:

I like the company’s new mindset.

We’re fine with growing old.  We’re not fine with growing stale.

We’re rethinking and reimagining, and if we find that we’ve picked-up any bad habits over the decades, we’re going to leave them far behind.

Ron Johnson, CEO, J. C. Penney Company, Inc., 1/25/2012 Investor Presentation

I like the direct, fact-based, straightforward way Johnson presented the reasons for the change and the plan itself. 

He was comfortable and came across as credible.  See for yourself here.

I like the way he studied about Penney before he actually started the job.

Johnson explained how he signed-up to receive the company’s emails, and then detailed fourteen different types of promotional offers he received.  He later asked and was told there were 590 unique promotions offered in 2011, which resulted in an average of four customer visits.  This, he said, meant that 99% of the customers were ignoring Penney.  All told, Penney spent more than $1 billion on promotions last year, which Jonson described as a “discount to a brand.”  His conclusion:  “It just doesn’t work.”

So, effective February 1st, the company is relaunching, which will let consumers see the results of Penney’s plans to fix three operating areas: price, promotion and personality. I’m particularly intrigued to see how two components play out:

“Re-invent the jcpenney store experience, to include Main Street — the entire store merchandised in a series of 80 to 100 brand shops, rather than the confusing and seemingly endless racks common in department stores today.”

And this: “Town Square — an exciting new place that replaces the traditional retail center core of a department store with a series of services, which customers will enjoy before they buy, while they shop and afterwards.”

You can read about the details on the Penney website and in a good Wall Street Journal article.  And, here’s the new tv ad:

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Be prepared, get your facts straight, size up the challenge, and take your best shot for however you define growth and success.  Sure, it’s a cliché, but don’t be afraid of change.  Just make sure it’s smart change.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

So, I’ll spare you the predictions and Top 10 lists that you can get everywhere else.  Instead, watch this short video and draw out what makes sense for you in your professional and personal life about perseverance, leadership, inspiration, and as my Little League baseball coach Mr. Jim Ake used to preach, The Three Ds:  dedication, desire and determination.

Best wishes for a healthy and terrific 2012.

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Don’t wait until the end of each year to engage in a bit of personal assessment and introspection.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Today’s example:  check out this terrific marketing idea for Brazil’s Olla Condoms.

Although marketing for profit, Olla, similar to the challenges faced by cause and health related communicators, probably needed to overcome difficulties reaching its target and generating action on a sensitive topic.  The idea of receiving a Facebook invite from an unexpected and presumably unwanted child is jarring.  It’s powerful.  And, that’s the whole idea.  Message to Mr. I Don’t Want to be a Father Today:  use an Olla condom, problem solved.

So much for the good news.  It seems that Olla may have violated Facebook policies by creating fake profiles.  If that’s true, then Olla’s marketing went too far, and I don’t condone marketing that violates established regulations or is illegal.  Still, the core idea is wonderful, and too bad they couldn’t have created an execution solution that was just as bold, yet regulation conforming.  Next time.

Headline For Marketers

You want relevance, differentiation and growth? Get great ideas.  Team up with the right people and resources who understand your objectives, and have the capability to help you create powerful ideas that bring your marketing and communications to life.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Source: HubSpot -101 Awesome Marketing Quotes.

A British health organization has taken a super-sexy approach to help solve the deadly serious issue of testicular cancer.

Let’s explore why this is such a great marketing lesson and reminder for all of us.

UK-based Male Cancer Awareness Campaign (MCAC) believes that ”too many men die of prostate, bowel and testicular cancer because they do not know how to detect the symptoms in the early stages, when treatment would be more effective.”

The problem, they say, is that “this ignorance is made worse by the prevailing ‘culture of embarrassment’, that discourages men from discussing and resolving problems related to intimate parts of their body.”  One of their aims is that “no young men between the ages of 16-35 die of testicular cancer in the UK.”

So, MCAC and agency JWT London came up with a brilliant and bold marketing communications idea.  It’s a terrific example of really understanding your communication target, and what it takes to reach that target.  See for yourself (note – adult viewing).

If prompted for a YouTube log-in, click here to watch the video.

There may be those who disagree with MCAC’s approach because they think it’s too sexual and/or because they think it exploits women.  I don’t.  As of today, the video has been viewed 1.7 million times since it’s September 14th launch.  For sure, some of the viewership is driven by word-of-mouth stimulated gawking to see super model Rhian Sugden in provocative display.  Even so, MCAC is still reaching its target.  Finally, consider this:  if MCAC had instead produced a doctor handout pamphlet talking about testicular cancer along with a diagram showing how to do a self-exam, how many men would pay attention to that?

Here’s MCAC’s reaction after the video hit one million views:

“This is an epic success for Male Cancer Awareness Campaign, the UK’s boldest and most daring charity, as it shows that through innovation we can reach the right target audience in order to spread the message that testicular cancer is treatable if caught early!”

The producers of this video have a deep understanding of the target and the challenges to reach that target in a compelling and meaningful way (i.e., get more men to do self exams).  The video is great marketing because it takes that target understanding and solves the problem in a powerfully, effective way.

Headline For Marketers

Regardless of what you’re selling, get in the head of your customer and develop a deep understanding.  Figure out how he/she learns and wants to be informed.  That’s the path to relevant, meaningful engagement and a higher marketing call-to-action success rate.

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.