It's The Customer, Stupid! Lessons Learned In A Lifetime of Marketing
By Ralph Crosby
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About this ebook
Businesses often are started by entrepreneurs with an idea, a product or service, or an expertise. Many of them fail, not because the idea or product isn’t good, but because their attention is overwhelmingly directed internally – e.g., what goes into the product – when they should focus externally, always reminding themselves:
“It’s The Customer, Stupid!”
An organization’s success starts and ends with the customer, a lesson the author learned in a lifetime of marketing. Such lessons were absorbed by the author on the front lines of small businesses he owned or operated, through the teachings of experts and mentors, and from years of strategic marketing for myriad clients at his own marketing agency. Those lessons are the foundation of this book, which covers:
•Knowing who is your customer.
•How to bond with your customer.
•Best practices in the customer-centric process.
•Sending the right message to the customer.
•How to handle one of your best customers – the media.
•Avoiding the myths of marketing.
•Customer engagement in the Internet age.
•New media + old media = The future of marketing.
•Learning from your marketing mistakes.
The author contends that if you are in business – for profit or nonprofit – you must focus on your customers, be they buyers, members, contributors, patients, clients, volunteers, subscribers, employees or any other persons whose satisfaction is key to the organization’s success.
Using examples and stories of both marketing success and failure, this book offers guidance on how to achieve that customer focus and satisfaction.
Ralph Crosby
Ralph Crosby, Chairman and CEO of Crosby Marketing Communications, is the author of the new book, It’s the Customer Stupid! Lessons Learned in a Lifetime of Marketing. Wanting to earn money as a youngster, Crosby took jobs that early on taught him the value of customer loyalty. In his first adult career, as a journalist writing for daily newspapers and national magazines, he learned how to communicate with another type of customer – the reader. An earlier book he edited with commentary, Person-To-Person Management, helped lead him to a new career in marketing. It was then, through hands-on experience and the teachings of such experts as management guru, Peter Drucker, he learned that the end result of business – both for profit or nonprofit organizations – should not be viewed from an internal perspective but from the point of view of the customer. In his latest book Crosby documents his education as a marketer and explains the critical nature of the customer-centric approach in today’s unique marketing environment. He also writes a blog: www.its-the-customer-stupid.com. Today, Crosby Marketing Communications is one of the largest and most successful marketing communications companies in the mid-Atlantic area. The firm serves national and regional clients that are market leaders in various industries, and it is currently ranked #260 on Advertising Age’s list of the country’s 500 largest agencies. Crosby Marketing has offices in Annapolis, Md., and Washington, D.C.
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It's The Customer, Stupid! Lessons Learned In A Lifetime of Marketing - Ralph Crosby
It’s The Customer, Stupid!
Lessons Learned In A Lifetime Of Marketing
Ralph W. Crosby
Smashwords Edition
Copyright 2011 Ralph W. Crosby
Smashwords Edition, License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
Table of Contents
Acknowledgements
Dedication
Foreword
Preface
Chapter 1: Introduction: Prince Valiant And The Katzenjammer Kids – The Education Of A Marketer
Chapter 2: Lessons I Learned From Peter Drucker
Development Of The Customer-Centric Marketing Concept
Chapter 3: Just Who Is Your Customer?
Building Profiles, Databases And Relationships
Chapter 4: How To Handle One Of Your Best Customers
The Media
Chapter 5: How To Bond With Your Customers
Building Brand Loyalty
Chapter 6: Hear Thy Customer. Obey Thy Customer.
Best Practices In The Customer-Centric Process
Chapter 7: Don’t Sell Rotten Fish
Sending The Right Message To The Customer
Chapter 8: AIDA – Marketing’s Selfish Princess
Models For Delivering Creative Messages
Chapter 9: Avoiding The Myths Of Marketing – or –
The Customer Isn’t Always Right!
Chapter 10: The Internet Turns Marketing Topsy-Turvy
Customer Engagement Differs In The Digital Age
Chapter 11: A Marriage Made In Marketing Heaven
New Media + Old Media = The Future of Marketing
Chapter 12: The Ultimate Lesson
Experience Is The Best Teacher, If You Learn From Your Mistakes
Suggested Reading
* * * *
Acknowledgements
I owe a debt of gratitude to a lot of people who inspired me to write this book. Specifically, I want to single out my friends and mentors Tony Mikes and Os Guinness, who contributed directly to its content. Several of my colleagues at Crosby Marketing also contributed, especially the Internet specialists Fred Jorgensen and Matthew Kilmurry, creative designer Ron Ordansa and PR specialist Gillian Pommerehn. My associate Claudia Eaton deserves a medal for keeping the manuscript and publishing matters on track.
My gratitude to my publisher Ken Shelton for his understanding and support. And a special thanks to my eldest daughter, Laura Crosby Avallone, for her professional editing assistance; to my son, Ray Crosby, President of our company, for his encouragement; and to my daughter, Belinda Crosby Butler, whose graphic talents appear in the book. Finally, let me acknowledge the contribution of my wife, Carlotta, for her constant patience and moral support.
Dedication
To my wife, Carlotta, and our children – Laura, Raymond and Belinda – from whom I have learned a lifetime’s lessons of love.
Foreword
I first met Ralph Crosby in 1990 while I was leading a seminar on advertising agency workflow efficiency. He came in, took his seat, and started taking notes. I had never seen anyone with the intensity of purpose he had in taking in all the information that I was putting forth. I had to assume he was serious about making his agency better.
That session led to a relationship that has now lasted nearly 20 years. Ralph’s advertising agency, Crosby Marketing, had only 10 people when I first met him – it now has more than 50 employees. The agency’s rise to be among the top marketing agencies in the country was carefully planned and based on very important and insightful marketing knowledge and practice, much of what Ralph describes in this book.
I believe I have played some small part in Crosby’s growth and success. Ralph joined Second Wind, the advertising agency network I run, shortly after our first meeting, and we communicate regularly about a wide variety of issues, including the profound changes that are taking place in marketing today.
That’s why I am leased to write the foreword to this very important book.
Ralph and I share the opinion that marketing today is very different than marketing was 20 years ago. Back then, the marketer was firmly in control of the marketing process. Car companies, such as Ford or GM, essentially told the consumer what to think. Their advertising and marketing always proclaimed – Buy this! Try this! Do this! And their dealers and salespeople controlled the buying process, keeping select information secret and using that information as a bargaining chip to gain an advantage with the buyer. In other words, don’t let the customers get ahead of you. Try to take advantage of them.
All of this has changed.
Now the consumer challenges the car company. Today’s smart car buyers know everything there is to know about how to negotiate when buying a car; dealer costs, models available, their cars’ value, etc.
Smart marketers know they cannot control their customers anymore. The internet has changed all that.
Today’s consumers are very smart. They don’t want to be sold. They want to choose. The old adverti9sing idiom – the unique selling proposition – has been replaced with the unique buying proposition.
To recall my high school Latin: It used to be caveat emptor, let the buyer beware.
It is now cave emptorem, beware of the buyer.
It is a known fact that today’s consumers trust marketers less and their friends more. That’s why the new social media has blossomed so quickly as not only a social tool, but a business tool as well.
All of this and much more is explored in Ralph’s book, It’s the Customer, Stupid!, a treatise about lessons learned in a lifetime of marketing. Ralph has done a great job of providing an overview of what 21st century marketing will look like, and how businesses need to adjust and adapt to the new realities. All of this in a well-written but casual style, filled with practical examples and real life experiences.
This is a book that will help you succeed in business by listening to the customer and joining in on the conversation, rather than trying to bludgeon people into buying your product or service.
Tony Mikes
Wyomissing, Pennsylvania
Preface
Lucky guy that I am, I have had three exciting and different careers in my life: First as a journalist writing for newspapers and magazines; then as a business owner/manager/marketer; and finally, for the longest period – more than three decades – as owner of one of the largest and most successful ad/PR agencies in the Baltimore-Washington, D.C. region. All of these careers have one thing in common, the need to communicate with an audience, whether to inform a reader, manage employees and sell to customers, help a client move customers to action or change their behavior. In a sense, and we’ll talk more about his later, all of this was marketing. In fact, as Peter Drucker, the father of modern management, said in my favorite quote about marketing: Marketing is much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result; that is, from the customer’s point of view.
When the staff of my ad/PR agency, Crosby Marketing Communications, grew to more than 50, I realized that the newer members didn’t always have access to the concepts that had made us successful. So, I decided to pass along those ideas in short memos I called Ralph’s Tips.
What evolved was a tapestry of best practices woven through years of experience and the wisdom learned from the masters of marketing. As I wrote these Tips,
I recognized that in each there existed a common thread – the customer. Focus on the customer had driven our marketing communications since I founded the company in 1973. That focus is the theme of this book and the reason for its title:
It’s The Customer, Stupid!
Lessons Learned In A Lifetime Of Marketing
I’ve had clients tell me their business was driven by their products, or their management techniques, their personnel or their technology. I’m sorry, but it’s the customer.
The title came to me in the shower one morning (ideas, like songs, always sound great in the shower) as I prepared to go to work. I’m sorry, but it’s the customer, stupid,
I said to myself. Of course, that phrase mimicked the words, It’s the economy, stupid!,
that James Carville, Bill Clinton’s political strategist, used as a central theme to answer the question, What is the presidential campaign about?
This book seeks to answer the question, What is marketing really all about?
As you can see, I claim no originality in the title of this book. But neither can James Carville. His theme was a takeoff on such earlier expressions as the 1970s KISS
advertising formula, which stood for Keep it simple, stupid.
Nor was I the first to parlay Carville’s theme into marketing, as I discovered during my research. In his book The End Of Marketing As We Know It,
published in 1999, Sergio Zyman, noted marketing author and former chief marketing officer at the Coca-Cola Company, used a similar phrase and explained its relevance to marketing very well. He wrote:
"‘It’s the economy, stupid’ became the watch phrase of the (Clinton) campaign and a verbal model used by people everywhere. My version for marketers is:
‘It’s the consumers, stupid.’ If you are in business and your goal is to maximize profits, as it should be, the only way you can succeed is by focusing on, understanding and pleasing consumers. If you don’t do that, you will never be able to succeed."
Sergio Zyman, along with many marketing gurus of the last 50 years – unlike Mr. Zyman, most of them academics or theorists – have created a consensus on the ascendency of the customer’s value in business. What I add is a perspective of the marketer who has seen that value in day-to-day operations – like the foot soldier on the front line executing the strategies formulated by the generals at headquarters. In this book, the reader will find the valuable lessons I’ve learned on the front lines over a lifetime of marketing. Whether my client was a small local restaurant or a giant, global Fortune 100 corporation, keep your eye on the customer
was always the battle cry.
For me, seeing that customer value began at an early age, as explained in the following introduction on the education of a marketer.
Ralph W. Crosby
Annapolis, Maryland
* * * *
Chapter 1: Introduction
Prince Valiant And The Katzenjammer Kids
The Education of a Marketer
Being from a family of modest means, making money was always a goal in my youth. From my snowball stand in summer at age 10 to selling groceries at the local meat market at 18 to help defray the cost of college, work was part of my education.
In between selling snowballs and sirloins, I delivered and sold newspapers. On Saturday nights in the 1940s in my hometown, Annapolis, Maryland, the residents, farmers and watermen would come to Main Street downtown, and several of us youngsters would sell them the Saturday night edition of the Sunday papers, The Baltimore Sun and my favorite, Hearst’s Baltimore News-Post. The latter undoubtedly appealed to me because, unlike the staid old Sun, the outer section of the News-Post was the colorful comics, not the front page.
Because I lived on Main Street, I knew most of the shopkeepers, and some would wait for me to come by with their paper.
I developed a clientele
for the papers, from the genteel ladies in the musty Main Street hat shop; to the proprietor of my favorite spot, the bustling pool room, a block down the street; to the distant cousin who came in from the