44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder
“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing
“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.” —Marti Barletta, PrimeTime Women
“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants to reach them? Beyond fast food and beer, they don’t buy much of anything. … The theory is that if you ‘get them while they’re young, they’re yours for life.’ What nonsense!” —Marti Barletta, PrimeTime Women
We are the Aussies & Kiwis &Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult &demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your universe for the next twenty-five years. We have arrived!
“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” —Peter Francese, founding publisher, American Demographics
LEAVE IT TO BEAVER.
Trapper: <$20 per beaver pelt. Source: WSJ
wdcp/“Wildlife Damage-control Professional”: $150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ
7X to 40X for “Solution” [rather than “service transaction”]
Up, Up, Up, Up the Value-added Ladder.
$50B+* *IBM Global Services/ “Systems integrator of choice”
Planetary Rainmaker-in-Chief! “Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” —Fortune
“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
California Closets: “a whole-life upgrade, not just a tidy bedroom.” —WSJ/0329.07, “Why the Container- Store Guy Wants to Be Your Therapist”
“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/2004
“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec
(1) LAN Installation Co. (3%)
(2) “Geek Squad” (30%)
(3) Best Buy contracts
(4) Best Buy purchases
(5) Best Buy’s “brand promise”
Source: Best Buy (Circuit City: fire senior, hire junior)
I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.
Huge: Customer Satisfaction versus Customer Success
“Customer Satisfaction” to “Customer Success” “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?” Bob Nardelli, GE Power Systems
“ ‘Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader
“He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life. Because his sole concern had been mywelfare and the success of my business.” —Jim Penman, on learning how to sell (What Will They Franchise Next? The Story of Jim’s Group)
Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture- Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale