What’s the value of “cheap” creative?

A long time consultant client, concerned about the recession, asked me to cut creative pricing to the bone on a couple of recent jobs then came back and asked me to cut again. I agreed because I was well, concerned about the recession.

An interesting thing happened on both these jobs. Instead of being happy they were getting fantastic value, both clients tinkered with revisions long past the point of reasonableness. In one case, I think the client tinkered to the point that he did his message serious harm.

I caution my students against doing spec work because free is worth what you pay for it; the spec work will be lightly regarded and clients will either not read it or will be butchers with the edit pencil. This is a similar situation, I think. The price is so low that subconsciously, the client thinks the creative can’t be very good. So no worry messing with it.

In general I’ve avoided cutting prices the past year because of experiences like this. If a client balks at an estimate, I ask what they are concerned about. If they have a number in mind, I try to deliver quality for that without compromising.

Hourly rates have been a particular concern. My rate isn’t the lowest. So if a client asks what my rate is and says “I can’t pay that” I say let’s throw out the hourly rate and look at an overall budget. They are happy, but I still end up charging my rate or close to it.

It will be good when times are better again and we can concentrate on doing great work that builds our clients’ businesses and pays for itself in measurable response.

The “CEO Letter”

A client and I got into a wrangle recently when he asked me to write a “CEO letter” to other top execs who would be joining him at an event, and the result was not what he expected.  Here’s what I responded by way of explanation:

There’s been a fair amount of discussion and research on this topic in the DM community, as you might expect, and I’ve myself written a number of “C level” or “CEO” letters over the years. I think there is universal agreement the most important characteristic is BREVITY.  An efficient CEO is not going to get down in the weeds of an issue because of an unsolicited letter. What you need to do is instantly establish relevance, describe an action which is quick and easy to take—eg NOT “I am going to take time to research this company because they have provided me with some interesting stats and education” but rather “I am going to ask my marketing director to include this company on his short list to check out”and then get out.

As for tonality, the most important element is showing the reader you respect his or her time as a fellow CEO and makes clear the offer of a personal demo. The tonality consists in being brief, terse and to the point much as if you would be talking to him or her in person.

Do you write letters to high level executives in your own marketing? What works best—brief and to the point, or laced with personal elements? (That’s what my client was expecting, I think.) Inquiring minds (mine, anyway) want to know!

Meaning-based marketing arrives!

You too can have marketing which is meaning-based.
You too can have marketing which is meaning-based.

Maybe you are making no attempt to put any meaning into your marketing today. Or perhaps it has not occurred to you that you should be “understanding — not merely tracking — all forms of customer interactions to deliver online experiences that are more relevant, engaging and profitable than ever.” If so, this free event is for you. And you even get a steak dinner out of it!

Yes, that’s the sound of my tongue in my cheek. This is funny but it’s not. As hard as times are, it’s hard to imagine how somebody could choose as their “light bulb” moment that maybe marketers have not had it occur to them to make sense of their advertising.

By the way, the link is clickable to the real invitation.

How to measure the value of word-of-mouth comments

You know I’m a fan of Southwest Airlines and a complainer about AT&T Wireless. But how much are my opinions actually worth to those companies? An former client, Satmetrix, has devised a back-of-the-envelope exercise that shows how to calculate the value of word-of-mouth (WOM, pronounced “wom”.)

Start with the following assumptions:
1. The lifetime value of a customer before considering WOM is $1000.
2. Promoters buy more at higher margins and defect at half the average rate, so their value before WOM is 3 times that of an average customer.
3. Detractors’ lifetime value is half that of the average customer due to complaints, higher service costs, and short tenure.
4. On average, Promoters make 4 positive referrals, 0 negative referrals.
5. On average, Detractors make 0 positive referrals, 3 negative referrals.
6. It takes 6 positive referrals to generate a new customer.
7. Each negative referral neutralizes 4 positives.

Based on these assumptions, you can now calculate the following:
1. What is the full value of a promoter compared to an average customer?
2. What is the full value of a detractor?
3. What is it worth to convert a detractor into a promoter?

The results may be eye-opening, and will certainly show why it’s smart to be good to your customers instead of treating them like crap. If you like this exercise, it’s worth converting the formulas into numbers that are are more reflective of your experience with your own customers. Have fun!

My brisket recipe, revisited

My brisket recipe
My brisket recipe

After the writeup on Texas barbecue, several folks asked if I would repost my original brisket recipe as text, not an image, for easier reading. Here you go. I’ve added a few thoughts on technique, in italics. This recipe came to me in a package of materials purchased through some kind of multilevel marketing exchange back in the 80s. You would pay the sender $1 for the packet and then send it on to 10 new people, each of whom would send $1 to you. For whatever reason, this did not make me rich, but the recipe is worth all of $1 and more.

5 Easy Steps to Delicious Brisket
(8 to 10 lb. Brisket)

1. First – Rub salt, pepper and brown sugar on both sides of brisket. Leave the fat side up thru entire cooking time.
Unlike some, I recommend lightly trimming away the fat while still leaving a good layer over the meat. If you don’t trim at all you are going to end up with a lot of tasty smoked fat.
2. Second – Put on smoker “fat side up”. Remember not open flame, just hot fire with smoke. Charcoal broquett is fine.
Smoking is cooking with indirect heat, in which the fire is in another part of the grill and the smoke and heat are drawn across the food by the way you manage your airflow. The good smoky flavor is going to come from chunks of hickory or oak (I find mesquite and apple too light in flavor) that you will soak for 30 minutes or more before adding to the fire. Also, you need a source of moisture, such as a pan of water inside the cooking vessel, to humidify the cooking atmosphere and concentrate the flavor.
3. Third- Leave on smoker for 3 hours checking fire every 45 minutes so bottom of brisket won’t burn.
During this time you should be steadily replenishing the charcoal and wood chunks for a constant smoky fire. I like to leave the smoke vents open at the beginning to build up a good fire, then shut them completely to grab all that sweet smoke, then open them a little just before the fire is about to go out and leave that way for duration of cooking.
4. Fourth- To finish for perfect tenderness wrap in foil, put in loaf pan, and finish in the oven at 325 degrees for 2 to 3 hours. The last hour of cooking in oven, test by sticking a fork in brisket at both thick part and thin part. When fork goes in easily without force it’s done.
5. Fifth – Unwrap; let cool slightly before slicing. Remember: Never put B.B.Q. Sauce on brisket while cooking. The smoke gives the flavor and the oven gives great tenderness.