• About

LIVEdigitally

Category Archives: Marketing

The "right" way to rev gadgets and pricing

Posted on September 6, 2007 by Jeremy Toeman

In case you missed it, Apple announced they were discontinuing one iPhone and dropping the price on the second by 33%, all a mere 68 days after launch. Steve Jobs, the absolute master at generating hype, frenzy, and fandom in the consumer technology industry, dismissed this as “that’s technology.” Apparently a few people disagree (three highlights here here and here). I am one of these people.

In “the old days” all the way back in the 80s and even 90s, most consumer electronics products were cycled about once per year. Much like the auto industry, you knew full well if you bought a 100W Sony receiver with Dolby surround, the next year you’d see a 110W Sony receiver with Dolby Digital. That’s technology.

Jump ahead to today. Most consumer electronics devices still get cycled about once a year-ish, and the updates happen at different, but predictable times of the year. Flat panel displays tend to come out over the course of the Summer and early Fall, etc. Computers and mobile phones, on the other hand, are cycled fairly continuously, but again, predictable patterns exist, both in timing and pricing.

In the past two weeks, I now have two examples of companies (Apple now, Canon previously) ignoring any patterns, and simply “walk all over” their existing customers in the sake of bringing new things to market or dropping prices. These are the kinds of habits that create a chink in the armor of customer loyalty. And these chinks are exactly the moments that create opportunities for competitors.

So my advice to these manufacturers, and any others, is to think very carefully about your existing customers and how they will perceive your glorious news. If you bought an iPod nano last Xmas, you probably aren’t too upset about a new one – it’s been a while. If you bought one last month, my hunch is you are pissed. You might not do anything about it today, but the next time you are looking into buying a product, the competition might just have a chance to attract your attention.

I’m not advocating 3-month leaks on new products with pricing and tech specs revealed far too soon. I get that you have inventory that needs sell-off. But establish some patterns, we’ll learn and follow them. New iPod once a year? Great, no problem. iPhone discount just before the Holidays? Makes sense, we’re expecting it. Need to rush a new model to market to stay competitive? Excellent – set up an upgrade program for anyone who has made a purchase in the past 30 days.

The bottom line is easy: treat your existing customers with the respect and gratitude they deserve – they are the ones most responsible for delivering you your next batch of customers.

UPDATE: To the masses, Steve just did another wunderboy move with fresh kool-aid.  Still not drinkable where I come from, but something is better than nothing, right?

Posted in Gadgets, Marketing | 1 Comment |

Open CEOs

Posted on August 10, 2007 by Jeremy Toeman

Back in my Sling days, one of the greatest fears I had in doing my job was watching or reading interviews with the CEO, Blake Krikorian. See, Blake’s one of those guys that is really fun to talk to, on just about any topic (other than when you screw up and miss a deadline or build a goofy feature into your product, of course), and really loves engaging with whomever he’s talking with. He’s also a super-enthusiastic guy when it comes to Sling Media – which is apparent in any video you may watch with him in it (even if he’s in a Japanese restroom).

So why was this a “fear”? Well, we we’d never be 100% sure as to what exactly Blake would talk about on any given interview. So we knew it would be good, and we knew it would be fun, but we never quite knew what would come out of it. At the end of the day, it’s clearly a “high class problem” as a friend of mine says – because the results were always good ones. Here’s Blake on Om’s Revision3 show.

One of the reasons Sling is so well-liked as a company is that Blake promotes a very open, friendly communication style. Sure the company has plans and initiatives that can’t always be disclosed in advance, but the general tone and demeanor is welcoming, inviting, and open.

These same principles are driving our marketing efforts for Bug Labs. Peter Semmelhack, the CEO, is keenly interested in not just having open source technology, but in what I am calling open marketing.  Next week I’ll be in the NY office for a couple of days, and even though we are a ways away from launching the product, we’ve blocked off an evening to have a few beverages with anyone who wants to come by (I’ve even made a Facebook event). No RSVP list needed, no exclusive invite for the tech-elite or media. Whether it’s a curious engineering student (of age, of course!) or someone with a vision of some amazing gadget, we want to meet them, and just chat.

Some of my favorite blogs to read are from company CEOs, ranging from Jonathan Schwartz to Steve Jobs. My advice to any company, whether small startup to huge megakeiretsu, is to have some form of open, transparent communication. You don’t have to reveal every single little plan or secret strategy, but being “out there” and “real” will help your company through good times and bad.

As both of my frequent readers know, I’m completely fed up and frustrated with Sony, and because they are such a closed, unapproachable company, it massively amplifies my frustrations. If the company had more of a “face”, I’m sure I’d still be annoyed, but in a less loathsome manner.

We are in a very interesting transition time when it comes to marketing technology products, and I firmly believe openness and transparency are essential.

Posted in Marketing | 2 Comments |

Bug Labs – The West Side Story

Posted on July 31, 2007 by Jeremy Toeman

There are times in life where work feels closer to a hobby than “a job” – doubly so when a company you work with makes products that tie in to people’s hobbies. As (apparently) more than a few of my colleagues know, I’ve been working with “some cool gadgety startup” since the Winter, and now I can finally talk a little bit about them. The company is called Bug Labs, and it is producing an open-source hardware and software platform for building, well, gadgets. And not just gadgets like the conventional ones we think of and see every time we walk into a Best Buy, more like the gadgets that couldn’t possibly make it to a retail store shelf.

I’ve spent about 10 years designing, building, and marketing “convergence” devices. I’ve helped companies big and small attempt to bring them to market, and I’ve watched others try to do the same. With the exception of the Slingbox, all performed poorly on the market. But the reason for this is mostly due to the definition of market success. In 2000 or 2002 or even 2006, the “digital home” market was a small one (and in many ways still is today). So when I built a device with a Pioneer or an HP, and it sells by the thousands or tens of thousands, it’s a failure. These types of companies spend no less than six figures (and typically seven) on product development, and it’s typically much more than that (not even including marketing budgets).

Bug Labs’ platform, on the other hand, enables anyone to configure a device for a niche market, whether its 1, 1000, or 10,000, and be a market success. The company is effectively disintermediating the entire consumer electronics design, manufacturing, and retail process. By taking down these massive barriers to entry, an engineer (or entrepreneur) can purchase hardware from Bug Labs, build software for it, and create a new market for the configuration of their choosing.

Peter Semmelhack, the company’s founder and CEO, blogged today calling the product “Legos meets Web services & APIs”, a phrase I think is very appropriate. Most hardware kits contain pieces as low level as transistors, chips, and resistors (oh my!) which even with drivers and SDKs still require a lot of knowledge to work with. If you think about a Lego block, it’s a basic module that you inherently know how to use. This is the right analogy for Bug modules, they are pieces that make sense to any programmer. I’d say I’m a well-below average coder, but can still hack well enough to hook up Facebook and WordPress for example. With the Bug platform, I probably couldn’t make the best gadget, but at least I’d be able to give it a shot. That’s the hobby I enjoy.

Last night’s dinner with Peter, Dave Winer, Robert Scoble, Ryan Block, and Jerry Michalski was the first time we had the chance to talk openly about the company. It wasn’t “the launch” and there’s no “official press release” available. Instead, there’s a conversation, and a blog post with an early greeting (yes Zoli & Henry, we will have product info out soon). One of the key goals of the company is to embrace numerous communities, including open source, digital divide, and online technologists. While we’ll do some traditional marketing activities such as a press tour, you’ll also see us on college campuses, at XYZ-Camps, and doing other very “accessible” and inclusive activities.

I’ll be handling the outreach for the company, and while we still have a way to go until the Web site and products are available, I encourage anyone interested in being involved to get in touch, either here through a comment, by email, or even by IM. Looking forward to the next steps!

Update: wanted to share some of the thoughts from some of the individual VCs whose firms invested in Bug Labs (Brad Feld, Bijan Sabet, and Fred Wilson)

Posted in Gadgets, Marketing | 3 Comments |

Conference Tips for Startups: When to go to conferences

Posted on July 30, 2007 by Jeremy Toeman

Just read a wonderful post on how to pick conferences to attend and what you should do when you get there. I’m going to add my $0.02, but change the tack toward how to decide when you should take your team of 3-30 to a conference. In my personal opinion (which is redundant to say since this is my blog), most startups participate in conferences prematurely. To be clear, by “participate” I mean take an active, notable role – speak, sponsor, demo, etc.

I’m going to make the statement here that this probably won’t apply if you are uber-famous or have raised a billion dollars to foolishly sell groceries online 5 years prematurely. My recommendations are based on “the average startup” and probably relate more to consumer-focused ventures, I am not much of an enterprise services kind of guy.

“Early Development” aka “I have a dream”: If you are in this super-early phase of a company, the only things you want to do with a conference is attend, learn&listen, and network. Unless you are a “known entity” in your respective tech community, or unless you are trying to pull some uber-stealth-buzz-marketing move (proceed with caution), there’s virtually nothing to gain by being a sponsor or panelist. A good stealthy company should be trying to fly under the radar as much as possible.

“Basic Demo” aka “Stealth Mode”: OK, the engineers (or possibly just you) made something work, it’s a good proof of concept but probably pretty ugly. Your friends think it’s a sure thing, the next Google in fact. My advice to you – stay stealthy right now. Most of your friends won’t tell you the haircut isn’t so great, but you should probably let it grow in a little before getting out in front of too many strangers.

“Need Funding” aka “Wookin Pa Nub”: Let’s assume that by looking for funding you’ve got a nice demo (or powerpoint) and you are comfortable with some press happening should the occasion arise. At this stage, I’d definitely pick out conferences that have decent VC attendance (easy tip: look for ones with VCs as sponsors) and try to get on a panel. I’d consider doing a Demo/Under The Radar/TC20-style event, but probably recommend avoiding spending too much (anything over 5 figures) as you’re effectively rolling the dice on an extreme crapshoot.

“Launching Soon” aka “Tummy Full O Butterflies”: So now you’re in some kind of private beta test, almost ready to show the world. People, this is your time to shine. Get out there, and get the buzz going. Again, I’d caution against spending too much money, but I’d probably have people in your team tracking all of Scoble’s favorite events and sending one or more to as many as possible. Get your message out there.

“Launch” aka “Launch”: Now is where my advice will take a bit of a controversial turn. I’m going to have to divide you up into different companies based on the interestingness of your company. This is tricky, since everyone likes to think they have a super-duper interesting company. Unfortunately, this is not true, and the more sober, koolaid-free look at yourself you can make, the better you’ll do (in general).

  • Extremely Interesting: You sure? Okay then – my advice to you – do not launch at a conference unless it is either the D: All Things Digital event or a mega-trade-show like CES or NAB. Why? You have so little to gain, and so much to lose. If you are super-interesting, then all you are doing is creating an environment at which you are more likely to fail than succeed. Demoing in 6 minutes in front of a wide group instead of taking 20 minutes one-on-one just doesn’t compare. And if you really are that interesting, all you need is someone with a half-decent rolodex and good interpersonal skills to set up all the meetings you can use. Everybody wants a hot story, why shoot all your ammo at once when you can spread it out at your leisure?
  • Somewhat Interesting: This is, realistically, most companies. If you’ve got something decent-to-good, but not over-the-top wow, and not a snoozefest, then I’d recommend leveraging an event that has a lot of press congregated together. The caveat is this: you run the risk of using up all your marketing karma in one shot, and missing the mark a little. A bad demo or someone else there with a killer story, and you are instantly below the fold on Techmeme. Proceed, but like you would in any good war, do as much recon as you can beforehand!
  • Not-so-interesting: First of all, my applause for being humble enough to read this. There’s plenty of great startups with great technology that just aren’t all that exciting, but still viable to become profitable or get acquired. My basic advice to you is to avoid any show-and-tell scenarios, and get on as many panels as you can. You want to create perception of knowledge and expertise, but don’t want some random group of “judges” who don’t quite get it barking at you for having a yawner demo.

“Post-Launch” aka “We’re out there, and we’re loving it!”: At this point, there’s no clear-cut answer. I tend to focus on analyzing attendee and press lists, and seeing how an event fills a gap in my current programs. Also, there’s a certain amount of a pulse you want to keep going – staying visible and keeping momentum up is important. That said, try not to be that company that attends, sponsors, and demos at every single event in a season – a little good judgment is not only cheaper, but more impactful. It shows you put a little thought behind the money, not just money behind the money.

Hope this is helpful!

Posted in Marketing | Leave a comment |

Analyst Misleading People on iPhone switching

Posted on July 13, 2007 by Jeremy Toeman

Saw this headline “The iPhone Made People Switch To AT&T” then read this article “About 25 percent of iPhone buyers are ‘switchers’ to AT&T“. Here’s a quote:

“We find these numbers impressive, showing that a fair amount of customers are willing to pay high early cancellation fees (~$125-$200) to get out of their existing service contracts for an iPhone,” analyst Shaw Wu wrote in the report.

Now, Mr Wu’s job is to get people to buy Apple shares until it hits the price target he’s set ($165). That is what he is paid to do. So writing a comment like that probably makes sense, again, given his job.

Let’s establish a couple of baselines here, shall we?

  1. Most people who bought an iPhone in week one were unlikely to have “saved up for it” or put it on layaway. A $500 phone is bought by those with enough financial resources to make it a non-decision.
  2. Most people who bought it in week one had to have it. Whether they are “early adopters” or just wanted to be part of the moment in history (and it most certainly was one), it was an entirely deliberate act.

If you accept those truths, then is saying “oh, and about 25% had to spend an extra $200” a big deal? No, it is not. In fact, it’s fairly obvious. To this segment, the act of switching carriers was no bigger than the batch of people who did it to get the first Razr.

This is NOT indicative of the masses, and Mr Wu’s claim of how he “expects iPhone to bring smart phone technology into the mainstream” is another piece of manipulation I find frustrating. There are over 100 MILLION smartphones in use today.

It’s fairly clear to just about everyone right now that the iPhone is exciting, and is a great sign of the power of Apple’s brand as well as what happens when you make good products – people want them. For those who’ve misread my previous posts, I absolutely agree it’s an impressive device, just not the one I want (although my terrible experience with my Sony Vaio VGN-SZ460N is certainly making me open to buying a Macbook these days).

I’ll make two predictions about the iPhone market moving forward:

ONE: If the current rate of switching carriers by breaking contract is 25%, it’ll be less than half of that by the end of the year. People may switch out of contract, but I think the massive wave of this part is done.

TWO: Everybody falls into one of these three categories:

  1. Owns an Iphone
  2. Doesn’t own one, but has already decided they will buy one, are just waiting for some trigger factor (money, end of contract, seeing a friend use it, etc)
  3. Doesn’t own one, but has already decided they will not buy one, for whatever reasons.

I don’t think anyone else is really on the fence anymore, and I doubt that a lot of people who have already decided against it will switch. I was wrong about my iPhone-eBay predictions, we’ll see how I do this time!

Posted in Marketing, Mobile Technology | Leave a comment |

Marketing Morality is Hard: why the future of music is free

Posted on July 3, 2007 by Jeremy Toeman

I recently had a lengthy discussion with my Rabbi talking digital media and more specifically on content piracy. One area we focused on was about people’s awareness of right and wrong, and their tendency to do wrong, whether intentionally or unintentionally. Many have conjectured that consumers would stop “stealing music” if there were “better systems” in place to buy it and use it legally. At this point, I think it’s fair to say the systems are there, and they aren’t really working.

First, to stop a counterpoint in its tracks – I know iTunes sells a bunch of music to a lot of people. Even Steve Jobs himself stated that Apple estimates about 3% of music (max) on iPods is purchased, leaving 97% ripped or copied/downloaded. When I did a music survey several months ago, over 60% of the people who completed it acknowledged a peer-to-peer download within the past 30 days. Let me repeat: 2 out of 3 people are actively illegally downloading content.

Over the past month I’ve randomly been asking friends and strangers the following questions:

  • Do you download music that you don’t pay for?
  • Is that wrong?
  • Would you walk into a Best Buy and walk out with a CD without paying for it?

In almost every case, the answers are, predictably, YES, NO, and NO. Interestingly, there’s no reason to ask people if shoplifting a CD is “wrong” – they know the answer to that one. More importantly is the focus of the second question and the corresponding response. People today, in general, do not believe the act of downloading or copying music files is wrong.

Marc Cuban has some excellent thoughts on the future content, including this one (source):

Can the music industry be saved ? Yep. It would be so easy its scary. Make music available anywhere and everywhere.

In my eyes, this isn’t nearly enough.  If people don’t think of it as wrong, then the problem the music industry faces is deeper than availability, access, DRM, synching, devices, mobility, PCs, iPods, or anything of the sort.  The problem is morality can’t be spun.  Morality is exceptionally hard to market.

Consider the cases where the RIAA has prosecuted college students (and others) for peer-to-peer sharing.  Without fail, bloggers and even mainstream media tend to leap to the defense of the sharer, rarely to the side of the RIAA.  Deep in the hearts and minds of modern technology culture, there is a belief that sharing music files isn’t wrong.

My suggestion to the industry at-large is two-fold:

  1. Publishers/Labels: Enjoy sales why they last, but intensely build out ad-supported models.  Figure it out, and do it soon.  There should be plenty of money to keep publishers and producers in business.  Also, while you are at it, stop throwing money at sensationalist acts that are only good for a track or two – it is a model that has led to the problems you face today.  Focus on spreading your promotional and development budgets much wider across many genres and acts.
  2. Artists: Continue to focus on the live shows.  It’s fairly accepted that that’s how you make most of your money anyway, so work on deals that heavily emphasize your touring and live revenue.  Also, figure out how to do live streaming for micropayments, and enable a revenue source from a fan base you can’t otherwise touch.

I could probably come up with another dozen or so models that would work, from unlimited subscription plans to “donation” options.  At the end of the day, when they say “if you can’t beat em, join em” it’s time to realize that there is a massive groundswell of people who do not, cannot, and will not accept the concept that music sharing is wrong.  No number of lawsuits or failed DRM experiments is going to change that, nor cleverly phrased advertisements at bus stations.

Posted in Marketing, Video/Music/Media | 5 Comments |

iPlan off the target?

Posted on June 26, 2007 by Jeremy Toeman

Headline: “AT&T and Apple Announce Simple, Affordable Service Plans for iPhone”

So maybe I’m missing something, but I would think anyone who has a budget for a $599 cell phone probably isn’t so price-sensitive about their service plans. Although I guess all the kids who’ve saved their allowances for it might find it an incentive. I see this type of stuff all the time with my consulting work. Companies who have a great product/technology/service, but don’t seem to focus on the key messaging to actually sell the product/technology/service. I always look to TiVo’s early marketing campaigns as my pseudo-case study.

TiVo launched in 1999 with a huge marketing campaign (rumored above $50 million – huge for a startup!), focused almost exclusively around one key message: pause live TV. I still remember the first time I saw the ads (TV ones too), which, as a TiVo owner, confused the heck out of me. Here’s the thing – it turns out nobody really cares about pausing live TV, it doesn’t make much sense to a non-TiVo person, and even then it’s just a fringe benefit. There are two features that I think TiVo could’ve worked with and gotten much better results:

  1. Instant Replay – “Miss that shot? TiVo puts you in charge of the Instant Replay!”
  2. Season Pass – “No need to manage piles of blank tapes, TiVo’s Season Pass records all of your favorite shows, no hassle required.”

Overall, the iPhone marketing team has done quite a good job. Then again, the iMicrowave, iLunchbox, and iCeramicPotterySet would probably generate just as much buzz too. I just like to keep my eyes out for when companies misalign their target market, their key benefits and value proposition, and their messaging…

Posted in Marketing, Mobile Technology | 2 Comments |

iPhone predictions: eBayed at $5000, returns, campouts, and more

Posted on June 15, 2007 by Jeremy Toeman

I still don’t quite understand the key motivators that’ll drive iPhone sales, but I do agree that they’ll be selling a boatload.  Assuming there’s no big price drop, I don’t see them moving 10 million in year one (nor 45 million in 2009, come on!), but somewhere in the 4-6 million certainly seems right to me in comparison with a worldwide smartphone market of 113 million units this year.  Then again, since the experts themselves seem to argue about whether the market is going up or down, who knows how big the market really is?

One thing that’s for sure is there’s a chunk of people with a fever, and that fever can only be cured by one thing: iPhone.  They want it, and want it bad.  Americans today have a lot more gadget lust than years ago, and are willing to pitch tents, camp out, and overpay for their “gottahaveits”.  When the Xbox 360 launched in North America, it sold out within hours, and was on eBay for ridiculous prices.  A former coworker of mine managed to get 4 Premium units and sold two for $2500 each, but the record was apparently set at $10,400.  Here are a few predictions I’ll make:

  1. They will not have 3 million units ready by June 29th.  The lead-times to build such high-quality, customized hardware are probably 8-12 weeks, and they’re probably still wrapping up the final software release now, which doesn’t give them enough QA time to load it on all the devices AND ship them to their distribution centers AND ship them to AT&T stores, all of which is not quite overnight.
  2. Diehards will be seen camping out outside of stores as soon as the 24th.  Photos will be taken, put online, and Dugg within hours.  Despite a “6pm local time” statement, by the night of the 28th, I predict no fewer than 50% of all locations stocking iPhones will have one camper.
  3. Major metropolitan areas will be sold out within 30 minutes, and few, if any, units will be available by close of business on the 29th.  I doubt we’ll see shootings, but there’ll be no fewer than 3 fights on record nationwide.  I’ll give a slight outside chance on one AT&T store being vandalized by frustrated customers.
  4. The first wave of public dissatisfied grumpiness will start one week after launch, and steadily increase.  There’s so much hype and the expectations are just too high.  Don’t get me wrong, this won’t be a bomb like the last time Apple was involved in a phone, but I anticipate backlash.  My belief is that human nature shows that people root for the underdog, but turn on a winner, and Apple’s moved into the ‘winner’ camp of late.  I do predict that the iPhone will have higher return rates than anything else both Apple and AT&T sell (at present).
  5. Expect heavy eBay gouging for iPhones for the first month.  Yes, you’ll need to be in contract, but still, they’re comfortable enough betting on AT&T customers, so there’s nothing to prevent someone from signing up, paying out the cancellation fee (or just transferring service to another phone), then selling out the unit online.  Assuming I’m correct about unit shortages for the first week-to-month, I think we’ll see some skyrocketing on eBay, and I’ve polled around some peers for their opinions as well:

Jeremy Toeman: $5000 will be the record price for an iPhone sold on eBay.

Michael Gartenberg (Jupiter analyst): “you’ll see units with an asking price of 3k and more than a few sold at $1,000 or above”

Ryan Block (Engadget Editor-in-Chief): “all bets are off with unlocked [phones]”

Dave Zatz (tech blogger and Sling Media employee): “due to a two year contract, if the price points hold the same for both the new *and* current customers, there won’t be much of an initial aftermarket ”

Veronica Belmont (said whilst prepping her latest CNET podcast): “[I] predict they hit $1200”

Ben Drawbaugh (EngadgetHD writer): “if there wasn’t the 3 million units rumour out there, I would say about 700, but I think there might actually be enough to go around, but I’m not good at predicting these types of things”

Ross Rubin (NPD analyst): “availability is still unknown but, if it approaches the level of consoles during last year’s holiday, I’d guess $2,500 to $3,000.”

Kevin Tofel (Managing Editor, jkOnTheRun): “The new math: how many ebay Wii’s will equal one iPhone. I say three.”

There you have it.  We’ll see who’s right and wrong in the coming months.  Either way, they’ve done a heck of a job building buzz and hype.  Now it’s time for sales.

Posted in Marketing, Mobile Technology | 7 Comments |

Must-read: A Manifesto for Integrating Social Media into Marketing

Posted on June 11, 2007 by Jeremy Toeman

I use the phrase “must-read” on something when I feel it has such a quantity of interesting content that it shouldn’t be marginalized by summary.  Brian Solis’ post today on “the future of communications” falls into this category.  I don’t agree with everything – but that’s okay, I don’t have to (I’d be a little scared if I ever 100% agreed with anyone’s manifesto on anything!). 

More importantly, it stimulated my thinking, and anyone in the business of online marketing should give it a glance.  Maybe you’ll learn something.  Maybe you’ll be inspired.  Maybe you’ll disagree completely.  No matter what, you won’t waste your time. 

Good job Brian.

Posted in Marketing | Leave a comment |

Seven Very Effective DIY Viral Marketing Activities

Posted on June 8, 2007 by Jeremy Toeman

One of my philosophies on being a consultant is I should be absolutely comfortable sharing information with current or prospective clients.  In my early meetings with potential clients I typically go straight into making suggestions as to how the companies can best leverage social media, communities, “the blogosphere”, and other so-dubbed “viral” marketing activities. 

I know this is an atypical practice, as many consultants believe it’s important to hold every tactic close to your chest.   In my opinion, if I can’t add more value over the coming months than I did in the first hour, there probably isn’t much point in hiring me.  In that spirit, here are a few “DIY” viral marketing activities any company can easily incorporate into their strategies.

  1. Have a half-decent product!
    This is actually the most important item on the list.  You can’t spread word-of-mouth on a bad product (although you can do so with a gimmicky one, but that’s a different matter altogether).  If you are having trouble accepting this, just look to the movie industry for literally hundreds of examples.  For an easy one, think back to last summer’s Snakes on a Plane – it had huge buzz prior to opening, the word was a-spreading and everything looked rosy until one critical moment: audiences saw the movie, which was terrible (I got 23 minutes into it on Moviebeam before stopping).  So much for the buzz.  The counter-example, by the way, was Borat, which had mild buzz prior to opening, however was funny enough to get audiences recommending it to friends.       

    One of the reasons we have a “product polish” team in my consultancy is specifically to help companies with mediocre products transform them into better ones.  It’s much more fun to create marketing activites for a quality product than a subpar one, and I personally make a practice of not taking clients whose products I don’t feel can capture their customers’ hearts and minds.

  2. List your product on Wikipedia and other sites.
    Before you go out and spend a ton of money on Google AdWords and SEO consultants, take a few minutes (yes, minutes) to make sure you’ve listed your product wherever you can. Any open directory, any technology/product/service database, etc.  Look up your competitors’ products, make sure you are in every place they are.   Also, be sure to put up posts or articles that aren’t overwhelmingly biased as these’ll get edited out by the community quite quickly.  It’s free, it’s fast, and it helps contribute to the groundswell of sources your customers may be using to find products like yours.
    .
  3. Have a blog, post thoughtful articles, and link link link.
    Jason Calacanis once wrote a blog post titled “blog or die” – it’s not specifically on target with my point here, but it’s a good read nonetheless.  Customer behaviors are changing unbelievably fast, and brand loyalty today only seems to exist for a certain company that uses more white lexan plastic than the rest of the world combined.  Consumers are showing increasing interests in company’s personalities, services, and behaviors – and, of course, pricing policies.  Companies that look to the future are seeking ways to engage directly with their customers, and one ridiculously simple way to do this is to write a blog.  It doesn’t have to be updated daily, or even weekly, but it also can’t be as sparse as a quarterly dollop of chatter.  Also, when it comes to company blogs, quality is much more important than quantity.  Finally, the blog should link out.  A lot.  Linking to other bloggers helps show them how you are actively engaging in the conversation.  My rule of thumb on linking is this: any article I read that helped me form an opinion on a topic deserves a link from me when I blog about that topic.  As a corollary, don’t overlink or link just because you want attention – you won’t win brownie points through insincerity.
    .
  4. Start a dedicated community and engage your customers.
    This is usually on the top of the list of my ‘freebies’ – there is no more effective online tool that I know of to support word-of-mouth marketing than an online community. This can be a fairly vague and nebulous area for some, so to be clear: at a minimum, it’s a discussion forum on your Web site (phpBB is free), or at the other end of the spectrum you can outsource the community technology and even the moderation services to a company.  At Sling Media, for example, I worked with Chicago-based Capable Networks to set up slingcommunity.com.  They were responsible for all the technology and moderating (both of which can be massive infrastructure requirements, so don’t downplay their importance!), and we were responsible for engaging with our users.  As a result, our customers got the opportunity to directly interact with us, provide feedback, and praise or complain about the products.  While it wasn’t rosy at all times, having the presence helped (and still helps) us be on top of whatever issues were important to the customer base, and helped current and prospective customers get a better feel for what type of company we built.
    .
  5. Enable tinkering.
    While I am strictly not a believer in “if you build it, they will come” marketing philosophies, I do believe “if you let them hack, they will market your product for you.”  Amongst the dozens of reasons why Friendster lost the initial round of the social networking wins, one was they were more uptight about their product than Cameron Frye.  No ‘fake’ personalities. No API. No nothing!  And then there’s MySpace, possibly the ugliest combination of Web pages since Geocities enabled the blink and marquee tags.  But MySpace was more interesting to individuals because you could uglify it so much.  You can build widgets. You can build badges.  You can make themes.  It’s extremely extensible.  Take a look at Facebook’s recent moves – all about extending their platform.  Give people the opportunity to make your product/service their own, and it will signficantly contribute to your word-of-mouth potential.
    .
  6. Create and live by an open & honest communications policy.
    This one is a little trickier for most companies.  First up, keep your spin to a minimum.  No, you don’t have to bare the company’s soul to the world, but admitting mistakes wins a lot more praise than making up implausible stories.  Consumers are much smarter than most marketeers give them credit for, and they can sniff out a lie mid-sentence.  When you consider the power of discussions and the individual’s ability to create noise, the less opportunity you have for dumb scandals, the better.  As an example, at Sling Media I implemented a strict policy that no employee was to add comments about the Slingbox on any blog or review site (such as CNET or Amazon) without disclosing their employment status.  Why?  Well, look at the Amazon page for the Slingbox Classic – it’s averaging 4.5 stars from 176 reviewers (at the time of writing).  If the company can honestly state that none of them are employee-fed, then they gain a heck of a lot more trust than if there’s suspicion about shills.  Again, if you have a good product, there’s no need to artificially pump it up – trust your customers to do this for you, they will. 
    .
  7. Improve upon your product.
    1.0 is never perfect, so don’t stop there.  For a consumer electronics device, I recommend software updates at a minimum of 3 times per year.  Fix bugs, improve your UI, add features – do whatever you need to strive to make your product the absolute best in category.  This shows your customers you are supporting them in the long-term, which increases their loyalty to you, which increases the chance they’ll praise and recommend your product to their peers.  This is especially effective if done in conjunction with your community, as it shows them you are paying attention.  There’s nothing more frustrating than buying into some product or service, and getting the feeling they only care about new customers.  Give a little something back to your existing ones, and it’ll go a long way.

So there you have it, seven easy things any company can do to inexpensively help get the word out.  You’ve probably noticed that none of these fall into the classic “outreach” marketing programs – but that’s part of what makes them so effective. I’m sure some people will find these obvious, but I hope others will find value in them.  If you have any other tips like these, please leave comments – would love to hear them.

Posted in Marketing | 7 Comments |

Viral Marketing – it really works!

Posted on May 11, 2007 by Jeremy Toeman

Just read this article at the WOMMA blog, it seems that 4 out of 5 dentists marketers like Crest viral marketing’s impact on brand awareness:

More than half of marketers say they are planning to launch multiple viral efforts in 2007, and more than 80% of “very experienced” marketers say that viral marketing builds awareness.

Here’s a link to the original article with the source data, if you are at all interested in learning about the effects of non-traditional marketing, give it a read. 

As a consultant in this space, I am getting a little frustrated with the saturation of the term “viral marketing”.  I’ve heard from marketers who place a “digg it” button on their home page and say “hey, now we’re viral!”  Another not-so-favorite is “we have a myspace page, yay!” 

In my eyes, viral marketing is a concerted effort to get people to talk, share, or otherwise inform others about your product, company, service, offering, etc.  More than that, it’s about a campaign, not a link.  Sure, your campaign might involve digg or myspace, but that’s not the campaign itself.

Expect to see a lot more on this topic from me in the future.

Posted in Marketing | 1 Comment |
« Previous Page

About

Jeremy Toeman is a seasoned Product leader with over 20 years experience in the convergence of digital media, mobile entertainment, social entertainment, smart TV and consumer technology. Prior ventures and projects include CNET, Viggle/Dijit/Nextguide, Sling Media, VUDU, Clicker, DivX, Rovi, Mediabolic, Boxee, and many other consumer technology companies. This blog represents his personal opinion and outlook on things.

Recent Posts

  • Back on the wagon/horse?
  • 11 Tips for Startups Pitching Big Companies
  • CES 2016: A New Role
  • Everything I Learned (So Far) Working For a Huge Company
  • And I’m Back…

Archives

Pages

  • About

Archives

  • January 2019
  • April 2016
  • January 2016
  • December 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • January 2014
  • December 2013
  • September 2013
  • August 2013
  • July 2013
  • May 2013
  • February 2013
  • January 2013
  • December 2012
  • October 2012
  • September 2012
  • August 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • June 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • July 2007
  • June 2007
  • May 2007
  • April 2007
  • March 2007
  • February 2007
  • January 2007
  • December 2006
  • November 2006
  • October 2006
  • September 2006
  • August 2006
  • July 2006
  • June 2006
  • May 2006
  • April 2006
  • March 2006
  • February 2006
  • January 2006
  • December 2005
  • November 2005
  • October 2005
  • September 2005
  • August 2005
  • July 2005
  • June 2005
  • May 2005
  • April 2005
  • March 2005
  • February 2005
  • January 2005
  • December 2004
  • November 2004
  • October 2004
  • September 2004

Categories

  • Convergence (81)
  • Gadgets (144)
  • Gaming (19)
  • General (999)
  • Guides (35)
  • LD Approved (72)
  • Marketing (23)
  • Mobile Technology (111)
  • Networking (22)
  • No/Low-tech (64)
  • Product Announcements (85)
  • Product Reviews (109)
  • That's Janky (93)
  • Travel (29)
  • Video/Music/Media (115)
  • Web/Internet (103)

WordPress

  • Log in
  • WordPress

CyberChimps WordPress Themes

© LIVEdigitally