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Archive for May, 2010

Pop quiz: You own or manage a restaurant. A hotel. A coffee shop. A specialty goods store. A hot dog stand. A bank. A movie theater. A shoe store. A gym. A bodega. A hair salon. A sushi bar. A pub. A public park. A swimming pool. A museum. An art gallery. A city. Do you know who the mayor of your business is?

If you don’t, find out today. Right now. Here’s why: It could help your business grow pretty quickly if you play your cards right. More on that in a minute. First, here’s how to find out who has claimed the title of mayor on Foursquare: (Huh? fourwhat? Hang on. We’ll get to that too.)

The How:

Step 1: Go to www.foursquare.com

Step 2: In the search box (top right) enter your business name.

Step 3: When your business information pops up, look to the right of the screen. You will see an icon labeled “mayor”. That’s who the mayor is.

The Now What:

Find out who they are, and you give them the royal treatment next time they come into your store. Let them know you’re paying attention to a) Foursquare, b) whom is taking the time to check in every time they come into your place of business, and c) who is sharing that information (that recommendation) with their friends on Foursquare, Twitter and Facebook.

Think about giving them a discount or a gift while you’re at it. Set up a “mayor parking” spot outside. Treat them like a VIP inside the store. Address them as “Mister Mayor” or “Your Grace,” when they walk in. It’s up to you. Have fun with it. Give them more reasons to like you. It never hurts to reward kindness with kindness, and remember that it is supposed to be fun and rewarding.

The Why:

If you aren’t familiar with Foursquare yet, here it is in a paragraph: It’s a game played on mobile devices. People “check in” to businesses and other locations, and try to accumulate points. In some instances, they win much coveted “badges” (see some examples below).

In other instances, if they are the most frequent visitor of a location (like your store), they are crowned “mayor” of that location. The game is free, works on a variety of mobile platforms, and players have the option to share their check-ins with their network of family and friends on Foursquare, Twitter and Facebook. It’s a silly game, sure, but it is powerful as well. Here’s why:

1. Frequency – Because checking-in is a game, it is fun. That, in and of itself, is reward enough. Mayorships and badges are also rewards for activity on Foursquare. What it means is this: Foursquare gives people an incentive to visit your store more often, just so they can check in. Especially if you are running a promotion aimed at your store’s mayor. As a business, you can thus easily use Foursquare to increase the frequency of visits to your store(s). That equates to more foot traffic, more mindshare, and potentially more sales. (While they’re in your store, they’ll probably buy something.)

2. Reach – In case you missed it earlier, when someone “checks in” to your location, they broadcast that check-in to their various digital networks. Right now, that is mostly Foursquare itself, Twitter and Facebook. This will probably grow over time. But consider that the average american has what… over 200+ “friends” on Facebook? Think about the power of having a single customer broadcast that they are in your restaurant, in your hair salon, in your pub to 200+ of their friends every time they come in. Now multiply that by ten customers. Now multiply that by 100 customers.

Though not technically “active” word of mouth, Foursquare check-ins are still de-facto endorsement of your business. In other words, it isn’t just a question of exposure. A check-in is an affirmation of endorsement. It might as well say “I am here, and I am proud to tell you all that I am doing business here. Come do the same.” That’s the context of a check-in.

Every time one of your customers checks-in and broadcasts that they are doing business with you, they potentially trigger a visit in an average of 200 other potential customers. (Either existing customers or potential customers.)

3. Yield – Of the three, this one is probably the toughest to achieve, but as a measure of loyalty, yield (average purchase amount) can be impacted by foursquare activity. As frequency of visits increases and loyalty follows suit, it is likely that a portion of your customers will escalate their purchase amounts as well. Loyalty can lead to a higher percentage of wallet share, not just through buy rates (frequency) but also higher price-point purchases.

A word on escalation: Take the example of a bike shop. A casual customer may come in once a month and buy some energy bars, a bike jersey and some socks. As this customer is developed into a regular, they start purchasing all of their energy bars from you instead of buying them from several different places. They may also start jonesing for that new pair of cycling shoes and that new helmet they will soon rationalize they need to replace their “old” ones with. If you treat them well and understand their needs, this escalation may lead to a higher dollar purchase like a race wheel upgrade, a carbon-fiber set of handlebars upgrade, a full bike tune-up, or even a brand new bike to start off the new season in style.

Result: In six months to a year, you could potentially turn a casual customer who only bought low-hanging-fruit items in your store to a loyal customer with a habit of dropping large amounts of cash on premium upgrades with you, instead of blowing them on something else.

Note: You cannot escalate yield if you do not have a relationship with your customer. There is no shortcut here. You have to get to know them. You have to become part of their world. This is not something you can do from a corporate office, or from the back of the store. Someone has to interact with them on a human level – both online and offline.

More thoughts on how to leverage Foursquare:

How your business can use Foursquare is up to you. Use your imagination. Try different things. Be clever. Have fun with it. Perhaps you can work with Foursquare to create badges for your business, the way that Bravo, Starbucks, SxSW, Marc Jacobs and several cities (San Francisco, New York, Brooklyn and Chicago) already have. Here is Starbucks’ very own Barista badge. To obtain it, players only need check in at 5 different Starbucks locations:

Imagine the same thing for your business, or banding with retailers in your area to create a badge players could unlock by visiting 5 of your combined locations. You could work with an organization or with a city even, to help promote your business through Foursquare. You don’t have to do it all yourself.

Perhaps you can also create promotions around Foursquare activity, like flashmobs (using your business and a particular sales event to help customers achieve both all-too elusive swarm badges (50 people checking in together and 250 people checking in together.)

Another fun idea: Procure some Foursquare Merit Badges and ceremoniously award them to customers who acquired virtual badges online (see below).

Whatever you choose to do, start at the beginning: Find out who the mayor of your business is, acknowledge that status, and reward it with warmth and gratitude, if not with product.  Next: Create an account and get rolling. It’s your business. Take charge and participate. Welcome to a whole new world of marketing fun. If you’re lucky, you will beat your competitors to it. (Never underestimate first-mover advantage, especially in the age of twitter & facebook real-time word-of-mouth.)

Footnote: I spoke to two retailers yesterday who had never heard of foursquare. One didn’t know that dozens of customers were already checking into their store regularly, and I added the other’s venue because there wasn’t one yet. Guess what: One knows who the mayor of their business is today, and he has a plan now. The other will know as soon as someone becomes the mayor, and is already working on some promotions. We will revisit these two businesses in a few months to see how they fare.

Also check out Gowalla.com while you’re at it. Very much the same thing, and it too is growing.

Additional reading:

Via Mark Van Baale (@markvanbaale on twitter) – “Foursquare sees another big Domino fall

And this great piece via Mashable on Foursquare’s business analytics dashboard.

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Continuing the series started a few weeks ago with Bette Davis, here are some lessons that a bright dead personality could teach us were they alive today. This week: Gaius Julius Caesar – a guy so successful in his time that his last name became synonymous with “Emperor”. (Point of note: the term “Czar” is a contraction of “Caesar.”)

Here what Julius Caesar might talk about if he could speak at #Likeminds, #Ungeeked and #SxSW today:

1. Six inches of point beats two feet of blade.

The Roman legions conquered most of the known world using javelins and the standard issue short-sword called a Gladius. Contrary to what you may have seen in the movies, the gladius was a stabbing weapon, not a hacking/slicing weapon. Compared to long swords and battle axes wielded by barbarian hordes, the gladius seemed a child’s weapon: Short and dagger-like, not particularly good at slicing. Yet its six inches of stabbing point beat its longer, scarier counterparts in battle. Why? Because the Roman legions were trained to use it properly.

What the Roman legions knew (and the barbarian hordes – including my own people, the Gauls didn’t) is that flailing wildly with long, heavy weapons forces you to commit too much to each attack. Swinging a heavy weapon opens up your guard just long enough for a legionnaire to thrust his gladius from behind a wall of shields and take you down. Not to mention the energy efficiency of a quick thrust vs. a wide swing. Legions used less energy in battle than their ill-trained counterparts, which allowed them to fight longer, thus giving them the ability to win against 2:1 and sometimes 3:1 odds.

Sometimes, the difference between effectiveness and failure lies in how expertly a tool is used. Bigger and better doesn’t guarantee success. Fluency and expertise in the use of very specific tools, however, can turn an apparent disadvantage into a win. A well trained operator with a simple  tool can be much more effective than a less well trained operator with an expensive, more impressive tool. Never take training, focus and discipline for granted.

2. People want to be led, not controlled.

While Julius Caesar was in command of his legions, he was hailed as a hero. His men would have followed him anywhere (and did). Why? Because he led them to victory and glory.

When he returned to Rome after defeating his rival Pompey, Caesar tried to rule Rome as a dictator. That didn’t work so well. In shifting from leadership to absolute control, he stepped over a line that the people of Rome – and even his closest allies – refused to cross with him. The result: Julius Caesar was assassinated by a group of senators bent on making an example of his death to any future would-be dictators. The lesson: Leadership = good. Control = bad.

Leadership implies direction. It promises a better tomorrow. It engages and fascinates and inspires. Control, however, is a crushing weight on liberty that no man ever accepts freely. Control breeds resentment and hatred. It fosters discord and revolution. Be aware of the difference and how your leadership/management style is perceived by the people under your charge. Aim to lead, never to control.

3. “I came, I saw, I conquered.”

A) Everyone loves a winner. The ingredients of leadership may be a brew of courage, vision and intelligence, but its flavor and appeal are the wins. It isn’t enough to be a leader. You have to prove it again and again by pulling off some key victories. Winning gives you something to talk about. Not winning means you should talk less and work more.

B) Brevity goes hand in hand with clarity. It doesn’t get much clearer than “I came, I saw, I conquered.” Even in twitterland, that leaves you more than enough room to add a hyperlink to a PDF that elaborates on such a succinct report.

4. “Experience is the teacher of all things.”

Books are nice. They’re a start. But at some point, you have to DO the thing. You have to build the business. Grow the business. Win market share. Outpace your competitors. Recruit the best minds. Create the culture-changing products. Fix the accelerator glitch. Stop the giant underwater oil leak. Rejuvenate your brand. Redefine your market. This stuff isn’t theoretical. You have to roll up your sleeves and learn the hard way what works and what doesn’t.

Julius Caesar learned soldiering with the rank and file of the Roman legions. He fought in the front lines, shoulder to shoulder with legionnaires. He slept with them, ate with them, drank with them, marched with them and bled with them. Had he not spent years in the trenches doing the work himself, he would not have been the military leader he became. “Experience is the teacher of all things.”

The subtleties of experience trump the best theoretical education in the world. Books will only get you started. You have to go the other 90% of the way through hard work. There’s just no getting around it. If you can’t learn how to be a race car driver by reading books, you certainly can’t learn how to lead an army of run a business that way either.

As for Social Media “certifications,” forget about it. Training (even what I can teach you at Red Chair events) will only get you so far. The only way to get good at something is to do it, and do it and do it until it becomes second-nature. Experience trumps instruction.

Say it with me, out loud so the whole class can hear you: There are no shortcuts.

5. “Cowards die many times before their actual deaths.”

Be bold. Take chances. Don’t hide. Every time you don’t speak up in a meeting, every time you let some jerk at the office take credit for your work, every time you hold off on releasing a product or green-lighting a bold campaign, you are building your house with faulty, weakened bricks.

Winning, being successful, beating the competition isn’t achieved by playing defensively. Every win is a succession of decisions that imply risk and take courage. Likewise, every failure is a succession of decisions marred by fear and cowardice. Learn this.

The same rules apply to your online presence: If you want to find your voice in the blogosphere and on the twitternets, have the courage of your convictions. Speak your mind, even if what you have to say may earn you a few frowns. It is easy to feel pressured by some well-followed “personalities” to keep your mouth shut or not speak against the grain. Don’t let yourself be intimidated. Your opinion is as valuable as theirs, and your point of view just as worthy of expression. Being blackballed by a handful of self-important bloggers isn’t the end of the world. Better to know who your friends and enemies are than to live in fear of retaliation. Speak your mind. Find strength in courage.

Build your house, one courageous decision and action at a time.

6. “I had rather be first in a village than second at Rome.

Some folks are just happy to be there. Others are okay with being top 5. Others yet are content to be #2. Leaders don’t fit into any of these categories. They want to be #1. It’s a personality trait, nothing more. It can’t be faked or learned. You’re either this type of person or you aren’t. Bill Gates wasn’t interested in being #20, so he started Microsoft. Steve Jobs: Same story. Sir Richard Branson: idem. The great leaders of history, whether in antiquity or in our time all share a similar personality trait: #2 is not an option.

Same thing with companies and brands: Would you rather be #1 in a niche market or #3 in a broad market? Which holds the greatest value? Ask Apple where they went with that. Ask Microsoft where they went with it. It isn’t a question of which is the better choice. The question is more personal: Which is the better choice for you?

Note: Incidentally, in the world of Social Media platforms, there is no #2. You’re either #1 in your category, or you are on your way out. In this world, velocity and scale win.

7. “It is not these well-fed long-haired men that I fear, but the pale and the hungry-looking.”

The competition is the hungry kid with an idea, ambition and nothing to lose. Thirty years ago, they were Steve Jobs and Bill Gates. Five years ago, they were Mark Zuckerberg, Jack Dorsey, Biz Stone and Evan Williams. Who’s next? Who will crush Big Advertising? Big Web? Big Print? Big Software? Big Consulting? Big Energy?

If you’re the industry leader, don’t look to your biggest competitors. Instead, look to the kids with the brains, the vision and the huevos to redefine your category and make you obsolete. Likewise, if you’re one of those kids, don’t let the big dogs intimidate you. If you have a better idea, fight for it. Make it happen. Don’t settle for what’s comfortable. Fight. The old guy playing golf with his CEO buddies every other day, he’s given up.

In the long run, my money is always on the hungry young wolf, not the fat one taking a nap in the sun.

8. “It is better to create than to learn! Creating is the essence of life.”

It is better to be a pioneer than a student. Go where no one has gone. Until Julius Caesar marched into Gaul and made it a Roman territory, it was a wild and savage land Rome feared would never be tamed. He had a vision of what could be, and he made that vision a reality.

Henry Ford had a vision. So did Walt Disney. So did the United States of America’s Founding Fathers. So did Steve Jobs, Howard Schultz (yes, I know, he wasn’t the original founder, but he was the one who made Starbucks “Starbucks”), Bill Bowerman, and Branson. Every brand of note, from the Roman Republic to The Beatles focused on creating and building, not just on learning. Learn all you want, but then do something with what you’ve learned. Contribute. Create something of value. Even if it is just a #chat, an idea, a YouTube video, a blog post, a presentation or an app. Create something. Anything.

9. Ask everything of your people, but reward them like kings.

The men who served in Julius Caesar’s legions and survived to the end retired wealthy. Never forget whose work really made you successful. Your employees, your friends, your business partners, your customers… Everyone who contributed to your success deserves more reward than you can afford. never lose sight of that. Executives who treat lowly employees like cattle are epitomes of stupidity and arrogance. In sharp contrast, executives who treat every employee with respect and gratitude are all win in my book. Strive to be the latter, and don’t skimp on rewards. Look a little further than the proverbial gold watch when trying to reward loyalty. Rise above institutional apathy. Yes you can.

Same with twitter followers and blog readers. If they buy your book, if they come see you speak, if they help you in any way, take the time to do something for them. Strive to give back more than you receive.

10. “The die is cast.”

Make decisions. Live with those decisions. It’s that simple. Once you’ve committed yourself and your business to a course of action, to a play, to a tactical path, you’re committed. The time for doubt or indecision is gone. Stay the course and brave the storm. It’s all you can do.

Leadership isn’t for everybody. It takes nerves of steel, sometimes. It’s hard on the soul.

When you fail: Accept responsibility for the failure, learn from it, dust yourself off, and try again. No need to dwell on what you can’t change. Focus on what you can change.

When you succeed: Reward your people and give them all the credit. Don’t stop and rest, though. When you’re winning is when you should keep advancing. Winning is100%  about momentum. Never forget that.

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