Management Secrets of the Grateful Dead

I was never a Deadhead but the MBA in me perked up at this article’s title in The Atlantic. Not one to tinker with perfection, I kept it for this blog post.

Who knew?

The Dead incorporated and pulled board members  from the band, its road crew and other members of their organization. They rotated the CEO position.

The ran a profitable merchandising division and “peace and love notwithstanding did not hesitate to sue those who violated their copyrights.”

They made the strategic decision to let fans tape their shows, which on one hand gave away recording revenues, but on the other, widened their audience. They figured (rightly) that “a ban would be unenforceable, and anyone inclined to tape a show would probably spend money elsewhere, such as on merchandise or tickets.”

A management professor quoted in the story called the Dead’s approach “strategic improvisation,” and observed that people are eager to attend his lectures on the band. “People are just so tired of hearing about GE and Southwest Airlines.”

It’s one of the most profitable bands of all time.

John Perry Barlow, the group’s lyricist cum-Fellow at Harvard Law School’s Berkman Center for Internet and Society, observed

What people today are beginning to realize is what became obvious to us back then — the important correlation is the one between familiarity and value, not scarcity and value…if I give my song away to 20 people, and they give it to 20 people, pretty soon everybody knows me, and my value as a creator is dramatically enhanced.

So perhaps it’s karma, not just deliciousness, that made Wavy Gravy and Cherry Garcia bestsellers for Ben & Jerry’s?

Prompts for Professionals

• If you’ve read this far, it probably has something to do with the novel nature of the subject. Try something refreshing for your next blog post or newsletter.
• The article said that the band pioneered ideas and practices that have been embraced by corporate America, most famously the Dead’s intense focus on its most loyal fans. Ask your blog or newsletter readers  what they would like you to do in addition to or instead of what you’re doing for them now. If you don’t, someone else will.
• The University of California at Santa Cruz is curating the band’s archive of commercial recordings, videos, press clippings, stage sets, business records and correspondence using a form of crowdsourcing. They’ll post as much as possible online and let Deadheads contribute what they know about the items. If you don’t have a blog, get one and start crowdsourcing best practices, war stories, whatever. If you work at it, your blog could become the go-to place for existing and prospective clients to search for answers and community.  I do this with my occasional posting of WORST communications practices by financial professionals — people inevitably chime in.

Home Office Design Tips — From a Financial Advisor?

In my occasional series of crappy newsletters, here’s another, sent by a financial planner.

The only professional I want to get office design tips from is an interior designer or furniture vendor.

With financial reform and the worldwide economic meltdown on most everyone’s mind, sending a newsletter with fluff like this makes me question whether this advisor is in the loop or out to lunch. C’mon, talk to me about something you’re a credentialed expert in!

Oh, the money saving tips? Crap I could get from Reader’s Digest like take your lunch to work instead of eating out and get DVDs free at the public library instead of renting them. You must be kidding.

This is another fine example of sending something for the sake of sending something. This advisor needs an editorial calendar. Big Time.

Oh, and the last straw? She actually PAID a vendor to give her a proverbial communications black eye.

If your boilerplate requires you to disclaim giving financial advice, at least print some material that verges on the topic!

Sheesh.

The Triumph of Snail Mail?

Although I write a lot about e-newsletters and social media communications I’m always on the lookout for merging them with old school direct mail. I was prepared to skip this WSJ article on direct mail because at first glance it pertained to retailers.  Then the article told of an insurance broker using humorous postcards (including the one above) to great effect and I stopped skimming. The broker told the WSJ that when he stopped sending postcards clients complained — many of them collected the cards  as “cubical art.” When he resumed his postcard campaign, he scored a $270,000 new account.

This reminds me of the days when computers replaced handwritten correspondence and press-on labels — I opened the printed envelopes first. But now the novelty of a handwritten address gets my attention. Same with email — the novelty has worn off and most of us are filtering, unsubscribing and otherwise purging senders from our busy lives.

The article offered this as best practice for snail mail:

The idea is to send something that’s more appealing than “junk” mail and potentially more noticeable than an email message, says Eric Anderson, a professor of marketing at Northwestern University’s Kellogg School of Management. That allows business owners “to offer a personal touch the larger firms may not be able to have,” he says.

How well do you know your tribe?

I’m all for using whatever works for your audience, your tribe. I recently read Crush It! by Gary Vaynerchuk, known to many as the Wine Library TV guy. He’s crushing it on social media, especially video, and shares both his philosophy and tactics in the book. I picked up a thing or two from Gary myself (once I slim down I might even try some video!).

On the other end of the spectrum, one of my clients’ tribe is not web savvy, so she takes extra pains to label hot spots on her website (“click here”) instead of relying on them to mouse over without a prompt.  She recently discontinued her printed newsletter, started a blog and sends an email with each blog post.  I, on the other hand, don’t want to clog my subscribers’ inboxes with each blog update — a monthly newsletter with links to the past month’s posts works for my tribe.

Let’s start a productive conversation. I shared my content recycling strategy here – what’s yours? Here’s a little something on email’s dominance over social media – is this the case for your business? Please share your experience combining any and all forms of business communications/channels/media.

Where’s the News in Your Newsletter?

My inbox is clogged with so-called newsletters from people who must have made a resolution to “communicate more” or “do more marketing” in 2010.

Most of them are, in a word, crap.

In two words, self serving.

In three words, not worth reading.

Win a lifetime gift certificate for my services

If you can find the “news” in this “newsletter” I’ll work for you for the rest of my life for free!

(Redacted) brings proven, practical solutions to business challenges with a clear focus on the bottom line. We represent (verbal diahrrea). Our Practice Areas include:

CONSULTING and TRAINING (8 bullets)

COACHING (4 bullets)

If you’ve read this far you’re one in a million.

CAREER TRANSITION (2 bullets)

SALES PERFORMANCE AND REVENUE GROWTH (5 bullets)

(Redacted) mission is to assist organizations in developing and sustaining inclusive environments where all employees can do their best work (blah blah blah).

We work with organizations (yada yada yada).

If you’ve read this far you’re one in a billion.

An advertisement lodged into a newsletter template

This is  best described as an awful ad or an internal document designed to remind the staff who they are and what they do. Releasing it to the public is a sure way to lose subscribers or gain a reputation with your service provider as a spammer.

Not sure what to write about?

Afraid you’ll run afoul of federal CAN-SPAM regs?

Anything I can do to help? 704-907-2811

Best advice: ask yourself, “Would I read this if it came from someone else?” The sender of this advertisement would surely have to answer “No.”

Sharing Deep, Sharing Wide

One of my clients called last week to say,  “I love your newsletter but I want your blog delivered to my email too.”

No need. Every blog post for the preceding month is referenced in my monthly newsletter (along with some original content). Why do I do this?  My readers have lives of their own and I need to make it easy for them to access my information (duh).

The good people at ShareThis have a little application that can be inserted into blogs and websites. It enables readers to share what they’re reading via email and social media platforms in a couple of clicks/keystrokes. This gives ShareThis a unique vantage point from which to watch sharing behavior.

And what do they know? 46% of shared information reaches its new destination via email, in spite of social networking sites in the aggregate edging email out.

Tweets and Retweets

I owe a great deal of my traffic flow to Twitter, where I actively participate in financial, economic and marketing conversations and share what I’ve written as it’s appropriate.  At least a third of my blog traffic is Twitter generated, so I was surprised to read ShareThis stats on this beloved service:

We found that Twitter is the least engaging share platform with users visiting an average of 1.66 pages when they click through to a site, while users coming in off e-mail were the most engaged, visiting 2.95 pages (emphasis mine),  and Facebook trailing closely behind 2.76 page views. Of course this varies by vertical and site, but if you think about your own habits, it makes sense. Getting an emailed link from a friend may cause you to pay more attention than the more random discovery that you get on Twitter as you consume quick opinions. We think there is tremendous potential for Twitter to increase its engagement when and if better filters are applied – the type of filters that Facebook has built in from the start.

My best recommendation, even if you devote time to build your presence on Twitter, Facebook, LinkedIn and other sites, re-distribute your messages with a regular e-newsletter. A belt & suspenders approach to being heard.

Six Shortcuts to a Knee Whack

We all love shortcuts, but sometimes they backfire.

I see professionals in financial services and the law taking shortcuts with their newsletters and  email marketing efforts all the time.  Nothing’s worse than a self-inflicted knee whack.

Be sure to scratch these six shortcuts off your list — they’ll definitely get you into trouble.

1. Add everyone from your Rolodex into your email subscriber list/ troll for email addresses online/ buy a list of email addresses

• To comply with CAN-SPAM guidelines, each person on the list must OPT IN, verbally or otherwise
• This shortcut violates the service terms of every internet service provider (ISP) think: Yahoo, Hotmail, Gmail etc
• It really irritates recipients, making them likely to report you as a spammer
• ISPs and corporate email services are aggressively scrubbing unsolicited email from recipient mailboxes. The more services that block you today, the more services are likely to block you tomorrow

2. Send bulk email from your own outbox

For an average-sized email list you can send a monthly newsletter for $30-50. Here’s what you get in exchange  for your pittance:

• Handling subscribe and unsubscribe requests according to federal guidelines
• Automated management of  bounced emails and your email list
• Dealing with spam complaints made against you
• More of your messages hit the inbox instead of the spam filter.  Email services have  relationships with ISPs that you  don’t have and can’t afford to develop

3. Make it easier for readers to hit “spam” than to un-subscribe

If you’re emailing to the US, you must provide a mechanism for recipients to stop receiving your messages. Don’t hide or minimize the unsubscribe link in your email.

When someone hits “spam” or labels your email “junk” your reputation with the ISPs takes a hit (they’re watching). If you earn a reputation with one or more ISPs as a spammer, it’s almost impossible to get your messages delivered anywhere.  While results vary by the filter policy of each ISP,  the 2008 Lyris report says it’s the sender’s reputation driving 25% of messages to the SPAM folder.

Bottom line: you don’t want to talk to people who don’t want to hear from you.

4.  Load up your message with “spammy” words

With 15% of all reported spam last month was finance-oriented, ISPs are aggressively scrubbing emails with references or offers related to money, the stock market or other financial “opportunities” including investments, credit reports, real estate and loans. Here’s a partial list of words that typically trip the spam filters.

5.  Bombard your list

In a study by Merkle this year, the main reasons subscribers choose to opt out of email programs are perceived irrelevance (75%) and sending too frequently (73%).

Promotional emails were deemed the most intrusive. Solution? Make your newsletter informative, not promotional.

Merkle reported that 20% of those receiving e-newsletters thought they were worthy of reading,which means 80% thought what they received was crap. Further, people reported receiving on average,about eight newsletters each month. That’s a heap of competition for YOUR customers’ attention.

6. Send crap for the sake of sending something

I receive a monthly newsletter from an Infiniti car dealer. I look forward to it for the same reason some people watch horror flicks.One edition was devoted to movie trends and the price of popcorn while another included a series of profiles of famous explorers from the 15th  century.

Crap.

I’m not imaginative enough to tie movies and explorers to the latest model sports car; this dealer doesn’t even try!

The surest way to avoid sending crap is to devise an editorial calendar. Without one, you risk losing subscribers. Or you’ll only keep subscribers like me who want to mock you in their blogs.

For more information here’s a download of a CAN-SPAM guide and a PowerPoint with more details.

Burned by Boilerplate

As we hurtle towards 2010 some financial advisors and life insurance agents keep communicating like it’s 1999.

The boilerplate communications racket

In the past week I got two identical Thanksgiving e-cards from different reps of the same general agency. Uh oh. It started with an email inviting me to “click here and view the card on a secured site…” which launched a browser, inside of which played a little flash file of autumnal photos — an animated version of the cheesiest Hallmark card ever printed. It was “customized” with the name of its sender.

Awash in meaninglessness

This week I got this email from a rep that said:  “Every few months, I try to keep my clients and friends up-to-date with current financial issues or critical concerns…” and once again I was invited to view this important update by linking to a secured site.

She set my expectations right up front by promising “up-to-date with current financial issues or critical trends.” I don’t know about you, but I thought  “financial issues or critical trends” might include  something like financial services reform and how this rep is going to go above and beyond the  regs to assure my confidence. Or perhaps a report on how how certain classes of annuities performed… How naive of me.

I clicked the link and got a flash-powered thingy that looked like a PowerPoint deck. The lead screen made the further promise “Providing valuable information of particular interest to you.” Wow, to me!

I then learned that (gasp) “Most people are frustrated by the amount of income tax they’re paying.” Really?

Next came a little lesson on the miracle of compounding interest. Be still my beating heart.

At the end I learned that there was a difference between tax-deferred and taxable income. A targeted message if ever there was one.

And what was the conclusion?  “There could be ways to reduce your tax liability and optimize growth!“  You’re kidding!  Somebody thought of that?

Then there was the lame call to action “Please provide information.” Clicking through I faced a comment box and the warning that I should allow 48 hours for a representative to get back to me. 48 hours? No one in 2009 is going to be that patient. If they want a product they could already buy it online in 48 hours.

You need to stop this. Right now!

I know you work under compliance regs and some companies and agencies are tougher than others.

I also know that these boilerplate services cut deals with the companies and agencies.

Still, there’s no excuse for sending out crap, absolute crap. If your compliance department won’t allow anything besides this boilerplate pablum, abstain altogether.

If your company has an approval process for customized communications, get on the stick! If not, pick the phone off  its cradle and call your clients to wish them a happy new year. THAT will get their attention.

Authenticity can’t be bought, but is priceless

If you’re doing a mass customization communications campaign, do the job properly. For clues of where this boilerplate went into the ditch, look for my snarky comments above in blue.

If this all sounds like work, you’re right. Tell you what, give me a copy of your compliance requirements and I’ll devise a compliant communications strategy.

Devising your Editorial Calendar

Exhortations to “publish, publish, publish” forget the most important advice: publish something worthwhile. To communicate in a meaningful way build an editorial calendar and stock your content pantry.

Building blocks for an editorial calendar

Seasonality. The US tax season drives business to accountants, but also  drives a spike in calls to financial advisors and some attorneys. Surely there is seasonality in your business, too. What seasonal issues do your clients face? Can you come up with one for each month of the year?

Key Messages. One of my clients is a JD-CPA who specializes in estate and succession planning. His newsletter’s target audience are accountants and financial planners. He writes about triggering events in their clients’ lives that might cause them to consult with an estate planning professional, making liberal use of case studies. What are the top ten things your clients need to know? What are the top five mistakes your clients made before working with you? What are the three most expensive errors your clients make when trying to go it alone?

Political calendar. Here in the States, 2010 is an election year, so candidates will be talking about change. Seize the momentum and prepare a series of articles or posts on topics likely to get news coverage. If you play your cards right (or hire a public relations pro) you might have the good fortune of being quoted by mainstream media.

The 24×7 news cycle. You can’t plan ahead for all breaking news, but you can capitalize on it. Once you know your key messages you’ll be surprised how often something in the news prompts you for a blog post or newsletter article.

Build a content pantry of key messages

Back in ye olde days (before 1980 or so!) people stocked “staples” in their kitchens/pantries including flour, sugar, salt, baking powder, herbs, spices…you get the idea. This made it easy to whip up a myriad of dishes with the addition of items that can’t sit on the shelf as long.

Think of your key messages as a “content pantry.” One of my clients, a mortgage planner, has this in his content pantry:

• A written mortgage planning philosophy
• Case studies of how people in various phases of life can apply his philosophy
• A recommended process for people to find and finance the right house
• Case studies of refinancing strategies gone well and gone badly
• Some mortgage planning tools like a Household Blended Debt Rate calculator
• A list of mistakes people often make when house/mortgage shopping

Add a seasonal calendar

The mortgage planner’s calendar includes:

• First Quarter:
  • Good financial/budgeting hygiene
  • Planning ahead to making deposits on colleges (refi may be in order)
  • Tax season
• Second Quarter:
  • People start thinking about selling their home
  • Get a mortgage plan before falling in love with a house
  • Local stats on home values, appreciation,  school boundary changes & other things of interest to shoppers
• Third Quarter:
  • Basic financial advice (evergreen topics)
  • Reminders to come in for an annual mortgage review
  • Looking ahead at funding college
• Fourth Quarter:
  • September is Life Insurance Awareness month; he talks about the role of insurance in an overall mortgage strategy
  • Year-end/first-of-year planning topics (might include refi)

Ready to publish

This client is basically ready to go. When something hits the news, he already has key messages from which to base commentary. How’d he get to this point? I helped.

You can do this, too. What are you waiting for?

Low-Jargon Financial Blogs & Newsletters

I write blogs and newsletters for attorneys, advisors and accountants. These professionals often need to provide complex information without making their clients’ eyes glaze over.

Professionals  with compliance/malpractice concerns  too often navigate the middle of the road where nothing meaningful is communicated. Some admit they hope readers will pick up the phone and call for clarification “on the clock.” Bad strategy.

Everyone faces this challenge of writing thorough-yet-understandable communications  from time to time. Here are writing tips for newsletter or blog writers who aspire to communicate without using jargon on one hand, or dumbing down the message on the other.

It’s a conversation, not a treatise

• Provide links to jargon, technical definitions and 50-cent SAT words like “treatise.” This way, everyone can get as much info as they need on their own and your writing doesn’t bog down
• Don’t mistake your articles for term papers!
  • Use headers, bolds and links to enable (gasp) skimming
  • Avoid passive voice; use active voice
  • Write to the appropriate reading level of your audience
    • Run your copy through a fog index calculator (tells the number of years of education needed to understand what you’ve written)
    • If you use Google Docs, click Tools>Word Count and find the analysis at the bottom
• You’re not a professor
  • Don’t try to tell everything you know about the subject. Pare it down to the essentials
  • For weighty topics, write a series of short articles
  • Provide an intro to the topic in your newsletter and link to your blog/elsewhere for details. If you can find a video (or make one yourself) your audience will be grateful. Here’s how one of my clients does it
  • Leverage industry videos and handouts (be sure to comply with licensing and copyrights)

Engage readers

• Invite them to leave comments and comment on those of others
• Offer a free worksheet to help them apply the information to their lives — invite them to review the information with you off the clock, if appropriate
• Ask readers to weigh in on a topic by linking to a survey that gives them the option to see how their answers compare to those of other respondents
• Poll readers for future articles on similar/related subjects

Brains need variety

• 

  This infographic is from a parody site

  Use stories – our brains are wired for stories -and people “find” themselves in them.

• Use case studies for the same reasons

• Link to a narrated presentation deck or video to stimulate the story-receptive part of readers’ brains. One of my clients does this very well

• Use  infographics or produce your own charts and tables. FlowingData is a great resource to learn about them and you might find one to use there

What techniques have you or others used to make complex information digestible? What have you seen out there that turns you off? 

SPAM Tweetup

Looking forward to seeing anyone who wants to talk about SPAM in Charlotte Weds, November 11 at 11:30 :

• Who decides when spam is officially SPAM
• Making sure you’re not mistaken for a spammer
• Best practices for email marketing (including newsletters)
• How to handle spammers

By nature, a tweetup is informal, so drop in at Mama Ricotta’s and meet some great tweeple. Not tweeting yet? This group might convince you to give it a twhirl.

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