Emotion marketing / Six don'ts for effective lead generation / Effective coaching makes better leaders / Three elements of employee equity that boost productivity / Healthy beverages / "Dessert" cigars

EMOTION MARKETING
A 2003 Opinion Research Corporation study found that fewer than 10 percent of consumers felt that any industry was “excellent” in terms of demonstrating that it cares about its customers. Interestingly enough, the most important factor in determining brand loyalty was a belief that a company cares about its customers. If customers feel that a company cares, according to the study, they’re loyal. If they feel neglected, they defect at around 10 to 30 percent per year.

Caring, in many practical cases, boils down to customer service and/or perceived effort—a feeling that the company expended some amount of energy to add value for the customer. Nordstrom is a commonly-cited example of a retailer that is able to extract premium prices while maintaining loyal customers, thanks to its stellar customer service. But a simpler example might be Walgreens, which boasts numerous customer-friendly features like automated prescription refills, 24-hour service, and a satellite network that makes customers’ prescriptions available at any Walgreens nationwide.

Making the effort to engage emotion and engender loyalty is likely to be time well spent. Consider FedEx—two years ago they rolled out an e-card program designed to increase contact between account reps and business customers. The cards spanned the gamut from “Happy Holidays” to “Happy Birthday” to “Get Well Soon.” Not only has the program been popular (most reps report getting replies to their e-cards, with thanks), but FedEx saw a double-digit increase in revenue and volume among the accounts that received the e-cards. And this increase occurs year after year.

Source: Communication World

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SIX DON'TS FOR EFFECTIVE LEAD GENERATION
Want to ensure that you’re able to generate leads effectively and efficiently? Then be sure to heed the following:

1. Don’t be content with just “getting your name out there.”
Advertising should be specific, demonstrating what you can offer your customer. Don’t blow your budget barraging the world with your company’s name, out of reasonable context.

2. Don’t send direct mail or email without a valuable offer.
If you send mail to your clients, make sure your correspondence offers them something of value, like special offers, useful information, or seminars. Junk mail is just junk.

3. Don’t rely on only one tactic.
Your best bet is to build a website, offer informational downloads, follow leads up with a phone call, send newsletters, and so on and so on. Don’t just send a blanket email to everyone in your database and leave it at that.

4. Don’t drop leads.
Remember that most business buyers don’t buy right away. Follow up, follow up, and follow up. Be patient and nurture leads, and eventually, they may become customers.

5. Don’t skip the measurement.
How can you know if a method of lead generation works if you don’t measure it? Stick with a lead-generation tactic for a while and check your metrics on it before deciding to keep it or ditch it.

6. Don’t over-rely on junior people or on rainmakers.
There are some things you can’t delegate. Senior team members will need to stand alongside juniors when pursuing some leads, and “big gun” marketing firms or “rainmakers” won’t usually just “do the job for you.”

The bottom line? Those who control the company are ultimately responsible for lead generation and follow-through, too.

Source: Wellesley Hills Group

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EFFECTIVE COACHING MAKES BETTER LEADERS
The idea of taking company time to coach executives to be more “in tune” with their subordinates may seem touchy-feely. But, many companies feel that the increase in morale, employee retention, and loyalty are well worth both the time and the money.

The CEOs of General Electric and eBay, as well as up-and-coming managers at Genentech and Yahoo!, spend a few hours on the phone each month learning to be better leaders through coaching. Construction company Kitchell, headquartered in Phoenix, Arizona, spends around $200,000 a year on coaching for its top 22 executives, and feels that the money is very well spent.

A large part of a coach’s job is to convince overachievers to work on people skills such as recognizing the feelings of others. One of Kitchell’s executives used to type on his computer while people were in his office talking to him. The CEO used to constantly interrupt people midsentence. Both behaviors have been curtailed, to the delight of colleagues. Coaches encourage managers to greet employees by their first names, to plan interesting or fun events, and to pursue other morale- and team-building strategies. These activities do not come naturally to many executives.

Kichell reports that since using coaches to “soften” formerly abrasive executives, annual turnover is down 19% overall, and is at 4% among younger staffers being coached by senior employees (down from 27% overall).

Source: The Wall Street Journal

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THREE ELEMENTS OF EMPLOYEE EQUITY THAT BOOST PRODUCTIVITY
When employees own a stake in the company, they’re more likely to feel personally motivated to help the company succeed. That sort of can-do attitude is good for business, good for the bottom line, and good for morale. Nurture all three of the following elements of a solid equity model, and your employees will have every reason to do their part in helping the company succeed:

1. Equity ownership In this element of employee equity, employees are given company stock as part of their benefits. When employees can see that their financial position—even in a minor way—rises and falls with those of the company, they’re far more motivated to do their part to help the company succeed.

2. Ownership culture Companies with successful equity models treat their employees like part-owners. Almost all provide financial and status information to employees, and some offer classes in deciphering this information. Others go as far as to ask employee opinions before making decisions. Box manufacturer Atlas Container Corporation asked shop-floor employees to choose between suppliers of a $1 million corrugating machine. Even though executives preferred an Italian machine, they eventually went with the employee consensus and purchased an American-made model.

3. Business discipline At successful equity companies, employees aren’t just offered information on the company’s financial and strategic position. Instead, these people learn, understand, and help to drive the key business disciplines that help the company succeed. The connection between what they do every day and the company’s main drivers is made obvious. If excellent customer service is a key to success, then employees are aware and understand that the service they provide today is directly responsible, in part, for the company’s ultimate position.

Employees will do a job. But by offering them equity in the company, employees become owners—and owners are much more motivated to do their best to help the company succeed.

Source: Harvard Business School

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HEALTHY BEVERAGES
Some of the most significant trends in beverages are being driven by the desire for better health. This should come as no surprise at a time when manufacturers are touting more whole grains and fiber, “digestive-system-healthy” yogurt, and food enriched with various vitamins and minerals.

The surprisingly popular beverage of choice? Water. More and more people perceive water as being the liquid equivalent of whole grains, helping to enhance their body’s function. Bottled water is being subtly flavored for variety (Kraft’s Fruit2O, Aquafina’s FlavorSplash) and occasionally enhanced with “essential vitamins and minerals” (Fruit2O Plus). These waters are also sweetened with Splenda (Sucralose) instead of Aspartame; whether it’s true or not, the fact that Splenda is made from sugar causes consumers to perceive it as healthier than other artificial sweeteners.

And beverages without any artificial sweeteners at all are perceived as healthier still. Those sweetened with fruit juice or not sweetened at all are gaining ground by touting “all natural” claims. Antioxidant-rich teas are also increasingly popular, and some coffees are even being supplemented with herbs and minerals.

Source: Nations’ Restaurant News

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"DESSERT" CIGARS
Leave it to Generation X to inspire flavored cigars that sound like breeds of Snapple; “Extra Ordinary Larry,” “Kuba Kuba,” and “Karma Sutra Splash” are among the flavors offered by Drew Estate and CAO Cigars. While some older smokers have taken to these cigars, they’re popular mainly with younger, Gen-X smokers.

These “dessert” cigars are popular in dedicated cigar bars—where drinkers/diners/smokers will find glass display cases stacked with cigars for sale—but are an equal twist in the business of any bar or restaurant that simply allows or caters to smokers. As is the case with many of their other foods and beverages, these younger cigar smokers are looking for interesting flavors and quality ingredients. . . a “high class” experience they typically seek to accompany with interesting, quality cocktails or coffee service.

CAO Cigars and Drew Estate, while unwilling to reveal the details of their cigar-making methods, hint that the key is using tobacco blends that absorb flavor well. The flavors they then infuse range from crushed coffee beans, to bourbon vanilla, to mango and chocolate mint ice cream. Almost sounds good enough to eat.

Source: Iconoculture.com