May 9th, 2008
“Hard wooden chairs don’t do it anymore,” says Bruce MacMillan, who credits Starbucks with “the rise of the casual meeting room,” reports Elaine Glusac in the New York Times (4/30/08). Others point to books such as Dan Pink’s “A Whole New Mind” and Richard Florida’s “Rise of the Creative Class,” but whatever the drivers it’s clear that the old “coffee urn” approach to meetings is giving way to things like “wheat-grass shots on breaks.” Executive coach Leslie Marquard is making a business out of the trend toward these so-called “right-brain meetings,” where “better brainstorming” is encouraged via “comfortable, colorful furnishings and accessories ranging from Slinkys to … Guitar Hero.”
Leslie set up Catalyst Ranch, one such “alternative meeting space in a former sausage factory, near the loop in Chicago.” The only problem is that clients have to come to her, and when she has to facilitate meetings at “endothermic hotel rooms with no windows and natural air.” Fortunately, this appears to be changing. For example, the W Hotels in New York provide Etch A Sketches and other toys in meeting rooms, while the W Seattle offers a ’sensory setup’ for meeting rooms, furnishing aromatherapy candles, stress balls and puzzles, mood music and black notepads with white lead pencils.” Wow.
The Hotel Sax in Chicago meanwhile “has opened irregularly shaped meeting rooms with few right angels, including an oval foyer with a video wall and a room with a curved wall, low armchairs and an electric fireplace. One L-shaped space features a recessed bank of white leather seat pods opposite a water wall.” As for the payoff, Diana Peterson says a “right-brain meeting” worked its magic for her at a recent sales meeting at the Curtis Hotel in Denver, saying the “fun energy” resulted in “an increase in sales of 40 to 50 percent after the conference, versus flatter results from similar events in traditional settings.” ~ Tim Manners, editor
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Posted in Books, Innovation |
May 9th, 2008
Susanne M. Jaeggi has co-authored a paper that says it is possible to train people to increase their brainpower, reports Nicholas Bakalar in The New York Times (4/29/08). Susanne is a postdoctoral fellow in psychology at the University of Michigan who conducted a test showing that so-called “fluid intelligence” — the kind of intelligence considered to be innate and that can’t be taught — can, in fact, be improved upon with practice. Since fluid intelligence is basically the ability to “solve new problems without having any relevant previous experience,” training centers on “working memory — the kind that allows memorization of a telephone number just long enough to dial it.”
According to Susanne and her research team, this works because working memory is “closely related” to fluid intelligence, basically relying “on the same brain circuitry.” So, after measuring their research subjects for fluid intelligence, the researchers “trained each in a complicated memory task, an elaborate variation on Concentration, the child’s card game, in which they memorized simultaneously presented auditory and visual stimuli that had to recall later.” A total of four groups participated for a half-hour “for “8, 12, 17 and 19 days, respectively,” with the level of difficultly continuously adjusted based on each individual’s success rate.
Results were compared with a control group that did not receive the training, to ensure that the test participants weren’t just getting better at taking the test. While the control group did, in fact, improve, the trained groups improved far more. In addition, those who trained longer, improved more — regardless of how weak or strong their fluid intelligence was prior to the training. According to the study (link here) the training helped strengthen the ability to solve new problems, specifically “ignoring irrelevant items, monitoring ongoing performance, managing two tasks simultaneously and connecting related items to one another in space and time.” ~ Tim Manners, editor
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Posted in Science, Consumer Insights |
May 8th, 2008
“Not only hasn’t the internet yet matured, it’s becoming an ever-more high-stakes game,” writes Andy Kessler, author of “How We Got Here,” in the Wall Street Journal (5/6/08). Andy makes this observation in the wake of Microsoft backing off its bid for Yahoo, which he thinks missed the whole point in the first place. He thinks the premise of that deal — “that adding Yahoo’s 20 percent web search market share to Microsoft’s 10 percent meant that it could compete against Google’s 60 percent” — ignored the “four key elements” that will shape the future of the web and whether Microsoft, Google or some other company ultimately dominates that future.
The first of those four elements is “the cloud” — those massive networks of servers sitting in data centers, where Google, flush with cash from its advertising business, dominates. The second element is what Andy calls “the edge,” or the ability to run programs on any type of device, be it a desktop, laptop, cellphone, GPS, digital camera, videogame controller or what have you. Andy sees an advantage to Microsoft here, in part because search increasingly is migrating to mobile devices, and “Microsoft software runs on about 20 percent of smart phones in the U.S.” Microsoft also holds an edge because of its Xbox platform, yet another place where search can happen.
Element number three is “speed” — primarily with respect to search results, but also where things like photo sharing, money management and multi-player games are concerned. Google’s search does lead with speed, says Andy, albeit at the expense of relevant results. The fourth element is “platform,” where the advantage, says Andy, is Microsoft’s. The issue, as he sees it, is that while Google wisely automates its enterprise, it unwisely keeps its platform largely closed to developers. Microsoft, however, has always been about creating a platform for developers, which this time could lead to search across devices, or perhaps game-changing with free search advertising. Yah-who? ~ Tim Manners, editor
Posted in Online, Media, Innovation |
May 7th, 2008
Nick Massari had dreams of becoming a baseball star, but instead finds himself running Nanina’s Gourmet Sauce, a million-dollar pasta-sauce business, reports Glenn Rifkin in the New York Times (5/2/08). Nick found himself at Nanina’s because he had helped start the company as a student in an entrepreneurship class at Monmouth University. The class’s professor, John Buzza, was friends with a local restaurant chef who made a pasta sauce “that customers were always asking for, but he had neither the time nor skills to turn the idea into a business.” So, John turned his friend’s challenge into a class assignment.
“We had no idea how to begin,” says Nick. “But instead of getting lectured on how to do it, we went out and did it.” The 35 students in the class started by organizing into five teams, one each for “sales and marketing, finance information technology, research and development and production.” They created a business plan while also taking “a course in small business management,” and soon succeeded in getting their product on the shelf at a local supermarket. Today, Nania’s Gourmet Sauce is “sold in four major supermarket chains (almost 400 stores) in the region, including Pathmark and Whole Foods.”
The concept of the real world as a classroom for entrepreneurs actually was pioneered by Babson College in the 1970s. Babson actually gives teams of incoming freshmen “$3,000 in seed money … to create a company to sell a real product that will exist for the school year.” Prof. Andrew Zacharakis says every team has at least broken even and any profits are donated to charity. A total of 2,000 schools now have similar programs, and the Kauffman Foundation spends some $50 million a year to encourage more schools to join the fun, especially liberal arts schools. “We think entrepreneurship in business schools is often too narrowly focused,” says Kauffman’s Marjorie Smelstor. ~ Tim Manners, editor
Posted in New Products, Packaged Goods, Retail, Innovation |
May 7th, 2008
The best way to burn new circuits in your brain is to develop some new habits, reports Janet Rae-Dupree in the New York Times (5/4/08). It’s not so much about ending old habits, because that’s just about impossible anyway — “once those ruts of procedure are worn into the hippocampus, they’re there to stay.” It’s more a matter of creating “parallel pathways that can bypass those old roads.” The quickest route, says Dawna Markova, author of “The Open Mind,” is to avoid the tendency to “decide,” because “to decide is to kill off all possibilities but one. A good innovational thinker is always exploring the many other possibilities.”
That’s not so easy, because even though we were “born with the capacity to approach challenges in four primary ways … the brain shuts down half of that capacity” after adolescence, “preserving only those modes of thought that have seemed most valuable during the first decade or so of life.” That means we settle in either as more analytical and procedural or more collaborative and innovative in our thinking. Most of us tend toward the analytical and procedural, because of the educational “emphasis on standardized testing.” In either case, Dawna and her business partner, author M.J. Ryan (”This Year I Will …) say you need to stretch your brain if you want to be more innovative.
This can be as simple as listening to a different radio station, or as challenging as listening to someone who disagrees with you. “Whenever we initiate change, even a positive one, we activate fear in our emotional brain, says M.J. ” If the fear is big enough, the fight-or-flight response will go off and we’ll run from what we’re trying to do.” She suggests the “Japanese technique called kaizen, which calls for tiny, continuous improvements,” because its incrementalism avoids “fight or flight” and keeps “us in the thinking brain.” Meanwhile, researchers have also found that those who “do something different every day” tend to lose and keep off weight. New habits can also decrease risk of dementia, since an active brain is less likely to atrophy. ~ Tim Manners, editor
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Posted in Books, Science, Innovation |
May 6th, 2008
“The question we constantly ask ourselves is how to hit the price point that even Wal-Mart is not hitting,” says Steve Shore, co-founder of Steve & Barry’s, in a New York Times piece by Eric Wilson (5/1/08). The question everybody else constantly asks Steve and Barry is, how the heck to do you sell dresses for $8.98 when the cheapest dress on the Wal-Mart website is $14.92? Not only that, but how is it that the dress is of good design, decent quality and carries the imprimatur of actress Sara Jessica Parker? Steve and Barry say that the answer is not that they make their garments in sweat shops — in fact, they insist that they do not.
Instead, they point to the fact that Steve & Barry’s tend to open stores in “underperforming malls, where the owners are more likely to negotiate rents and offer other incentives; by building its own bare-bones displays; by maintaining only a small public relations office in Manhattan; and by manufacturing in countries like China, India, Madagascar and more than 20 others, including the United States.” But no sweatshops. Company execs also stay at discount hotels and work out of modest offices where some of the furniture was salvaged from Barry’s parents’ basement. Most important, though, is their ability to attract big-name stars to work with them.
It’s not just Sara Jessica Parker, who designed, and wears, an $8.98 dress sold exclusively at Steve & Barry’s (images here). It’s also Venus Williams, Amanda Bynes, and perhaps most famously, Stephan Marbury, whose Starbury footwear is also sold at Steve & Barry’s for just $8.98 a pair. As Sara Jessica explains: “I had never heard of Steve & Barry’s, and I didn’t know anyone who had ever heard of them … But I loved their manifesto and the idea of the marketization of fashion.” She also points out that, these days, people like to brag about how little they paid. Barry sums it up quite succinctly: “When you look at clothing now,” he says, “price is not the arbiter of what is good. It’s the clothes themselves.” ~ Tim Manners, editor
Posted in Design, Fashion, Celebrities, Consumer Insights, Retail, Shopping, Case Studies |
May 6th, 2008
Target wants to show it is eco-friendly while Barneys wants to show it supports young designers, so both retailers are collaborating to introduce the “Rogan for Target” line, reports Ann Zimmerman in the Wall Street Journal (5/5/08). “Rogan” is Rogan Gregory, “a designer at the forefront of the eco-fashion movement,” who “uses 100 percent certified organic cotton and other natural fibers … in his collections that are typically sold at Barneys and Bloomingdale’s.” Under the Target-Barneys collaboration, this new line of 60 Rogan pieces (images here) will go on sale at Barney’s for a few days before taking up residence in Target’s stores for about six weeks.
Julie Gilhart, a Barney’s fashion director, says the collaboration with Target is partly because Barney’s likes to do what’s “new and novel” and also to support Target’s efforts to lend support to new designers. “A lot of up-and-coming designers live hand to mouth, especially when they start out, and this gives them a project that helps them fund their own business,” she says. Target, meanwhile, positions the Barneys deal as part of its “Go International” program, which features a line of moderately priced apparel from cutting-edge designers” on a short-term basis. One thing’s for sure, the Target items sell for a lot less than what Rogan normally sells for at Barneys.
Where Rogan’s Loomstate line at Barneys features T-shirts for $68 and hoodies at $235, the Target items range from $15 to $45. Rogan says it’s Target’s buying power that enables these low prices. “Target leveraged its volume to get what it wanted,” he says. He also says he used “dyamic fabrics” as well as “less hardware, sophisticated construction and embellishments.” Some question whether such fashions are little more than “greenwashing,” however. “For example, fast-growing bamboo is touted as an eco-friendly material,” but the process of converting bamboo into fabric, “takes a significant amount of energy and chemicals.” In any case, the unusual Target-Barneys alliance will no doubt generate plenty of energy in the form of buzz. ~ Tim Manners, editor
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Posted in Women, Fashion, Environment, Shopping, Retail |
May 5th, 2008
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The ultimate shopper insight is that sales and marketing need to think as one. An exclusive Q&A interview with Lisa Klauser of Unilever by Tim Manners.
(pdf) or (text)
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Posted in THE HUB, Packaged Goods, Strategies, Consumer Insights, Shopping, Marketing Disciplines, Companies, Marketing Organization |
May 5th, 2008
The best kind of customer service is not having to provide customer service, write Bill Price and David Jaffe in “The Best Service Is No Service,” as reviewed by David A. Price in The Wall Street Journal (4/25/08). Bill Price should know because he used to be a senior-level customer-service executive at Amazon.com, which is of course considered by many to be a paragon of customer service. Amazon’s focus is not only on making sure that customer service is handled as well as possible, but more important to try to eliminate the need for it in the first place. Amazon uses a metric it calls “CPX — contracts per order, contacts per unit shipped, contacts per customer.”
The idea is to get the number of contacts as low as possible meaning that customers need as little support as possible. This is not the way most companies look at it. At most companies, the focus is on making customer service as efficient as possible, which roughly translates into spending as little time on it as possible on it. The authors write: “The standard across most service operations is to report and track how quickly things were done … not how well they were done or how often, or why they needed to be done at all.” Companies might measure how many calls were picked up within three rings or how many emails were replied to within 24 hours, but not whether customer satisfaction was achieved.
Sometimes such measures can do more harm than good: “At one company where managers imposed a target ‘average handle time’ (call time) of 12 minutes, phone calls miraculously shortened to just under 12 minutes. As the 12-minute mark approached, agents simply said whatever it took to get the caller off the phone. The call center at an other company hit on the idea of reducing the number of phone lines so that the excess callers simply got a busy signal — and went unanswered.” Such metrics help explain why “three-quarters of chief executives in an Accenture study believed their firms provided ‘above average’ service. Yet almost 60 percent of those same firms’ customers were upset with their most recent service experience.” ~ Tim Manners, editor
Posted in CRM, Shopping, Retail, Media, Loyalty Marketing |