Monday, July 29, 2019

The DiGoddi Method : What Goes Around.........

Nico DiGoddi ran a small grocery store in the neighborhood I grew up in. Everyone in the neighborhood shopped at DiGoddi's and everyone called him by his surname.

DiGoddi styled Italian store

DiGoddi lived in a small apartment behind his store with his aging mother - there was no Mrs. D.  The store was small, about 30ft. wide x 60ft. long but was a mecca of  Italian food which was piled high and filled the store -  barrels of olives to umpteen varietals of pasta and olive oils, along with produce, can goods, cheeses, meats, and baked goods. DiGoddi's was always busy. 

I was about 10 and had been going to DiGoddi's almost on a daily basis for several years, making purchases for my mother, aunt, and grandmother. It was at this time that I was introduced to the 'DiGoddi Method', which marketing gurus now term mystery or suspense marketing. 

The Scenario

One day there was buzz in the neighborhood. DiGoddi had just returned from his annual August visit to "the old country" and brought back a giant Provolone cheese. Without hesitation, I ran down the block turned left and went another half-block - I was in awe. Right in the front window was a Provolone 6ft.high x 3ft. in diameter with a thick white cord wrapped around it. WOW!
Normal sized Provolones

For weeks 'the cheese' (as it was now referred to) just stood there. Customers continually requested  a piece of the cheese but DiGoddi stood firm and non-committal as to the fate of 'the cheese' - it was now mid-October.  Then suddenly, it was announced that 'the cheese' was going to be pre-sold in 5 lb. increments only.

Marketing At Its Best

DiGoddi was a master at marketing. He knew that if he had cut 'the cheese' right-off and sold it in one pound pieces it would have taken weeks and weeks to sell and perhaps much would have gone to waste. Instead he played on the mystery and suspense, the exclusivity - he created the desire! The whole cheese was sold before it was cut.

I was there the day DiGoddi cut 'the cheese'. It was a Saturday morning in early December and he was in great form, weighing out 5, 10, 15 pound parcels at a time. Customers filled the store and went down the block and were not only picking up 'their' cheese but purchasing lots of other items needed for the upcoming Holidays. DiGoddi had planned it that way.

Suspense Marketing Today

The hint, the rumor, the exclusive, the first-to-have, the bespoke - these are the buzz words used in marketing circles today when a product or service is introduced, a sales event is planned, or a new company or product is launched.

Sneak previews and lures via email, blog posts, Instagram, social media marketing, and influencers.These are the new 'cheese' that DiGoddi used years ago - and it works.

For more on this topic and other pertinent information read this blog or get on to our new membership listing - its FREE and comes with lots of 'goodies' and ways to win swag.

Jim Lavorato, Principal
Fund-House Ventures, LLC
www.fundhouse.us
jlavorato@fundhouse.us


Saturday, July 20, 2019

Modern Marketing : Transforming How We Sell

Marketing is currently all about brand management and advertising, but this model is quickly transforming into a more subtle and complex endeavor.
Consumers: more engagement, less loyalty
  


Given that there is much more data available for better targeting, segmentation, personalization, and analytics within reach of very business changes the dynamics of marketing. For example, largely driven by mobile, digital-media spend now outpaces TV- ad spend. With all that said, consumer loyalty is declining and competitors are only one click away from your customers. 


So, more data, more digital, more mobile, more opportunity, but less loyalty.


Today's marketers must drive and be accountable for revenue growth, delivering ROI on every marketing and promotional dollar. Their role is morphing to brand protector and overseeing of the constant improvement of the end-to-end customer experience (CX). 

Responding to what the market is communicating in a very agile and swift fashion, consumer connection at the emotional level, messaging and imagery, personal engagement, are all very relevant particularly given the trend of the less loyal customer.



Every business MUST improve their end-to-end customer experience - as competitors are only a click away.

Allocating marketing dollars between spending on digital media, data analytics, and building its martech stack vs. spending on creative copywriting, design, ad campaigns, and other traditional modes is now the norm. Today, very business should be thinking about having an always-on marketing campaign. 

Going forward, for all businesses the accelerant will be based upon being and not doing. Being agile and creative not doing creative one-offs. Being CX not doing CX. 

Jim Lavorato, Founder & Principal
Fund-House Ventures / 4M Performance
fundhouse.us

Tuesday, July 16, 2019

The Heavy Cost of 'Free' Social Media

Social Media has been around for almost 20 years and today billions use it on a daily basis. Soon, however, all of us will need to decide whether to continue paying for 'free' services by providing unending amounts of personal data or pay upfront for better services that do not exploit our privacy for commercial gain.


When we use data-driven social networks we feed these platforms information regarding our identities, personal relationships, and experiences - this meta-data is than used to bombard each of us with unrelenting, user-specific advertising with uncanny precision. For example, Facebook, despite its denials to the contrary, focuses not on creating a community of users but in developing an ever more efficient advertising/marketing platform.

Consumers are recognizing that there is great value in obtaining 'real' news that is well-researched, fact-checked, and truthful - and are willing to pay for this vs. getting 'fake' news, unverified press releases, and click-bait.  This situation will force people to migrate to quality services and give rise to new, smaller fee-based social networks rather than those that collect our personal data, use it, and provide us nothing of value in return.

It was only a short-time ago when the experts said consumers would never pay for music or streaming movies, but people have demonstrated that they are willing to pay for quality 'experience'.  I believe, at this point in time, consumers are willing to pay a little to get access to sites and services that aren't awash with bots, fake news and antisocial behavior.

People are waking up to the heavy cost of 'free' social media. It's time for us to recognize this and move to more beneficial and useful ways of using the power of the internet.

Jim Lavorato, Founder & Principal
Fund-House Ventures, LLC
fundhouse.us










Saturday, July 6, 2019

Part #3 - Gen Z And How They'll Impact Business

This is the final part in a 3 part series-post on Z Generation and their impact on business.


Three forces are emerging from the Z Generation that will force businesses to think and operate differently and those forces are driven by technology and behavior.

Possession Replaced By Access

The Gen Z'er is a more pragmatic and realistic consumer and is inclined to access and evaluate a wide
range of information before purchasing.

For Z'ers, consumption means having access to products and services but not necessarily owning them. Car-riding services, video streaming, and the subscription model for almost any good or service is quickly becoming the norm.

For example, auto manufacturers are renting out vehicles directly to consumers, so instead of selling 100 cars they sell one car to 100 people. The sporting-goods business is transforming by providing access to equipment and coaching vs. just selling sport gear. Companies, to succeed, must  create products, services, and experiences that 'connect' consumers to their brand.
Gen Z - it's all about identity

Singularity: Consumption Expressed As Individual Identity

Gen Z'ers are all about identity. Consumption therefore becomes a means of self-expression vs. adhering to the norms of a group. More importantly, Z'ers are willing to pay more for personalized items. The days of the bespoke are upon us.

To cater to Z'ers, who are always and everywhere online, companies must develop a data strategy that guides what they offer in terms of product/service by collecting and interpreting customer  information - while, at the same time, protecting the privacy of that data.

Companies will have a two-track business model: one for scale and mass production and one for customization catered to specific consumers. Companies will have to become more agile and flexible to survive.

Consumption Steeped in Ethics

More and more, consumers expect brands to 'take a stand'. The goal being to take positions on topics or causes that make sense for the brand. In most cases, these should not be political in nature but  must match the brand's ideals.

Gen Z'ers are well educated about brands: the origins of what they are buying, where it is made, what it is made from, and how it is made. Therefore, marketing, in the digital age, will pose complex challenges as traditional channels of distribution become more fragmented and ever changing.



In Summary

Young generations have always influenced trends and behaviors in societies. For Gen Z'ers the search for truth is at the center of their behavior and consumption patterns and technology has given them unprecedented connectivity and access to information.   For companies, this brings both challenge and opportunity - but a business must be open to it, recognize it, and embrace it.


Jim Lavorato, Principal
Fund-House Ventures
www.fundhouse.com


Tuesday, July 2, 2019

Part #2 Gen Z - How They Differ & Their Impact on Business

In the first part, of this three part series on Generation Z, I addressed the issue of how Z'ers were the first 'all digital' generation - which influenced their views on consumption. In this segment, I further discuss this 'generation gap' and how, going forward, the Gen Z'ers will impact the customer experience and further the employee experience.


Z'ers now largest in terms of population


Gen Gaps

Baby Boomers (those born 1940-59) are best represented by consumption as an expression of ideology. Gen X'ers (1960-79) consumed via status, Millennials (1980-94) consume experiences. For Z'ers, the main consumption motivator is the search for truth. They search for authenticity to gain a greater expression of openness. For Gen Z'ers, the main point is for individuals to experiment with different ways of being themselves and shaping their identity.

For example, Z'ers are religious. 76% of them belong to a mainstream religion but they are also  liberal. So, although they have religious beliefs they also align with non-religious themes.Thus, 20%  do not consider themselves exclusively heterosexual, while 60% think same-sex couples should be allowed to adopt children - both viewpoints polling much higher than prior generations.

Gen Z'ers are always connected, they are 'communaholics. They filter tremendous amounts of information and influences. For them it is the 'self' that needs improving. 7 out of 10 feel it is important to defend causes related to identity, including: race, gender, and sexual preference issues.
Z'ers are very inclusive and don't distinguish between people met online and those met in the physical world.


AD: www.fundhouse.us



39 % of Gen Z'ers  expect companies to answer customer complaints the same day - the three prior generations felt that 52% of companies should fix issues the same day. They are more pragmatic and analytical about their decisions than members of previous generations were. Many are keenly aware of the need to save for the future and see job stability as more important than a high salary. They show a preference for regular employment vs. freelance or part-time work.

In the final segment to this series I'll address the Z'ers consumption and implications for companies.


Jim Lavorato
jlavorato@fundhouse.us
www.fundhouse.com