Monthly Archives: February 2024

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The Case for Face2Face

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Whether the topic is business or personal, most studies show that between 60 % – 90 % of communication is nonverbal and furthermore, nonverbal communication techniques, for example, tone of voice and physical distance between yourself and the person with whom you are speaking, are intuitively used by all humans. Moreover, within the first few minutes of meeting and speaking with someone, we begin to make decisions about what the other person’s intentions are and figure out if that person is trustworthy and safe to do business or socialize with.

Those study findings throw cold water on the 318.66 million U.S. citizens who in 2023, according to the German data research firm Statista, used the internet to send email and SMS (text) messages, follow social media and join videoconferences to communicate with colleagues, family and friends. Electronic communication platforms are quite convenient but numerous reliable studies show that nonverbal communication signals are challenged to cross the digital divide, causing unspoken but nevertheless relevant nuance to slip through the cracks.

Can any of us know how much of a story may have been lost when told through a digital method? If that’s not enough of a lapse, is a digitally transmitted story more vulnerable to misinterpretation? Nonverbal communication—facial expressions, posture, physical gestures and tone of voice, for example—is a vital component of human communication that can signal how you really feel, despite what you put into words. An awareness and ability to recognize and read the nonverbal communication signals transmitted to you and by you will greatly enhance your communication skills and relationships. In conversations both casual and critical, you want to understand the impact of verbal and nonverbal messages, what you send and what you receive. In their 1972 book Effective Business Communication, Herta A. Murphy, Herbert W. Hildebrandt and Jane P. Thomas noted, “Sometimes nonverbal messages contradict the verbal; often they express true feelings more accurately than the spoken or written language”.

There are three principal elements of nonverbal communication: facial expressions, body language and overall appearance. When speaking with someone it’s important that you are alert to his/her nonverbal gestures, because the story is being told on more than just the verbal channel. In fact, people are more likely to engage you in future conversations and consider having a social or business relationship with you when you recognize and act upon their nonverbal cues. Below are 12 nonverbal communication signals that you may observe, decode and respond to in your next conversation.

Cheerful face and voice

1. With appropriately displayed smiles and nods, you’ll communicate to your conversation counterpart that you are listening to his/her opinions and that you understand and agree with his/her story. Communication experts unanimously agree that listening is the most important communication skill; everyone wants to be heard.

2. Pulitzer Prize winning journalist Charles Duhigg, author of Supercommunicators: The Power of Conversation and the Hidden Language of Connection (February 2024), notes that talking and laughing together is a bonding experience that contributes to relationship-building. Laughing with (but not at) someone promotes a happy mood and is another way to signal that you’re listening to the story.

3. Maintain good eye contact by looking your conversation counterpart(s) in the eye as the two of you talk to, again, display your interest in their story. However, you must periodically pull back the eye contact by taking brief breaks, perhaps to contemplate your next answer, for example. You don’t want your eye contact to be perceived as staring (that is, aggressive).

4. Regulate your voice so that you speak in a pleasant and confident tone that is authoritative yet not intimidating and matches the purpose and topic of the conversation. Speak clearly, enunciate well and pace your speech so that it’s neither too fast nor too slow for the occasion. Avoid raising the pitch of your voice as you end a sentence, as if you are asking a question rather than making a statement.

5. Mirror the other person’s facial expressions to demonstrate that you agree with and like the other person. Mirroring validates the opinions, wants and needs of the person you’re speaking with.

Body talk

6. Align your posture by gently lifting your chest, lifting up from your lower back and straightening your spine. Then, pull your shoulders back but keep them relaxed, so that you don’t look (and feel) tense. Activate your core muscles to support your midsection and comfortably maintain posture. In other words, don’t slouch; instead, communicate that you are cognitively present and ready to communicate and connect.

7. Place your legs hip distance apart when sitting or standing. When sitting, cross your ankles, rather than your legs, to demonstrate that you are relaxed and listening.

8. Leaning in gently is yet another body language gesture that indicates you are listening. As noted above, listening is the most powerful confirmation that signals to the other person that you hear and respect him/her.

9. Mirror the body language that you observe in your counterpart, to signal that you relate to him/her and that you agree with his/her point of view. Smile when s/he smiles; become serious when his/her facial expressions and vocal tone reflects that emotion. You want to communicate that you are on the same wavelength and understand his/her opinion or purpose.

Arms and hands

10. When, for example, the conversation takes place with participants standing—maybe you’re attending an industry expo or maybe you’re at a party—keep arms relaxed at your sides as the other person speaks, to show that you are listening and open to hearing what s/he has to say. It’s often best to keep your arms uncrossed, so that you don’t appear confrontational or intimidating.

Whether sitting or standing, use your hands to gesture while you speak, to enhance your credibility and confirm your engagement with the listener and topic. There is also evidence that using hand gestures while speaking improves your thinking processes. However, take care that hand and arm movements are not overly expansive and distracting.

11. Greet others with a firm handshake–but not too firm. A firm handshake is one of the most important body language moves, because it sets the tone for the entire conversation. Who wants to shake hands and have a conversation with a wet noodle?

12. Be aware and respectful of different cultural greeting and departure practices prior to your meeting. For example, when you greet the person with whom you’ll speak, will you shake hands, bow, or air kiss both cheeks? End the meeting with a firm handshake (or bow, or air kiss on alternate cheeks) and eye contact, to signal that you enjoyed your time and hope to meet again.

Thanks for reading,

Kim

Image: © Erik Arazas. Meeting and greeting with a traditional handshake and nose kiss at the Zayed Grand Mosque in Abu Dhabi during Eid Al Fitr 2012, the festival that celebrates the conclusion of the month-long observance of Ramadan (Ramadan 2024 begins March 10, Eid Al Fitr 2024 is April 9).

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Brand Building: Deliver the Promise

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Can we agree that data driven decisions produce the most favorable outcomes? The mega database of customer info compiled by the World Advertising Research Centre of New York City, USA and London, UK has since 1985 provided powerful information to business leaders and enabled them to develop marketing strategies and campaigns that attract the attention prospective customers and persuade them to try a product or service or persuade existing customers to become frequent users, meaning repeat customers, of a product or service. WARC data points to a product’s brand promise as the definitive ingredient of successful marketing and brand-building campaigns. The right brand promise, one that target customers perceive as memorable, valuable and deliverable, has the power to influence the purchasing behavior of your target customers and convert them to buyers. WARC data also indicates that a well-crafted brand promise not only translates into purchases and sales revenue, but also provides a blueprint that can be used to devise successful marketing strategies and campaigns.

In other words, the key to successful brand-building is a clear and specific brand promise that target customers feel can be fulfilled. Such a brand promise has been shown to result in marketing campaigns that positively impact sales revenue and also help to shape effective marketing strategies and campaigns.

Commit to the brand promise

WARC research shows that brand promises that target customers trust and believe will be delivered result in sales of the product or service. Roger L. Martin, a former dean of the Rotman School of Management at the University of Toronto (Canada) and author of A New Way to Think (2022); Jann Martin Schwartz, founder and Senior Global Director at the LinkedIn B2B Institute and Mimi Turner, head of Europe, Middle East, Africa and Latin America operations at the LinkedIn B2B Institute teamed up to more closely examine the question of effective marketing—how can business owners and leaders make it happen?

Martin, Turner and Schwartz sought to understand the active ingredients, if you will, of a marketing campaign—what makes it successful? The team recognized the potential appeal of the brand promise and they began by classifying WARC marketing campaign data according to whether or not a verifiable brand promise was made to customers. They found that of 2,021 campaigns analyzed, 40% (808) included an obvious brand promise and 60% (1,213) did not.

The first noteworthy finding of their research was campaigns that included a verified brand promise were more persuasive than campaigns with no brand promise in nearly every instance. In measures of brand perception, brand preference and purchase intent, 56% of campaigns offering a brand promise reported improvement. Market penetration increased in 45% of brand promise campaigns and market share increased in 27% of brand promise campaigns. The only metric in which a brand promise did not triumph was in generating social media buzz, where 55% of successful marketing campaigns omitted a brand promise.

Anatomy of a brand promise

As noted above, Turner, Schwartz and Martin started out by confirming the presence of a brand promise the the marketing campaigns; next, they categorized the type of brand promise made in campaigns where one was present. Most (89%) brand promises fit their definition of one or more of the following categories:

  • Emotional.

The researchers were surprised that a feel-good brand promise was the most popular category, with 35% assigned to this type. An emotional brand promise communicates the good feelings that will be experienced by customers who buy and use the product or service. A highly successful example of an emotional brand promise is the famous De Beers “A diamond is forever” marketing campaign brand promise that since 1947 has promised that the endurance of a diamond confirms the permanency and satisfaction of the marriage.

  • Functional

In 32% of the research sample, the brand promise stressed the reliability and functionality of the product or service. The FedEx “When it absolutely, positively has to be there overnight” campaign brand promise of 1978 was so powerful that it resulted in the creation of a new verb—to FedEx. The campaign’s brand promise can also be said to convey an emotional brand promise as well: customers don’t have to worry, because it’s FedEx.

  • Enjoyable to buy

Some companies (22%) took the unusual stance of portraying the enjoyment customers will experience as they shop for and buy a product or service. A good example an enjoyment-based brand promise is provided by the paint maker Sherwin-Williams; the company won the 2022 B2B Grand Prix at the prestigious Cannes Film Festival for its campaign based on an artificial intelligence tool that allows customers to create and choose a paint color by using voice to describe it (“a turquoise like the sea in the Maldives,” for example). Designers and architects swooned and prospective customers were convinced.

After the research team categorized the types of brand promises companies tend to make, they examined factors that make a brand promise strongly appealing to customers. Again, three features dominated successful campaigns:

  • Memorable

Surprisingly, making it known that a company is not the top seller in the marketplace can be highly persuasive. “We’re Avis and we try harder” was the slogan of the second-largest car rental company (after Hertz).  Within a year of its launch, Avis went from losing $3.2 million a year to earning $1.2 million a year. Advertising executives called the campaign the most brilliant of the 20th century.

  • Valuable

Customers must want what the brand promise offers, especially when the promise is communicated and perceived as an upgrade from circumstances that are perceived as unsatisfactory or lackluster. Prospective customers must feel that the value is relevant.

Deliverable

A defining characteristic of a brand promise is that it represents a guarantee; the customer must be able to recognize that the brand promise can be fulfilled and the benefits from its fulfillment will meet expectations. For that reason, making a brand promise is a risk. The research team’s assumption was that brand promises made campaigns were generally fulfilled, based on the success of the marketing campaigns studied.

Brand promise becomes strategy

The insight that effective brand building is anchored in a promise to the customer can do more for a company than just help it invest wisely in marketing. The promise can serve as the guiding principle of the marketing strategy, able to inform all promotional activities. A well-crafted and communicated brand promise is your North Star; creating and executing a brand promise is, the foundation of a strategy. From that brand promise/ strategy, you can understand how the company will beat its competitors, the value that customers see in your products and services, understand how the company position itself in the marketplace.

Below, Martin, Schwartz and Turner leave you with a five-step template that your company can use—a go-to-market brand promise development guide that also functions as the foundation of your marketing strategy. Furthermore, the study provides guidance about resources the company should dedicate to the various aspects of brand building, including which information sheds the most light on customer preferences, how to ensure that the most highly preferred aspects of the brand promise are delivered and how to effectively and efficiently communicating your brand promise.

  1. Step One is to understand customers well enough to know what constitutes memorability and value for them.

2. That understanding leads to Step Two, the development of a brand promise, expressed in a simple but compelling and memorable statement.

 3. In Step Three, your company publicly commits to the brand promise by launching the marketing campaign.

4. In Step Four, your company must communicate the brand promise to the target audience: If it isn’t received by way of the right channels, it can’t be effective.

5. Finally, in Step Five your company must fulfill the brand promise, or the promise will be largely worthless.

This cycle provides guidance about the resources the company must dedicate to the various aspects of brand building. How much should it dedicate to understanding customers? How much to designing and issuing a brand promise? How much to broadcasting and communicating it? And how much to ensuring that the key aspects of the brand promise are delivered? As the company repeats the cycle, it learns more about its strategic challenges and how to account for customer and competitor shifts.

The ultimate goal of a marketing campaign should be to go through the brand promise cycle often enough that your customers stop wondering whether you’ll make good on your promises. Once they assume that you will, they purchase out of habit rather than choice.

Thanks for reading,

Kim

Image: Photographed by James D. Love April 2021. William Hunn’s proposal to Brittney Miller included a helicopter ride over their home city of Atlanta, GA and Ms. Miller choosing one of the five engagement rings presented to her when she accepted his offer of marriage.

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Managing Your Digital Image

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Because the internet plays such a dominant role in life, it’s crucial that you take steps to ensure what’s posted about you is both accurate and positive. Information that appears online and is associated with you—your published content and information that identifies you—is collectively known as your digital identity. This information functions as a virtual introduction to you and tells your online story. Your digital identity is the foundation of your digital image and intended to be an asset. Because what appears online is basically immortal, it’s imperative that your digital image, defined by the published content and other information attached to you and your business entity, is presented in a flattering, trust and confidence-building manner.

It is assumed that prospective clients or employers will search your name and business online before making any meaningful contact to discuss your products or services, so it makes sense to periodically monitor and curate your digital identity to ensure that information is current and represents you well. Your primary objective when editing your info is to corroborate your digital narrative and the talking points you commonly share when meeting with prospective clients or employers. The core function of your digital image and the narrative it communicates is to confirm your credibility and build trust.

According to “Assessing Web3’s Building Blocks,” an article recently published by financial services giant J.P. Morgan that explores digital identity, four factors contribute to the digital identity (listed below). It is incumbent upon you to proactively examine the information included in your digital identity so that your online image and narrative will support your professional experience, education, achievements and, by extension, your personal and business brand.

In addition to ensuring that information is accurate, decide how you want prospects to see you. Remove text and images that don’t reflect your goals or brand. If a friend has posted a not-so-flattering image on a social media site and tagged you, ask him/her to kindly delete it.

  1. Identifiers: Your name, email, addresses and social media handles.
  2. Identity Attributes: Information about you, including educational degrees and employment history.
  3. Reputation: Your online persona, contributions, affiliations and followings.
  4. Digital Collectibles & Assets: Anything you own in digital form, commonly non-fungible tokens.

Always professional

Be mindful to consistently adhere to professional standards whenever communicating electronically, ever aware that text and images posted can remain forever, whether intended for public consumption or personal texts and emails. Be vigilant and safeguard your reputation; avoid committing to writing your uncensored thoughts about potentially sensitive political or religious topics. It may, as well, be wise to avoid expressing your positions on current events. You don’t want to worry about being compromised by a leak and ending up being canceled and in need of expensive and rarely completely effective crisis or reputation management services.

Social media listening and digital presence

It’s important to know what appears in an online search of yourself and it’s a smart idea to periodically consult the major search engines—Google, Bing, AOL, Yahoo and also Yelp, Yellow Pages, or other industry-specific ranking sites that would apply to your entity—and search your name and your business entity to examine the results and assess the quality and reach of your digital presence. To avoid or correct misinformation, take control by claiming and updating an existing listing and, if you like, create a listing for your entity if none appears. Furthermore, make it a practice to regularly conduct a social media audit on yourself, so you can remove problematic content before prospects and competitors see it.

You may also be well-served by investing in a social media listening campaign, a marketing strategy that refers to researching whether positive or negative conversations regarding you, your entity, products and/or services currently appear in social media and other online platforms. Social media listening monitors online channels to detect mentions of your brand, competitive brands and related keywords.

The use of (paid) social media listening tools enables you to gain an accurate understanding of how customers and prospects feel about your products, services and company by discovering what they say on social media channels. Through social listening, you can track all mentions of your brand on social media in real-time and get not only valuable insights into how customers feel about your products or services, but also verify what their pain points are and learn what they’d like to see from you in the future. Social media listening is also an excellent source of competitive intel, as it can monitor competitive brands, trending content and sentiment analysis on topics related to your industry to obtain a comprehensive understanding of what customers and prospects think about your competition.

Social media listening has become a major marketing strategy at national and global brands. It was originally thought that marketers at smaller businesses would not benefit from the practice, mostly because the cost wouldn’t justify the ROI. Yet over the past few years, social media listening is now considered essential and an increasing number of mid-size and small business owners and marketers recognize its value. The biggest motivators are likely greater affordability offered by marketing companies and the explosive growth of online customer engagement fueled by the pandemic shutdown. social media listening data can be used to inform everything from marketing and product strategy to customer service and support, helping you make smarter, data-driven decisions that will have a positive impact on your business’s bottom line. To learn more about social media listening services click: https://www.webfx.com/blog/social-media/social-listening-tools/#:~:text=7%20best%20social%20listening%20tools%20in%202024%201,5.%20Mention%206%206.%20BuzzSumo%207%207.%20Keyhole.

Thanks for reading,

Kim

Image: ©The Bettman Archive. Gloria Swanson (center) as Norma Desmond in Sunset Boulevard (1950). Co-written and directed by Billy Wilder, the film received three Academy Awards, including Best Screenplay/Story.

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On Avoiding A Cash-Flow Crisis

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On any given day, a Freelancer or small business owner might find him/herself in the suffocating grip of a possibly game-changing marketplace challenge. Anything from flood-producing rains to a wily competitor can cause customers to vanish and profit margins to shrink. It’s a nightmare scenario and, obviously, you must do whatever possible to avoid the problem. Stepping up your marketing with a clever campaign and catchy message, to nurture customer relationships and promote your brand, may be an effective response but be aware that money has a role that goes beyond the well known advantage of being a defense against disaster. 

An effective defensive strategy is about more than simply having enough money to outrun your problem. The key to handling money is to treat it as an asset and take steps to manage your cash by following its flow through your business. Do that by studying your sales revenues and accounts receivables, that is, money that flows into your business and also your accounts payable, meaning, the money spent on business expenses such as rent, utilities, payroll and inventory. 

The benefits of vigilant cash-flow management practices are not to be underestimated. According to 2023 data produced by Minneapolis, MN based U.S. Bank, poor cash management and insufficient cash-flow are implicated in 82% of business failures. Poor cash-flow shows its teeth in several ways, including:

  • Cash-flow gaps A cash-flow gap is a frightening emergency that occurs when a business pays expenses, for example, inventory or supplies, but does not receive the expected inflow of money within a reasonable time-frame. A shortfall is a warning that the business needs more cash, in a hurry. Maybe you’re waiting for a customer or two to pay invoices? Consistently expanding cash-flow gaps undermine working capital that can leave your business strapped financially, potentially putting it in a dangerous position if not addressed.
  • Managing seasonal revenue fluctuations  Seasonal businesses frequently face significant cash-flow challenges. A typical example is that of restaurants that operate in summer resort locations. During the peak season of Memorial Day (last week in May) through Labor Day (first week in September), these restaurants welcome an endless stream of customers, who pack the premises and overwhelm staff. Revenues are robust while the peak season lasts but in the off-season, greatly diminished revenues can trigger cash-flow gaps that cause the business struggle to maintain financial stability.
  • Opportunities beyond reach Expecting the unexpected, being agile and ready to act, is among the most valuable leadership qualities of a business owner, whether it’s the owner of a neighborhood dry cleaner to the CEO of a multi-national conglomerate. A business needs to be in a strong financial position to take advantage of interesting opportunities as they arise, whether that’s buying out a competitor, opening a new location, or launching a new product—the ability to act quickly usually makes all the difference. Without sufficient available cash, your growth and expansion plans will be hobbled, causing you to miss the boat on potentially lucrative opportunities.

Loans and credit cards are not the only options

When looking to resolve a cash shortfall, many business owners think of contacting their bank to discuss options for a business loan or credit card. Your business banker is there to support you in many ways but finding a solution to your cash crunch might more logically begin with your bookkeeper or accountant. S/he may not warm to the idea of you taking on debt associated with a loan or an increased line of credit; s/he may be more inclined to recommend that you become more vigilant about your entity’s cash management and make a modest investment in a cash management software package instead.

The power of cash management: cash-flow and forecasting

The purpose of cash management is to ensure that your business is able to pay expenses (accounts payable). Cash-flow management tracks how much money enters the business bank account—e.g., through sales revenue, accounts receivable payments, interest from investments—and leaves the business bank account for accounts payable. Cash management procedures position your business to both monitor expenses (and minimize or eliminate unnecessary expenses), make prudent financial decisions and, hallelujah, create and maintain a healthy cash reserve that will insulate your business from the financial instability. You’ll get your financial house in order and attain the means to pursue business opportunities that can further enhance financial stability.

Cash management software works by shining a light on money problems so that you can take corrective action in a hurry. Cash management software enables the user (you and/or your bookkeeper) to quickly and accurately monitor, analyze and pinpoint cash-flow problems. So, persistently late payments of customer invoices that cripple business cash-flow will be brought to your attention and signal that steps to speed up accounts receivables should be taken. Other cash-flow optimization benefits will likewise be made clear from the data that emerges from your cash management software, including the ability to accurately determine the amount of cash needed to cover accounts payable obligations and create a reasonable forecast of your entity’s future financial health.

Good cash management software will also have cash-flow forecasting capabilities to help you manage cash in the future, by creating “what-if” scenarios that let you evaluate various potential outcomes simultaneously. You’ll also be able to calculate expenses and ensure there is enough incoming cash to pay up. The best cash-flow management software will also have cash-flow forecasting capabilities to help you manage cash in the future and make the future of your business entity bright. Click link to learn how you can get started. https://www.trustradius.com/cash-flow-management

Thanks for reading,

Kim

Image: Mother Counting Money, by Johann Georg Mayer von Bremen (Germany, 1813-1886)