Seth Godin recently did what Seth Godin does: he wrote an ultra-concise post that provokes long-term thinking. Here are the choicest bits:
The work you do when you spread the word or run an ad or invent a policy is likely aimed at one of these four groups.
- Strangers are customers to be, but not yet
- Critics are those that would speak ill of you, or need to be converted
- Friends are those that might have given permission, or even buy now and then
- Fans are members of your tribe, supporters and insiders
[snip]
Before you launch anything, run down the list. How can you optimize for the group you truly care about? How much is that optimization worth? (Hint: a new true fan is worth a thousand times as much as a slightly mollified critic).
This short point immediately reminded me of my all-time favorite anecdote about business strategy. Here it is, a quick excerpt from the June 1, 2009 issue of The New Yorker, in an article titled “Slim’s Time,” about Carlos Slim and his effort to purchase The New York Times:
“In my early days as an editor, I had someone explain to me the marketing strategy of the Times,” [executive editor Bill] Keller recalled. “What most newspapers do when they want to expand is to conduct a survey of people who don’t read their paper and ask, ‘What would make you like our paper better? What could we change to appeal to you?’ Then they go out and add the advice column or the comic strip–whatever it was that the nonreader said he wanted. The Times‘ approach was to go find our most loyal readers–who say they couldn’t live without it, they read it every day–and to profile those people. Who are they? The strategy was to find more people like that, to define ourselves demographically, not geographically. The whole marketing apparatus was out there looking for people who want what we’re doing. The commitment to solid journalism wasn’t just a slogan. It was a sound business proposition.”
I think it’s clear what approach The Times takes. The confidence the paper has in its product is amazing. They know they have the best product in the field, and they just try to find more people who would appreciate what they have to offer.
It’s a sound strategy, and while it may seem to be applicable only for market leaders, it’s an important lesson no matter where your business finds itself. Figure out what you do well, and focus on that. Don’t water down yourself or your product.
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- Einstein Bros. Gives Away Bagels to Facebook Fans
- Marketing Through Education: A Lesson From New York Real Estate
- Does Negative Internet Publicity Work? [Updated]
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