How to Get Into Big Data Analytics

Albert Einstein once said “information is not knowledge” and data without context is just organized information.

In essence, data is just people doing stuff.

The true value of data is far beyond obsessions with key performance metrics.

For most businesses, it’s about extracting insights to create value that has the potential to drive innovation to improve products and services.

In fact, more companies are shifting their focus from traditional business intelligence (BI) to predictive analytics – using historical data to predict future events.

Understand the World of Big Data

To put things in perspective, according to IBM “we create 2.5 quintillion bytes of data – so much that 90% of the data in the world today has been created in the last 2 years alone.”

There is so much data coming in at such a high velocity in all types of complexity that this phenomenal we called big data is now a problem for most businesses.

In fact, there are so many challenges in dealing with big data that it’s often hard to process let alone understand.

This is especially true for any business that engages with digital advertising or online marketing.

This is why it’s important to maintain focus on business objectives in addition to all the online marketing tactics because like the author of the book Antifragile, Nassim Taleb wrote, “We’re more fooled by noise than ever before, and it’s because of a nasty phenomenon called “big data.” With big data, researchers have brought cherry-picking to an industrial level. Modernity provides too many variables, but too little data per variable. So the spurious relationships grow much, much faster than real information. In other words: Big data may mean more information, but it also means more false information.”

It’s meaningless if we have the means to analyze the data but the data is wrong to start with.

And of course we also need reliable data which is exactly why Samuel Arbesman, the author of The Half-Life of Facts, encourages us to start thinking about long data.

The point is that whether you’re doing marketing or product development, we need reliable data to help us make better decisions.

How to Get Into Big Data Analytics in Online Marketing

Just like you wouldn’t expect a musician to compose a song without a tune, or a restaurant to open without a menu, you can’t expect to develop a strategy or execute a tactic using data without knowing what you want to achieve.

This is at the core of any data-driven performance marketing – makes decision based on analysis to prove or disprove hypothesis.

It’s about running tests, collecting data, analyzing results to find the story the data seeks to tell.

If we’re going to become better in performance marketing, we also need better tools and processes transform big data into smart data.

Here are 7 ways you can get into big data analytics.

1) Focus on Business Objectives

Don’t collect data because you can, collect data because it’s necessary. Identify the core problems that have to do with meeting business objectives.

Speak the right language to the right people as different stakeholders in business have different goals that they focus on.

If you’re focusing on impressions, clicks, CTRs, and CR, and the person you’re dealing with only cares about ROI, CPL, and CPA you’re going to have a hard time communicating your value.

Learn to translate your data into terms that’s tailored for your audience.

2) Understand Business Infrastructure

Realize that you will need to understand technical infrastructure such as web hosting, data warehousing, and how data flows in and out of business infrastructure.

In addition, recognize that every business utilizes a variety of applications behind the technical infrastructure.

So make sure that you have some basic knowledge of how each of those applications work and what other tools are available to help you integrate more useful t data.

3) Take the Data Science Approach

You need a multitude of skills to stay at the top of your game, but most importantly you need to become a data scientist. This means investing in learning more about statics, analysis, experimentation, and data visualization.

These skill sets are now in high demand as big data proliferates.

Data scientist is about performance marketing, you need to be the one leading the charge in research and delivery of business intelligence.
Ensure your data integrity will be tremendous for segmentation and optimization.

4) Integrate the Entire Conversion Journey

In the search engine marketing world, a conversion means either a sale or a lead. KPIs such as CPL (cost-per-lead), CPO (cost-per-sale), AOV (average order value), or even ROI are typically what SEMs deliver on the frontend.

However; few SEMs talks about lifetime value or backend conversion metrics that enables you to get a clear picture on the full conversion funnel.

For example: if your frontend click-to-lead CR (conversion rate) is 10% at a $30 CPA (cost-per-acquisition) but your backend lead-to-sale CR is 20%, your actual click-to-sale CR is actually just 2% which means your CPA is actually $150.

All businesses want to know their true return on their marketing dollars; this is why if you don’t have the backend data integration, the frontend data can be very misleading.

And if you have the right data integration, you can proceed to optimize towards the most important KPI, which often times is NOT the frontend metrics.

This applies to offline data as well since TV, radio, print, or even billboards can drive traffic to your website, it’s important to take those media cost into consideration. And don’t forget about other cost of sales attributes such as call center or cost from other channels.

5) Leverage Web Analytics

web analytics is a great place to start your data journey. It tells you where people came from, where they clicked, how long they stayed, what pages were visited, and a whole lot more.

Web analytics puts context to your visitors to your site by adding behavioral data that reveals intent. Someone that searched on a branded term will most likely act differently than those that did not. The same applies to the length of the query.

In fact, even Google uses real human raters in addition to its algorithm to rate content because real human experience is what Google’s search engine tries to mimic.

6) Tell a Story via Data Visualization

Human beings are hardwired to pay attention and remember stories more than anything else. And we all know that a picture is worth a thousand words.

So what’s better than translating your data into graphs or diagrams to help you narrate your story?

The idea of you presenting the data is not to confuse your audience but to communicate fully the integrity and the meaning of your analytics so they can understand it, and take action against it.

Storytelling in the context of data visualization depends on how you balance the visual narrative against your target audience’s ability to discover and interpret.

If you’re to produce great data visualization, I highly recommend that you take a look at Edward Segel and Jeffrey Heer’s paper called “Narrative Visualization“, in which they’ve identified three distinct genres of narrative visualization.

7) Start Predictive Analytics

A great example of predictive analytics being deployed can be seen in Google’s Instant Search. It predicts what you’re trying to search before you finish typing to save you 2-5 seconds per search, guide your search, and load search results instantly as you type.

In fact, predictive analytics are what’s powering recommendation engines of companies such as Netflix, Facebook, Amazon, LinkedIn, Match.com, and more!

These predictive analytics are often utilized as conversion optimizing features inside products, such as ad targeting, recommendations, personalizations, and more.

It may sound far beyond our ability to predict the future, but the truth is that predictive analytics is about identifying and exploiting patterns.

The first step is to understand how to leverage techniques in statistics, modeling, and programming.

However; you can start by doing simple projections or forecasting then gradually move into more sophisticated techniques.

You don’t even need anything fancy, just some basic Excel skills will do to get started.

The Take Away: Big data analytics is here to stay.

One of the most fascinating things I get to do at work is to look at data from SMBs to Fortune 50s.

We try prioritize our decisions to spend our client’s investment based on data because it’s what we do – performance marketing.

I can’t stress enough the importance of statistics and its supersets econometrics and data science in solving real life problems.

Great online marketing strategies aren’t just about the tactics on traffic acquisition or conversion rate optimization (CRO); it’s about getting the most out of your marketing dollars.

It requires you to understand the connection between your marketing activities and the broader business objectives.

By integrating rich, relevant business data and powerful analytics, big data allows businesses to quickly assess emerging trends, identify correlations, and take meaningful actions.

How to Get the Best ROI Out of Your Marketing

by Eric Tsai

How to Get the Best ROI Out of Your Marketing

The recent update to Google’s content farm algorithm had SEOs and webmasters scrambling to figure out what’s going on as it affects 12% of the search results in the US.

Even if you’re not a hardcore SEO ninja you should know that Google works hard to purify its search data regularly. After all we’re creating as much information in two days now as we did from the dawn of man through 2003.

In addition, with the announcement of adding social context into the search mix, Google just introduced a whole new set of algorithm in an attempt to make search more social.

If you’re a business, you have to overcome disruptive technologies in order to cope with the rapidly evolving landscape of social media and consumer behaviors.

That makes it even more challenging for modern marketers to get a true ROI (return on investment) out of every marketing dollar.

This is why it’s important than ever to have the right approach to creating your marketing strategy.

If you’re going to invest in online marketing you need to focus on the value of what you’re doing. So here then are some marketing ROI advices that I’ve picked up over the years and feel are most relevant today.

Have short-term goals with a long-term outcome in mind

Would you like to get a ton of traffic?

How about more subscribers? Or perhaps you could use a higher conversion rate?

The problem with those questions is that they’re simply too broad and abstract. When setting your goals for social media, SEO or even content marketing you need to know why you’re doing it and what the “specific” expected outcome would be in a given time frame.

And what does getting that outcome mean for your business?

How does that impact the bottom line?

No, I don’t mean in the number of retweets or Facebook likes, but in dollar figures.

In how long and at what cost?

If you’ve decided to invest in a 12-month campaign, you need to first identify incremental goals that you set out to achieve rather than just eyeing the end result.

Looking at your weekly traffic in a given month won’t tell you much, but give it enough time, you’ll be able to connect the dots between cause and effect, that’s when the story emerges.

Too many businesses abandon what might have been a successful strategy had they stick with the original plan. The trick is to focus on getting that first small success to build momentum and confidence.

Marketing Return on Investment

What are the short-term goals? What are the long-term benefits?

Having a short-term goal allows you to stay on track so you can make adjustments alone the way to get to the final outcome you had in mind.

Think like an analyst, act like a startup

We want to know more about our target customer. We want to know when, where, how and why they clicked on our links.

Historically, customer data is what enable companies to increase the effectiveness of their marketing campaigns. But at what cost?

Information has never been so widely available than it is today. The access to data is virtually free but what’s not free is how you translate data into useful insights.

These insights give us actionable steps to take and put behaviors in buckets.

The thing to remember is that all information and data are lagging indicators. They’re good references to help you develop your strategy but ultimately you’re using rational logic on irrational subject matter – human emotions.

It helps to analyze data but Internet marketing strategy requires adaptability.

This means listening to the market then translate the demands of the business environment into an action plan.

Develop your marketing strategy should be like a startup figuring out how to make money or survive until the next round of funding.

Not only do startups have to be nimble, they have to think creatively without just throwing money at their problems.

Social media is the perfect example. Not every brand is ready to let go of their reputation but the choice no longer belongs to the brand. It’s now in the hands of the customer.

This shift in power changes the relationship between business and its customers.

If you can’t change the customer, you have to change your business. Why not make updates to customer service procedures and distribute responsibility across multiple resources?

Change is hard but no business can stay at the top without staying with the rate of change.

Identify potential risks and rewards

Facebook recently rolled out all new Fan Page designs and now may even be phasing out the Share button entirely so how are you ever going to get your return on investment out of something that’s always changing?

This is where you need to make your planning and risk analysis commensurate with the size of your marketing strategy.

For large scale campaigns, contingency plans are critical. Again it comes down to asking the right questions.

If we put our money in A, what’s going to happen to B? If A works, how will we deal with C?

Pay attention to the risk vs reward metrics and know when to cut your losses if a campaign isn’t delivering the result you want. Don’t let your desire to succeed be the enemy of good judgment.

A good place to start is to have a clear justification on the next step with your team’s support or have outside opinions to help bring clarity to your process. Then establish a measurement framework that can be used to determine the value of your activities.

Needless to say, every marketing strategy has its own risks and rewards.

Ask yourself what’s the best scenario? What’s the worse that can happen?

Remember, most successful marketing strategies only works for a short period of time based on things that don’t account for the constantly evolving nature of the market.

When the next Facebook or Groupon shows up, it’s back to the drawing board developing, testing and executing new strategies.

Although all companies face different degrees of these hurdles, knowing how your customer’s behavior is the key to attenuating organizational risk.

Even CMOs worldwide have a dramatic difference in measuring social media ROI. According the eMarketer. “Asked about social media activities with the highest ROI based on older metrics with less of a focus on the bottom line, CMOs were most likely to say they did not know the return from any channel other than their company’s online community. Even Facebook and ratings and reviews, the two top venues with “significant ROI,” failed to win over more than about 15% of respondents..”

As you can see, marketers are trying to justify the value of site traffic, pages views, positive buzz, fans and followers on the impact of conversions.

There is definitely a shift in the way marketers measure social media ROI because in marketing, EVERYTHING is a test.

Know the weaknesses in your strategy

While there are a ton of free valuable content and strategy out there, that to doesn’t’ mean they’ll fit your needs. This is why some marketing strategies fail because of false assumptions based on irrelevant data.

Businesses usually implement Internet marketing strategies and would ask for help for the one of the following three reasons:

A company tried something, got good results and would like to replicate the result continuously but lacks resources.
The company is stuck and needs help to make their strategy more profitable and/or want some advice on how to do it (i.e. usually this happens if the strategy is no longer working as well as it has in the past or just can’t keep up with all the changes) and
Something happened recently and has hurt the strategy’s performance and the company is desperately seeking answers to understand why everything went wrong (i.e. What? Google changed algorithm again and all our SEO disappeared, please help!)

Which brings up an important point – if you don’t know the weak points in your strategy (and execution), it isn’t because they don’t exist but rather you haven’t discovered them yet!

In my experience, no strategy out there doesn’t have some sort of soft spot (or many) whether it’s because it doesn’t work in some niche markets or the audience just isn’t ready for that concept.

For example, according to a recent USA Today/Gallup poll shows that both Google and Facebook attract young, affluent, and educated Americans in large numbers. More than half of those are under the age of 50 with a college degrees and making more than $90,000 a year.

It may sound like a good idea to go after audience in those channels but looking into further details you’ll find that the report went on to say that the data does not include “how many times a week they visit the sites or how much time they spend on the sites, meaning this analysis gauges raw audience reach rather than engagement.”

This means that the report is only a high-level overview of the types of users that are in those channels. Not a good indicator.

Don’t put all your eggs in one basket when making assumptions.

When necessary purchase useful data will save you time and money if you know how to use data to your advantage.

The take away: When looking at your marketing strategy, identify short-term goals that fits into the long-term ROI is where you’ll find value that matches your bottom line.

Many marketing activities are part of an overall strategy that won’t have immediate or direct impact on sales simply because they’re cumulative activities.

Positive marketing ROI are the results of incremental investment in time, money and resources. Just because some activities aren’t part of an ROI calculation, it doesn’t mean their costs shouldn’t be justified.

At the end, it all comes down to this: Business is about continuous profits (doing meaningful transactions) while marketing is about increase profits over time.

And strategy is a process to implement those profit generating activities for the business to measure the effectiveness of its marketing.

So, next time you’re working on a marketing strategy, take the time to ask yourself this simple question – What’s your long-term desire outcome?

How to Create Your Unforgettable Elevator Pitch

by Eric Tsai

How to Create Your Unforgettable Elevator Pitch

Have you ever tried to tell someone about your online business or your idea for a business, but when you did, their eyes glazed right over?

You feel stupid or self-conscious because you know they’re bored, confused or just don’t get it.

The truth is we’re already inundated with information and overloaded with work everyday that most everything just aren’t that interesting to us.

In fact, most of us happen to think, say and do the same things everyday. We just do it with slight variations.

This is why you can’t help wanting to check your emails, tweets and text messages to see what’s fresh coming down the information pipeline.

It’s human nature.

So how do you talk about what you do in a powerful way that people will not only stop and listen but maintain their attention all the way through?

You need an elevator pitch – a way for you to instantly spark interest from your audience.

Here are a few key elements to a compelling elevator pitch.

Be specific and focus on the problem you solve

Elevator pitch is how you talk about what you do not your personal mission to change the world so focus on the specifics.

The critical mistake that most people make when asked “what do you do” is that they either go with a micro-level answer of telling people their daily tasks at their job (I do accounting) or the macro-level answer of describing the industry they’re in (I’m in IT).

The problem?

Everyone has a different perception of what a compute programmer does or what it means to be working in sales. In fact, the less specific answer you provide the more confusing it gets.

Instead of talking about abstract concepts, focus in on how you help people, specifically, the problem(s) that you solve.

It’s should not be your personal mission to change the world because most people are process-orientated, nobody really cares about what you do; it’s about HOW you do it!

It’s not about selling or using fancy words

Elevator pitch is a way to effectively wake up people from their daily routines and sparks their curiosity so they’re interested to know what you have to offer.

It is not about how you can impress people with jargons that make you sound smart (even though you’re). Great elevator pitches bring awareness to people so it makes sense to them to shift their attention to what you have to say.

Fancy words or phrases often requires your audience to “figure it out” which leads to disconnects and confusion. Stay away from them and use simple words that are easy to understand.

It should sound like something that happens in the real world that’s tangible, external, measurable and specific.

How to create unforgettable elevator pitch

Now that you know the key elements of a compelling elevator pitch, here is a simple template to use when creating your elevator pitch.

Start by saying, “you know how some people have this problem?”

Replace “this problem” with the problem or challenge that you solve.

Then continue with, “well, I offer this solution.”

Replace “this solution” with how the problem is solved.

Do not describe your business or the process of what your product does.

Here is an example.

You know some people have stuff they want to get rid off but don’t want to give it all away for free? Well I offer a website that allows them to auction anything off to the highest bidder. (eBay anyone?)

To take this even further, you could narrow it down to a specific group of people and their problems. The trick is to add some conveniences by using words such as with or without and recaps the entire pitch at the end.

You know how parents after their kids are grown want to get rid of all their baby stuff without giving it all away for nothing?

Well, I offer an online auction website that lets them sell their used baby stuff within a week or we’ll offer to buy it from them. Do you know any parents that want to get paid with their used baby stuff?

Remember, you can tailor the pitch to fit any scenarios or situation depending on your audience. This way you’ll have different versions of your elevator pitch to use when you meet a friend, an investor, a partner or a prospective customer.

So, what do you do?

[This article was published on VentureBeat’s Entrepreneur Corner]

7 Ways To Elevate The Perceived Value Of Your Content

by Eric Tsai

measuring value

Understand how people learn, think and communicate is the key to create effective marketing. In fact, communication is the core of your marketing and if you know how to leverage it, you will be able to elevate the perceived value of your products and services so people are willing to pay higher price for as soon as they see it.

However; it’s often much more counter intuitive than you think. It all comes down to what you say and then how you say it via your communication.

So what is communication?

According to Wikipedia, “…Communication requires that all parties have an area of communicative commonality. There are auditory means, such as speech, song, and tone of voice, and there are nonverbal means, such as body language, sign language, paralanguage, touch, eye contact, through media, i.e., pictures, graphics and sound, and writing.”

In other words the only way to open up the communication channel is by having a common medium, a means to understand and relate the information that’s being communicated.

The problem is everyone has a different style of communicating and learning thus the goal of marketing communication is to eliminate misunderstanding.

For example, when I say the word “car” what kind of car are you picturing in your head? A big SUV or a small sedan? A red sports coupe or a family minivan? Is it a Cadillac or a Lexus?

This is one of the biggest content marketing challenges in today’s attention fighting world especially with barriers such as information overload and attention deficit resulting in loss of concentration and focus on an ongoing basis.

There is a high chance that you’re losing your audience as you speak because everything is moving so fast and people can’t help but want instant information gratification.

As it turns out, in marketing you need to create crystal clear communications that are as specific, tangible, measurable and external as possible.

That’s exactly what great copywriters do, they write compelling stories that builds trust and use words that describe real world situations, things you can see, feel, touch and experience.

And since most purchase decisions are made by the emotional part of our brain, ineffective communication will never result in a sale so it is up to you to position the purchase in his minds.

Here are seven ways to help you build influence by mastering the basics of high perceived value communication:

1. Communicate Like How You Would Speak

If you want people to like and trust you, start by communicating like a normal person in a one on one plain English.

The key is to make your communication frictionless and easy to understand since everyone is not your customer so speak to people about what they want to talk about, in the way that they want to talk about it.

It’s not about being perfect but being authentic and on target to appeal to one market at a time.

2. Create Self-Contained Concept of Your Content

By making your content self-contained, you can reduce complexity while maximizing understandability especially when introducing a new product or a new idea.

This type of content should be modularized, to the point and does not take a lot of time to consume.

First introduce it by bringing the concept to the table then explain it in a practical way that conveys the outcome that your prospect want and finally connect the dots for them and wrap it up.

3. Look For Pain And Urgency

When people have unmet needs they become more idealistic about their situation.

Not only will they believe that they know what they need to solve the problem but will start to think in simple terms to get to their solution.

Focus on delivering simple action steps that would provide the result they want predictably and consistently with as little risk and hassle as possible.

Do you know what thoughts, emotions or pictures pop up in their head when they encounter that exact pain or problem?

Connect on high pain and urgency values will instantly grab their attention.

4. Translate What You Do With What They Value

Realize what motivates your customers is one of the most effective way to get them to take actions. You must be able to communicate the value of what they want and realize the meaning of their desire outcome and its direct impact to their lives.

Translate it in all 3 currencies they want: monetary value, time investment value and labor/workload value.

5. Use Powerful Reframes To Increase Understandability

Leverage psychologies, histories, insights and stories to frame your content into high perceived value formats. Involve their situation in multiple perspectives will dramatically increase the specificity of your communication.

It will also likely increase the memorability and appeal of your products by structuring and organizing them into alternative frameworks that eliminates misunderstanding. It’s saying the same thing in many different ways.

6. Provide The Why, What and How To’s

In order to do that you must be on top of your customer’s emotional drivers knowing what benefits they’re looking for and what value meanings to them.

Incorporate the why, the what and how into your stories.

Explain to your customer why they should pay attention to you right now then introduce what it is, the actual product or services they’re going to get, and finally how to get the result they want with what they get, the step by step recipe.

7 Minimize Risk Maximize confidence

Getting customers to take the action to buy is about making everything “believable.” It is not simply about taking all the risk out but just enough that it doesn’t seem too good to be true.

It’s leading with the giving hand, earning trust over time and building reputation slowly via social proof.

Allowing your prospects to come to their own conclusion that leads to their own decision is a very powerful confident booster.

It’s both emotional and psychological commitment.

The take away: People want stories, techniques and someone that “gets them.” High perceived-value communication should include all those ideas. Then you roll them up in an easy to digest package full of incentives with the promise of great value.

Give your market what they want and you will be rewards with brand loyalty and market share.

At the end of the day it’s ok that you don’t speak to everyone, you only need to resonate with those that get you that you get them.

Effective marketing is not about manipulation, it’s about being human, it will multiply your sales.

The 6 Habits Of Highly Effective Marketers

by Eric Tsai

Most business owners, experts and professionals understand the importance of providing non-promotional, educational content during the beginning of the relationship with a customer.

In essence, content marketing is information marketing, and information marketing is the new currency on the Internet. The challenge is how to translate your information into products with high perceived value.

It’s indicative that every business can now be called an information business because we all need some kind of information to make our decisions, learn how to solve our problems or to help us get what we want in life.

Simply put we want our physical, emotional, mental, and spiritual needs met in order to take actions.

And getting people to take action through marketing is the most valuable skill anyone can learn and master. (Not to mention it’ll also improve your interpersonal relationships and communication skills.)

This is why great marketers focus on communicating the value and translating the utility of the information. Whether the goal is to get the prospect to click on your website link, sign up for your newsletter, join your coaching program or buy your information product, it requires meeting the right balance of Needs versus Wants from the prospect’s perspective.

Done right, you can leverage powerful internet tools to attract pre-interested and pre-motivated prospects that are ready to buy and start a business relationship with you.

Not only will you be perceived as an influential authority but you will gain credibility and trust without having to convince people to buy your product.

So what does it take to be an effective marketer today? Here are six traits of highly effective marketers:

1. Effective Marketers Make No Assumptions

People often don’t question their own assumptions about what will work.

Majority of the entrepreneurs, experts, marketers like to spill out their solution without asking what exactly their customers “think they want” that can solve their problems.

Imagine a doctor telling you what’s wrong with you by just looking at you from a distance. Even if the doctor has the correct diagnose, would you trust their advice? Great marketers know that they don’t know what they don’t know. They ask questions and dig deeper below the surface to identity the pain, urgency and frustration of their customers.

In addition to finding out what the problems are, it can also serve as your free market research.

Start talking to all your prospects and customers everyday and continue asking why until you get to the root cause, you may be surprise what’s going on inside their reality.

Take a look at this recent research insight provided by MarketingSherpa and IDG from surveying buyers and B2B marketers about specific factors that motivate recipients to opt-in, open and engage with vendor email.

Notice the difference between what marketer and buyer values. Buyers actually gave the highest rank to promotional content!

2. Effective Marketers Are Storytellers

Once you have identified your customer’s problems, help them make the logical connection between their needs and your solution (product or services) one step at a time.

This way they don’t have to work to figure out how to use your knowledge or expertise to solve their problem; instead you reverse engineer your solution from their problems.

Top marketers know how to connect the dots by using narrative to set the quickly get people’s attention. It’s one of the 3 most effective content marketing techniques you can use.

The idea is to ensure your solution sounds exactly like what’s going to solve their problem when you finally get to introduce it typically “at the end” so it’s easier to digest.

Keep in mind that you should never present your solution prematurely, it will only create disconnects which leads to distrust.

Maintaining the communication channel open is critical in facilitating the buying process because people don’t care about your products and services, they just care about themselves. So even with storytelling, guest who’s perspective and story do customers like to hear? (Hint: read the last sentence again.)

3. Effective Marketers Build Relationships

What is relationship and why important?

Everyone talks about relationship but what exactly is relationship?

Here is the definition of relationship from Wikipedia: “Relationships usually involve some level of interdependence. People in a relationship tend to influence each other, share their thoughts and feelings, and engage in activities together. Because of this interdependence, most things that change or impact one member of the relationship will have some level of impact on the other member.”

So a relationship can impact one another mentally, physically and emotionally.

This is why social media is a great way to relate with each other to see if the other person is like you, identify a common ground to connect via LinkedIn, follow on Twitter and “friend” on Facebook.

In fact, a relationship is a process to continue to relate until we feel related, full of emotions and thoughts of the other person.

A critical mistake many struggling experts, marketers and business owners make is thinking of their customers as “its” they can manipulate. Wrong!

Great marketers focus on building relationship to have trust, admiration and credibility that extends beyond business transactions not to mention people will buy more and refer to from those they like and trust.

4. Effective Marketers Are Givers

People often forget that trust is earned over time typically on a more intimate level. In order to introduce your great product or services, you need to earn the right to ask for the sell.

This is the framework of the “freemium” business model, where you offer so much value to your prospect that their respect for you goes up instantly.

This requires you to supply relevant content or information and ultimately give away your best stuff to show that you’ve got the goods! (Do you?)

This feels counter-intuitive to most experts and business owners because they feel like they’ve earn the right to charge for their expertise or services through years of experience or training.

The problem is they, the customers, don’t know and won’t believe that you’re in their best interest until they get to know you.

Effective marketers aren’t afraid to give away their best stuff because knowing how to drive a car doesn’t mean you’ll win a race even if you start with the fastest car.

Authors like Seth Godin, Yaro Starak, Brian Clark, Michael Steizner and Darren Rowse are great example of over-delivering their value so when it’s time to ask for a sale, readers usually come to expect and respect what they bring to the table.

5. Effective Marketers Know Everything Is A Test

Today, the market moves so fast that it’s important to understand the real goal of marketing is to focus on the long-term strategies to get customers.

There is no silver bullet that will bring you sustainable instant results. In fact, it’s vital to have the right mindset knowing that every action you take is to validate your ideas from fact gathering.

Great marketers do not hold their ego to their chest; they look for facts and data that enable them to make incremental improvements.

This is why direct response marketing delivers better results than institutional branding and advertising.

They have different appeals with different purpose but direct marketing is more effective in small to medium size business than branding or making logos and websites “look nice.”

Your investment in marketing efforts should always be measurable in some ways, think of it as making progress not perfection.

The best marketing ROI is about profiting from the time and money invested in your tests! You would test the water before you jump into the pool or drink a hot soup right?

6. Effective Marketers Are Laser Focused On A Niche

Successful marketer choose a niche and stick to it. They inject all the experience, knowledge, theories and ideas they have and consistently create content around it.

Everything is narrowly focused so it speaks to those that are looking for solutions in that topic.

They deliver bite size chunks of information to ensure that their audience learn and take actions. Ultimately it’s about delivering value that are solutions not just suggestions.

Since people aren’t good at valuing anything with out learning (more information again), top marketers knows to create techniques or systems that enable the prospects to understand the value of the solution.

Simply put, great niche marketing minimizes misunderstand and delivers high value information that pushes the buy button.

And to do that, it requires focusing on the needs of the customer without assumptions. (goes back to#1 above)

A great method to do that is to learn Neil Rackham’s SPIN Selling technique by focusing on asking the right Situational questions (find out what’s going on), Problem questions (challenges happening), Implication questions(what the challenge implies) and the Needs-payoff questions (the price tag on solving the challenge).

The take away: Marketing is a skill that you can learn and should be practiced everyday. In fact, thanks to the internet today there is very little barrier to entry for anyone to do marketing.

The information are all out there, you just need to follow some simple steps to start marketing your product, services or your personal brand.

The six traits are the building blocks to form powerful influence which is explained by Robert Cialdini’s book Influence: The Psychology of Persuasion as ethical persuasion in reciprocity, scarcity, liking, authority, social proof, and commitment/consistency.

What do you think the most important trait of a marketer is? What worked well or not so well for you?

If you like to become a more effective marketer or learn more tips on how to market your business, sign up for my Profitable Knowledge FREE course below.

The 3 Most Effective Content Marketing Principles

by Eric Tsai

It will be increasingly difficult to grab attention from anyone on the Internet or in person.

You may spend hours writing a great blog article, creating a high-value video or designing your marketing slicks only to find that people just aren’t interested in consuming them.

Why?

Because we’re being bombarded by messages, alerts, and feeds every second. We’re constantly distracted and interrupted when we invest our time on the Internet. As a result, our brain essentially reconfigures itself.

This is what Nicholas Carr, the author of the book The Shallows: What the Internet Is Doing to Our Brains, found when he studies how the Internet influences the brain and its neural pathways.

Basically he discovered that the mental and social transformation created by our new electronic environment makes us shallower, unable to concentrate and strips our ability to do deep creative thinking.

Carr argues that,” We want to be interrupted, because each interruption brings us a valuable piece of information… And so we ask the Internet to keep interrupting us, in ever more and different ways. We willingly accept the loss of concentration and focus, the division of our attention and the fragmentation of our thoughts, in return for the wealth of compelling or at least diverting information we receive. Tuning out is not an option many of us would consider.”

Simply put, greater access to knowledge is not the same as greater knowledge; and breadth of knowledge is not the same as depth of knowledge.

So how does this affect your marketing or how you produce content for your business?

The answer is simple. If you don’t produce content in the way that people want to consume them, you will not be read, remembered or passed on.

Most of us simply don’t read and retain what we consume over the Internet like how we do it with physical books.

In fact, I heard one of Carr’s recent interview as he described that most people read over the Internet in a “F” formation, scanning horizontally across at the top, then moves down the left and half way down scans again across.

It’s indicative that in the process of producing compelling content you take consideration in the following mistakes to avoid so you have attractive “looking” content in format, length and appeal.

1 Strong Opening That Gets Straight To The Point

Great copywriting is not different than great public speaking. You must instantly grab people’s attention in a thought provoking way without trying to be fancy.

This is why article/book titles, the first 10 seconds of you meeting someone are so critical to set the tone for your audience.

Your audience’s mind wants to see the payoff by giving you the attention and their emotions are driving the need for you to get to the point.

This is extremely important as we humans do a lot of consequential thinking to figure out why we’re investing our time in consuming information.

Most experienced professional coaches, consultants, marketers, gurus or trainers have a lot of knowledge, but they often forget that they are the expert and their audience are not!

That’s why it’s important to open with a great title or introduction that immediately gets to the point.

The wealth of information out there usually overwhelms normal people, so I recommend you to focus on emotional connections so you can meet them where they’re at and try not to use any of your professional jargon. It takes practice.

2 Use Emotional Keywords And Phrases

Give them what they want then facilitate what they need as the content unfolds. Leverage emotional keywords and phrases that automatically paints a specific picture and are easy to understand.

When you use complex, difficult to understand phrases, your audience has to do all the work to figure out what you mean and it interrupts the flow of consuming that piece of information.

Stay away from theoretical, conceptual, abstract and general terms in your communication. Focus on communication that brings concrete, emotional and specific outcomes. This is because we’re wired to respond more with what Paul MacLean discovered as our reptilian brain or what some calls lizard brain.

MacLean’s evolutionary triune brain theory suggests that the human brain was made up of three brains: reptilian (self preservation), limbic (emotions) and neocortex (logic).

I won’t go into the details but basically the reptilian brain can hijack the higher levels whenever it wants to do so especially when there is a pain point or urgency to solve a problem.

It can be as simple as the “need to know” urgency where you seek immediate knowledge (we want to be in control, our logical ego) or looking for an answer.

People don’t go to seminars, watch videos or engage in a conversation with you for no reason; even entertainment and the need to connect or to be heard is something we unconsciously look for.

3 Leverage Powerful Stories That Creates Your Marketing And Conversation

Story develops relationships with people. In order to do that people have to like you, know you and trust you (and yes, you can do that over the Internet).

Just having social proof is not enough, just being a likeable person is not enough.

Both of those are great foundation to build your relationship on, but ultimately people are more likely to buy what you sell if they trust you.

And trust can be built via powerful stories that motivates and inspires people.

When developing your story think of your story as a movie.

There is an opening, a situational challenge and then it goes through a rollercoaster ride that eventually hits a turning point then finally ends.

So how do you position your story?

You need to start your story high where everything is normal then take your audience to a low point where they can relate and connect but don’t make people feel sorry for you.

And then through a turning point or a series of events you overcome the lows and that’s where you give your audience hope.

It is NOT about you but your audience. Don’t make it your life long story or biography; focus on a specific area of your story that allows people to quickly learn about who you are.

Your story is a way to show your humanity so people believe what you can do for them.

The take away: Content marketing is about creating information that are meaningful to your audience and engages them emotionally.

The real value is when you’re able to meet them where they’re at psychologically and make them highly motivated to take actions.

Whether it’s signing up for your newsletter, buy your product, get your coaching or read your book. In fact, it can also be used to get your internal team on board or management buy-in to your proposal.

Everyone is inundated with information, overwhelmed with daily tasks and if you can focus on the 3 principles above, your audience will be drawn to you more because you make it about them and easy for them.

How do you approach marketing your information, content or product? Share your thoughts below.

10 Reasons Why You Are Not Getting The Results You Want Out Of Your Marketing

by Eric Tsai

You spent countless hours crafting your marketing campaign investing money and hiring marketing experts to help guide you through the process. You get ready to push the launch button, waiting for emails and phone calls come pouring in, then…

Nothing happens. But what could go wrong?

You did the things that the marketing “experts” said you should do with your keywords, putting up blog articles day after day, uploading videos and sending out email newsletters.

Why?

Here are 10 reasons why you’re not getting the attention, buzz and most importantly – the sales conversion. Oh, and let’s assume you have an unbelievable product.

Your marketing message is full of “I” and “me” instead of “you.”
You didn’t communicate the “why” (from the “I” perspective)
You didn’t communicate the “what” (again from the “I” perspective)
You didn’t communicate the “how” (need I say more from which perspective?)
You didn’t communicate the “what if” (as in what if “I” was to buy and use the product)
Your marketing talks at people about your own expertise instead of showing them how your solution solves their problem.
You make assumptions about your customers (because you already sold some products before or you just know because you’ve been doing it for 20 years, ok great continue to do that then) instead of focusing on fact gathering (read my last post on listening)
You didn’t do enough testing on your products, services or marketing messages before you launch
You use all your email and social media as a one way push advertising instead of two way conversation (to help you pre-test)
You lack compassion and didn’t empathize with your prospects because you’re too focused on the bottom line – making money

The talk away: Don’t be all things to all people. You’ll have a better opportunity to convert sales (subscription, readership etc.) if you narrow down your target market because you’re a big fish in a small pond so just go after more small ponds! Don’t swim with the sharks in the big ocean because chances are, you’ll become their lunch.

Ask yourself if your marketing message is tangible, external, specific and measurable to your target prospect? And try NOT to use the word “I” or “me” in your message.

Here is one of my all time favorite (and world famous ad) created by the genius David Ogilvy. Notice how many “I” or “me” were used in this ad – none. Focus on the title and you’ll learn how this 1959 ad is still the foundation of today’s direct response marketing.

Reputation Management Using Social Media

by Eric Tsai

Recently I purchased a new vehicle and was excited about the whole experience. I’ve had many cars in the past and the part that always annoys me is feeling the pressure to buy from the sales people on the floor.

But this one is different.

It was like two friends talking about cars and with no initiation about buying. She wasn’t worry about selling.

Obviously I purchased the car and about 3 weeks later I had to go in for some service and again the experience was painless and I even got a loaner car to drive for a few days.

I was so thrilled that I wanted to endorse them by leaving reviews on their social network profile. Then I discovered a string of negative reviews online and what’s worse is that they received an average of 2 out of 5 stars on multiple websites.

So I called the sales person that sold me the car and she said she will help me pass it to her corporate marketing executive. Below is a slightly altered version to keep both the dealership and sales person confidential:

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Dear Jenny (not real name)

I’m a happy customer because I had a great experience buying a vehicle from you. It was enjoyable and I felt no pressure or that I wasn’t been judged.

When I came in for a service a month later, your service department was superb not to mention I can talk to the technician forever. The car was serviced promptly and the entire process was painless.

With such exceptional service and people, why is it that your dealership only gets

3 out of 5 stars from Google?
2.5 out of 5 stars from Yelp?
3 out of 5 stars from Edmunds?

The reason is simple. No one is managing your company’s reputation online.

People typically would only review something when they’re either excited, happy, satisfied or vice versa; frustrated, angry or dissatisfied. Looking at some of the reviews you will find YOUR NAME is all over the positive side, which is the reason why not all the reviews are negative.

As you can see the negative reviews out weights the positive reviews. Nobody from your company is defending the dealership brand and it’s unfortunate because your car manufacturer makes a product that practically sells itself.

But does your dealership have any loyal fans that would refuse to go to other dealerships because they love you guys so much? Does your dealership have any advocates internally or externally that promotes the positive things about your company?

Does your management care? And what are they doing about it? Is the entire business run on listing cars on websites, classifieds, and print advertising? Then why should I come back to buy my second and third vehicle from you?

There is NOTHING on your website that shows credibility of your great sales people, hardworking service advisers, happy technicians or a sense of strong community. Just bunch of product photos, inventory listing and resources that every other car dealership has on their website.

How can I trust your brand? I only walked in your dealership knowing there is a deal NOT because I know Jenny Smith, the awesome sales person was there. If your dealership competes ONLY on price, then it’ll be very difficult to build value in the business because there won’t be any long-term customer relationship forged that way. And that’s not what your GM wrote to me in his thank you email.

Unless you’re selling a commodity such as water, people don’t buy what you sell, they buy the experience! And even water brands are working hard to differentiate from the competition, what marketing efforts are you doing to differentiate? What reasons are you giving me to talk about your company and your people?

Now, would I recommend your dealership? Sure but I would tell people to ask for Jenny in sales and Kevin in service.

Sincerely,

Eric Tsai

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Reputation Management is Marketing

It should come to no surprise that reputation management is marketing. And crisis management cross over to reputation management as well, thus it should be considered as marketing too.

Take a look at the recent two big crisis for these two brands: Tiger Woods and Toyota. One is a billion dollar personal brand and the other one is a multi-billion dollar consumer products brands.

For Tiger Woods, he opted to go with the silent treatment, laying low to let things wane a bit and the conversation just kept going. Even after his public statement, the damage has already been done, sponsors dropped him and fans still skeptical on his integrity.

With Toyota, it’s indicative that there is no magic solution to fix a fundamental problem on a technical issue on the accelerator. The key is to manage the crisis in a way to mitigate negative press going viral as it did on Twitter just check the #Toyota hashtag.

According to AdAge, “on Jan. 22, the day after the recall, buzz within the social web skyrocketed, with the number of posts about the automaker going from less than 100 to over 3,200. With the stop-sale announcement four days later, online chatter shot from about 500 posts that morning to more than 3,000 by that afternoon.”

In both cases, the respond time is just as critical as what’s been communicated.

As we continue to transition to the social and relationship-focused era, companies will no longer be able to ignore social media and online marketing because the truth of the matter is the more social you are and the more transparency you expose, you’re more likely to convert the sales and retain loyalty.

And if you’re able to provide a community for your fans, customers, staff or even vendors to interact and engage with each other, they’re also more likely to buy repeatedly not to mention providing you with referral business as well.

According to the latest report from Chadwick Martin Bailey and iModerate, “social friends and followers feel more inclined to purchase from the brands they are fans of… 60% of respondents claimed their Facebook fandom increased the chance they would recommend a brand to a friend. Among Twitter followers, that proportion rose to nearly 8 in 10.”

Social Networks Continue to Grow

And it helps that social network giant like Facebook is now just as popular as Google according to Hitwise,”Facebook reached an important milestone for the week ending March 13, 2010 and surpassed Google in the US to become the most visited website for the week… Together Facebook.com and Google.com accounted for 14% of all US Internet visits last week. ”

Just look at the chart below and you’ll see how Facebook have exploded while Google maintains its steady traffic. Why the exponential? For one, Facebook is a great way to get started with social media since most people will already have a couple of hundred friends that they can talk to about anything.

For businesses in the offline world to reach customers they would have to make hundreds if not thousands of phone calls or send out loads of flyers that would cost lots of money and resource. Now companies can do that a couple of times a day for free through a Facebook page or a Twitter tweet.

The take away: All businesses should start exploring with social media to find their sweet spot. Traditional media channel such as advertising on TV, magazines or billboards can still be expensive with unpredictable results. Social media has a low barrier to entry (yes it’s cheap) and allows you to meet people in a fraction of the time that it would take in the real world to start building meaningful relationships.

However; you must factor in the the resources and time spent on social media marketing, because it can get out of hand which can lead to inefficiency and ultimately costing you more.

You don’t even need to have a profile on every social network like Facebook, Twitter or LinkedIn. Simply focus on one that you’re comfortable with, develop a process in which you can implement a systematic approach and see what results you get. If you get the result you like, keep doing it. If you don’t, try something else.

Whether you like it or not, people will continue to talk about your brand and you can either choose to ignore it or do something about it.

How Augmented Reality Affects Marketing

by Eric Tsai

I received some feedback and questions on Augmented Reality (AR) after my last post and thought to provide some additional inspiring ideas with regards to where AR is heading. The best example can be seen from Yelp’s Monocle app that allows users to see location-based reviews from their iPhone screens.

The result is crowd sourced commerce with social proof data to enhance purchasing decisions on the spot. It’s an integration of social media with physical space to bring relevant information based of our physical behaviors such as the places we’ve visit or the reviews we’ve posted online.

This new technology integrates real-time social networks, location-based tracking, and the semantic web to aggregate qualitative data. Information you want will run towards you instead of the other way around, fully customized to your personal taste based on your friends, location, and how you search online. The cultural ramifications represents a step forward towards artificial intelligence.

As for marketers, it’s important to monitor how consumers and businesses interact with AR technology that creates deeper and more meaningful engagements which may lead to new marketing opportunities. However, everything does hinges on privacy policy so it’ll be highly regulated on what information can be abstracted.

The fact is, consumers are more incline to take action if the ads are what they want to see from providing coupons to what’s on sale at the moment on location. From a brand’s perspective, it helps to improve data quality to deliver impactful, targeted integrated marketing campaigns enabling a dynamic social commercial connection through multiple touchpoints. It improves the branded experience.

If you haven’t look into AR, I suggest you to checkout some of the examples below.

Here is a demo at TED2010, where Blaise Aguera y Arcas demos new augmented-reality mapping technology from Microsoft. This one shows you how far technology can go, very inspiring.

As augmented reality applications get better, and people have the ability to aim their camera at any real world object and get real-time information on the fly, it’ll be interesting how consumers will take interest in utilizing this feature. Here is an alternative way to improve online shopping experience using AR.

Augmented reality on print is probably the simplest to start, the idea is to integrate the AR with your offline marketing activities as part of the sequential advertising to tell your story like the examples I’ve provided in the last post. For brand experience, a great example is the Adidas Augmented Reality Sneaker Experience.

I think it’s worth reviewing the cost of integrating such concept on a smaller scale just to keep an eye on it. Ultimately it’s another touchpoint marketers can use as part of an advertising campaign but also an added element in abstracting ROI. I welcome any thoughts on this, what do you think?

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