M & A Rainmaker

Lichfield businesses have been subjected to an incredible outbreak of Wahooliganism. Wahooliganism first emerged in Minneapolis in the U.S. last year and then spread globally via highly connected individuals and internet influencers.

It gained serious Klout along the way but suffered a setback in early February. It is expected to re-emerge over the coming weeks stronger than ever and businesses in Lichfield and indeed globally are advised to prepare.

What is Wahooliganism ??

A short description proffered by Wahooly founder Dana Severson is  ” Accelerating Start-up growth through online influence. “

There’s a good description of Wahooly in TechCrunch here:

http://techcrunch.com/2012/02/01/wahooly-launches-its-crowdfunding-experiment-with-first-3-startups-ready-for-social-capital/

Wahooly ( a start-up itself ) is helping it’s first 3 start-up’s ( actually on the website there are 4 now – http://wahooly.com/ ) to gain traction by having ” influential people ” invest time, effort and skills in them and promote them on a global basis.

Does this actually work ???

Well I think it does. Word of Mouth Marketing,Networking and Referrals are established ways of ” getting the word out ” and ” growing the business “.

For those of you who have read Gladwell’s ” The Tipping Point ” you will know that “The success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts.” These people are Connectors, Mavens and Salespeople.

According to Gladwell, economists call this the “80/20 Principle, which is the idea that in any situation roughly 80 percent of the ‘work’ will be done by 20 percent of the participants.”

The 20% are defined by Klout ( arguably ) as those who have a Klout score of greater than 45. ( Klout is only one company that is measuring Internet ” influence ).

This is not really rocket science – you get influential people ( in real life and virtual life ) to promote your company, products and services and this helps you grow your business.

Let’s take two examples:

Twylah ( http://www.twylah.com/ )

Twylah is a company that wants to take your Twitter Tweets and ” Tell your story and get you noticed ” by making an awesome looking website out of your Tweets. Twylah is based in San Franciso and is a start-up with co-founders Kelly and Eric Kim. Kelly is the community manager for Twylah and the marketing face of @Twylah.

Twylah has some VERY famous clients already ( see http://www.twylah.com/featured ) which include Lady GaGa, Britney Spears, Bon Jovi and Arnold Shwarzenegger !! This might give you the impression that only famous people need apply ! Here is David Skok of Matrix Partners Twylah page http://www.twylah.com/bostonvc/topics/matrix ( A Boston based VC investor  ) and here’s my Twylah page  http://www.twylah.com/cwindley .

From small beginnings Twylah has spread globally – mainly by using Twitter. Kelly has some 13,000 or so followers on Twitter. By picking certain people ( famous, influential, interesting ) Kelly has spread the word on Twylah and now Twylah users are spreading the word further.

Coco Meli Bakery ( http://www.cocomelibakery.co.uk/ )

More locally, Meli Nicolaou, of Coco Meli Bakery is using various means to promote her Artisan Bakery business and newly launched refreshments van at Trent Valley Railway Station.

Meli (  @CocoMeliBakery on Twitter )

has a relatively small ( well at least to Kelly !! ) Twitter follower base ( 500 odd ) but she has used this to help spread the word about her business. She now has a Twylah page http://www.twylah.com/CocoMeliBakery .

Again, physically and online she is spreading the word and others are spreading the word for her – some of them are influential people.

The involvement of influential people is having an actual positive effect on the growth of the business. What is the value of a new Twylah customer or a new Coco Meli Bakery customer ?? I don’t know but Eric Kim’s background is in the monetisation of Internet platforms and to him ( and the industry he has worked in for the last 10 years or so ) each follower, retweeter, circler, favouriter, liker and email address has a dollar or pound ( or part of ) value !!

I have been staying at The Glan Yr Afon Inn ( http://www.glanyrafoninn.co.uk/ ) over Easter and thought that I would do a periodic analysis of where our customers are coming from.

One of the challanges here is getting the staff to remember to get the customers to fill in the bit of the form, that we give people when they book in for rooms, which says ” Where did you hear about us ?? ”

It is something that you have to remember to do when you are busy doing other things and you have to remember to look at that specific part of the form and make sure that it is answered.

Sometimes you just have to remind the customer gently and help them to fill it in – not that it is complicated it’s just that they often skip it. ( Note to self – maybe put it at the top of the form and maybe add an incentive !! ).

So anyway, now to the results:

Approximately 30% of our room bookings are unknown for the reasons outlined above but I suspect that a lot of them are internet based bookings.

Approx. 30% definately come from the Internet.

Approx. 30% definately are Word of Mouth.

Approx. 10% are repeat customers.

We definately get the odd few people who see the roadsigns and come up ( or down ) the lane to find us. We also get a few bookings from The Good Pub Guide.

In short the efforts that we put into Internet Marketing and ensuring that people have a great experience when they visit The Glan pay off.

I am always searching for ways to describe how new media marketing works to the business people that I talk to.

My latest thought was that you could describe it’s implementation as a sort of whirlpool effect where your potential customers are out on the calm sea and you want to catch thier attention at  the outer influence of the whirlpool and then draw them gently in and then steadily down towards you – the supplier of products, services or information.

One of the main features of this type of marketing is that it is about ” Pull Marketing ” and not ” Push Marketing “. You are drawing potential clients very gently into the whirlpool and not pushing them in !!

We live in an increasingly self service world: We like to be in charge of who we buy from and deal with and we don’t much like things being pushed at us or people being pushy.

The numbers of people using the Internet to find what they want are increasing all the time. The types of things that they search for are growing all the time.

The old ways of marketing are not necessarily dead but they are suffering from a terminal disease.

Traditional ( Push ) marketing is still happening – advertising, PR, mailshots, telemarketing – it’s all still going on and it’s all still effective to some extent but more and more and every day Internet and Word of Mouth Marketing ( accelerated by the Internet ) are rising to the ascendancy.

I also think that in catching peoples attention at the periphery of the new media whirlpool you think more about people’s problems, needs, desires, objectives and questions and you lead them gently to solutions, fulfillment, destinations and answers. There is tremendous subtlety, patience, intelligence, kindness and humour in this new media whirlpool approach. Generally speaking the ladies are good at it because they often have these traits in spades. It is natural for them to deal with people in that way.

Thinking about the old Features, Advantages, Benefits sales approach you are again thinking about the potential benefits and advantages to people rather than hitting them with almost meaningless features.

You certainly need to have thought through what your core offerings are and who your target markets are. However then, you need to think laterally about what people might be thinking about or searching the Internet for and what might strike a chord with your target market. Definately you need to put yourself in the mind of the person who might be your client.

So, the way that you might attract people at the very edges of your whirlpool might be by posting a video on YouTube. Maybe something funny or shocking or maybe something informative. You might also post thoughts and useful information in  your blog. You might post a Press Release on an Internet Press Release site. ( By the way all the time that you are doing these things you have at the back of your mind the key words and phrases that your target market will be using to find someone like you ). You post things on Social Networks like Facebook and Twitter and again some are funny, some light hearted, some are informative and some are serious. Of course you still try to get into various publications and press ( many of these have online variants now ).  You list on relevant directories. You publish white papers ( as you did before ). You make your products and services clear ( as you did before ). You maintain a clear and consistent brand ( as you did before ).

Floating out at the edges of the whirlpool each of things are having thier own effect in terms of attracting peoples attention and drawing them closer to you. The YouTube video gets it’s own YouTube audience but also signposts the way back to you or your company. The blogs, PR’s, Social Networks etc all do the same.

Each of these things link back to your main website and to your email, phone number, fax number and ultimately to you.

Literally as people come within the sphere of your whirlpool the current gets steadier and stronger. Not in an unpleasant or imposing way but in a friendly and helpful way.

By the time they meet you they know quite a bit about you. They know what you believe, what you stand for and what you believe. They have, to some extent, a relationship with you.  They may even have exchanged Facebook messages with you briefly before they have spoken to you.

Then we consider that when there was only Traditional Sales and Marketing we always did our best to empathise with our potential clients – to make our advertising relevant; to make our telemarketing about creating a relationship; to tailor our mailshots and letters to our target audience; to have our salespeople ask questions and listen.

It always was and is about walking in thier shoes and understanding how they they think and feel and what they are likely to want and need. It is just that now we have this amazing thing called the Internet to communicate with our potential customers in words, pictures and videos.