The Gilman Company Blog

Nintendo DS: Repurposing Flat Products

On this blog, I've written about redeveloping existing products or services to meet new needs, thereby expanding market share options. A perfect example of this is the Nintendo DS and the available software options.

Of course, the DS is a unique hand held device that is the latest in a series of similar hand held devices originally developed for gaming. Much like the Wii from Nintendo, the DS is no longer a device that runs cute gaming software for children only. Now, it has many applications, some of them very practical. A number of software developers have created applications for the DS that are valuable to adults.

Recently Atari launched a software product that runs on the DS that features celebrity chef Jamie Oliver. The software ($29) teaches users how to cook certain recipes, step by step. Users can get advice at the grocery store, over the stove, or on sprucing up recipes.

Enough of that, the point is that Nintendo has effectively transformed a seasoned and successful product concept to meet more needs and attract an entirely new market to the DS, namely adults. Without losing its appeal to children, it is now a device that children (and adults) can enjoy.

Side bar: I have a product that every child wants. How do I get their parents to buy it for them: add value to the product for adults.

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Angry People: Don't Take the Bait

In a business environment, from time to time, you will almost certainly have to endure angry people.

Above all, stay cool and do not make it personal, whether a customer, a staff person, a partner, etc. Recognize that 'anger' is not an emotion that leads to good business decision making. Also, don't indulge in personal attacks, even when being attacked yourself.

Easier said than done? Not really. Your commitment to professionalism and to the improvement of your enterprise will outshine any desire to engage in an unproductive argument mired in anger. Take the high ground. If appropriate, recognize and acknowledge the issue causing the anger and suggest a meeting or discussion at a later time (after a cooling down period). At the same time, don't fan the flames by being aloof, ignoring the person or by humoring or patronizing the person with feigned and exaggerated concern.

When the dust clears, and after an analysis of the issue, this could also be an opportunity to improve on a process, policy or way that you relate to the types of people like the person who was angry. Generally, keeping people happy is good business. Take this approach and you will increase your stature as a leader, gain the respect of the person who was angry and be recognized as a part of the solution, not a part of the problem.

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Business Website Review: Craigslist.com

Using Craigslist can be valuable to your company, but the site certainly isn't for the naive.

Craigslist is a classified ads website, which means you'll find personal ads, offers of employment, offers to sell things, offers to buy things, personal ads, discussions on all sorts of issues and housing related ads. One of the things that makes Craigslist so useful is the ability to target the ads you place or review geographicly. All major cities in the US have their own areas on the site and other countries are also featured. Select the region you're interested in then select the type of ads you would like to review (same for posting ads).

Another great thing about Craigslist, aside from the fact that it's completely free to post ads on the site, is that it's one of the most used online classified ad sites on the web. This means you can usually find something on whatever it is that you're looking for. This, however, can also be a disadvantage. For instance, if you use the site to advertise a staff opening, it's possible that you will get countless responses back. Here, you will have to sort through a great deal of responses and discern which may be best for you.

Yet another problem with Craigslist is that it is unregulated for the most part. You should expect to find some fraudulent ads and get fraudulent responses to ads. Although Craigslist does have some safeguards in place to protect those who place ads, it is very much a jungle. The reason why this has not ruined Craigslist is because there are more than enough legitimate ads and ad respondents. The bottom line is you have to be careful.

That said, the primary advantage for businesses is that it's free to use. There's no harm in putting your line in the water, right? The site can be a great place to save money on things you might need for your business and it could also be a great way to get rid of things that are difficult to sell. Note, however, that Craigslist is not a good place at all for traditional retail (i.e. don't stop using eBay to use Craigslist).

One great lesson to take from Craigslist is that the substance of a product or service can be more compelling than the style of how the service is presented. Craigslist, one of the most visited sites on the web, has no graphics.

The site: www.craigslist.com
On wikipedia: Craigslist

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Direct Mail Campaigns: When to Spend the Money

Marketing gurus the world over seem to have agreed on one thing when it comes to direct mail: never say never. Translation: say no most of the time.

However, another "never" is, never do direct mail without an exceptionally careful analysis of what your expecting to achieve with a direct mail marketing campaign and without getting as close as you possibly can to understanding the likelihood of your success.

Although it may not be the right approach all things considered, in light of the current economic crisis, many organizations are cutting marketing expenditures. That said, your marketing dollars are more precious now than they have ever been and your decision to spend on a direct marketing campaign should be scrutinized even more strictly.

Still can't decide. Try testing a direct marketing campaign. Depending on the size of your marketing list, cut your target recipients down randomly to a tenth of what a full direct mail campaign would look like and then pull the trigger. If you're decision is whether your current direct mail marketing efforts are successful, test the same way, but in reverse. Either way, put an empirical success/failure measurement tool in place.

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Product or Service Outlook Flat? Meet More Needs

So, you have a solid product or service, right? Lesson 1: solid = flat.

Think of what you're selling in terms of the needs the particular product or service meets. Doing some marketing? Think about your marketing in terms of the needs that your marketing communicates. Okay, now hold that thought for a moment.

Think about the some well known commodity products that dominate large markets (you know, the kinds of things you see on billboards): cell phones, food, computers, cars, etc. Every new thing that hits those markets attempts to meet an all-new need and as many needs as reasonably possible.

Example: My first mobile phone made calls, had an analog clock and received voice mail. Those are some pretty important needs. However, my mobile phone now does all of that, but also has GPS, email, texting, internet access, a calculator, an MP3 player and other features, I'm sure, that I'm not even aware of. A lot more needs than before.

Now, you're probably not selling mobile phones. No problem. But, you probably are selling something that can meet a few more needs and I'll bet the product or service of your arch rival (AKA, your competitor who is more successful than you are) meets more needs than your product or service.

To begin, think about meeting a new need that your product or service infrastructure is already prepared set up to meet. Also, as you meet more needs, work on the macroeconomics side strategically considering your competitors and don't just meet the new needs, market them too.

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Customer and Consumer Feedback: Get it and Prosper

Customer feedback offers a wealth of information. Without it, you're driving down a winding road at night without the lights on, and that's not something you want to do. So, what do you get out of customer feedback:

1. Show that you care about what your customers think: do not underestimate the value of simply listening to your customers in a genuine way
2. Solve product or service issues that you may not be aware of: A very simple realignment in your product, service or even how you administrate or communicate could open the floodgates to success. An effective feedback regimen will solve those issues quickly.
3. Get free research and development feedback: Hey, how about getting ideas to upgrade your product or service from the people who are actually buying?

Consumer feedback, as opposed to customer feedback, may be even more valuable. What do the people who aren't buying your product or service really want? Why wasn't getting in front of them enough? Do you even want to convert those consumers into customers?

Depending on how much feedback you get from customers or consumers, you may start to see patterns in the feedback you get. Track your feedback in categories and sub-categories to leverage your data effectively. Don't completely rule out feedback aberrations; they could be your next big idea. If necessary, offer incentives for feedback (it's that important). And, don't rule out negative feedback (in fact, expect it, embrace it). There's buckets of value in that information too.

Trying to get feedback to no avail. Even that's good feedback (your feedback approach isn't working...fix it).

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How to Apologize

One business myth that can inhibit your personal productivity and the productivity of your company, depending on your place in the company, is that business is all about thick skin. In many cases, nothing can be more effective than a sincere apology.

This is not the blog entry about effective PR or public apologies. This is about being a competent leader within your company. This is about setting yourself apart and taking the high ground, as legions of great leaders before you have.

There is only rule for making an effective apology: say it like you mean it.

The wrong way way to apologize: "I'm sorry if you misinterpreted what I said and if I happened to offend you." If this is what you're going to say, consider not apologizing at all, as this could cause more harm than good.

The right way to apologize: "What I did was wrong. I'm sorry. I shouldn't have done that and I won't do that again."

Before apologizing at all, consider the gravity of the offense, don't make a habit out of apologizing for minor offenses and don't apologize for others. When practical and possible, apologize in person and do not apologize if you will not take responsibility.

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Customer Communities and Online Forums

Customer service is costly. Briefly, where does the money to support your customer service efforts come from. Of course, it comes from your product. It's built into your pricing structure or it comes from reduced R&D. Tragedy of tragedies, it may come from you not having that $700 desk chair, preferred parking, extra time off or the catered meetings that you want. You pay for customer service.

Why not let your customers serve themselves by establishing a product or service based online forum. This will work especially well for products and services that are geared toward younger consumers. Whether you believe it or not, you have some very enthusiastic customers that are going to waste and they can't wait to relate to your other customers. In an online forum, those customers can respond to inquiries from other customers and your staff can chime in from time to time on problemed issues that don't get resolved by the community.

This type of community certainly will not serve everyone, but it could reduce your customer service costs substantially and developing a community around your product will only advance customer loyalty.

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Refurbish, Remanufacture, Recycle: A $130 Billion Industry

Today's print Wall Street Journal reports that reconstructed products account for $130 billion dollars in business. With mass market buyers feeling the squeeze, manufacturers and distributors can expect even stricter demands in return/defect policies. Many, brand name manufacturers also leave retailers holding the bag. The bottom line is that there are piles and piles of products that just won't make it back to retail shelves.

Whether you fall in the retailer or manufacturer/distributor category, you can turn those products into an all-new revenue stream. Yes, closeout may be an option depending on the product type, but those products may be more valuable than pennies on the dollar.

Refurbish: Get products back on different shelves by making them as good as new. Often, it costs more to manufacture a new product than to refurbish a used product and the difference between recycling and reselling, including the cost to refurbish, can mean higher margins than investing in new products. Here, you can also leverage higher margins and lower retail prices for refurbished products, but it's likely that you'll need an alternative distribution channel. Try eCommerce, specifically auction sites.

Other similar solutions for products that aren't in brand new condition are manufacturing and recycling.

Discovering the most cost effective approach to dealing with these products can amount to that additional cash flow push you need or an entirely new revenue stream. You can also leverage a competent strategy here to get an edge on your competition by more competitive pricing or more liberal terms for your buyers. Now, you have a backup plan for returned products that results in revenues, not just breaking even, so you beat out your competition on pricing or service.

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New NV Law Requires Businesses to Encrypt Data: Other States to Follow

Okay, maybe passing information about your customers around to administrate various aspects of your business works just fine without complicated technical safeguards in place. After all, it is possible to make something that is very simple unnecessarily complex by applying technology, right?

That said, get ready for a wave of new laws requiring business to protect information that might personally identify your customers or clients. Nevada is the first state off the blocks with this type of law. Other states are soon to follow.

This is all about information security and the major key to compliance will be encryption on networks, laptops, email and record keeping. With many encryption and general security options available, be sure to make the right choice for your company. The right solution here will be based on how you presently handle data that is contemplated by these new laws.

Example: sending and receiving invoices by email that include credit card information.

Details on this story from FCW.com.

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