Kevin Hillstrom: MineThatData

Brawndo

In the 2006 movie "Idiocracy" crops weren't growing.

There is a scene where Joe Bauers is trying to explain to President Camacho's Cabinet that crops were not growing because they were being given Brawndo (the thirst mutilator) when they should be irrigated with water.

This led to two problems.

One Cabinet member repeated that Brawndo has what plants crave, and was so thoroughly brainwashed that she could not articulate why plants crave Brawndo ... she just knew that "it has what plants crave".
Another Cabinet member suggested that it was stupid to give plants toilet water, insinuating that Joe Bauers was an idiot.

Of course this is what it feels like to spend a half-hour on LinkedIn.

But this also happens at your company. There is somebody you have to convince of something important, and that person simply isn't capable of thinking critically enough to even understand your argument. To put this into Idiocracy terms, I once had a department head who asked to see the electrolyte percentage in every report ... it did not matter that electrolytes were irrelevant, it did not matter that there was another issue (water) that he needed to pay attention to, he just wanted his reports to show electrolyte percentages ... to him, that was the story to be told. (the real story in this instance was how much one business unit cannibalized another business unit and the department head simply could not understand the concept of cannibalization - no amount of arguing mattered).

In the movie Idiocracy, Joe Bauers eventually filmed a field that he was irrigating, proved he was right (growing plants), and ultimately (though not easily) became President.

Don't be afraid to take chances. I once had a CMO who told me that one of my weaknesses was that I didn't take risks - she told me that I needed to do things without her permission ... without me telling her what I was doing ... show that the concept worked, then I had to make it impossible via sales/profit for her to tell me not to do it again. That always stuck with me. It should stick with you as well.

A New Category

Imagine the terror you likely have if you make computers and Apple creates essentially a new category with the Mac Neo (click here).

You'll do the same thing within your own company. I recall working at Lands' End in the early 1990s when we'd see a surge in mock turtleneck sales ... we had analysts who'd pour over the numbers, estimating the impact mock turtleneck sales had on turtlenecks ... they'd analyze if the customer changed behavior (the customer did not change behavior, the customer simply changed product preference) ... they'd argue whether turtlenecks or mock turtlenecks should be featured in the first twenty pages of the catalog.

Regardless of the debate / arguing, they knew the impact mock turtlenecks had on turtlenecks.

You probably deal with a similar situation at your "brand", right? What do you do to understand the issue?

Read This ... < 1,200 Words

Read this (click here) ... after reading this small amount of text, you'll have an understanding (not necessarily fully accurate but that's not the point) of the life of this shark.

I share this with you because this is what you'll have to do in the age of AI ... AI is going to write better than you. You and I have to clearly, simply, beautifully compete with technology. If we don't, we lose.

One can make a strong argument that as AI consumes jobs, an increase in artistic jobs fill the void. Writing is a noble artistic job.

Your Core Micro-Businesses

We're analyzing a business that has seventeen micro-businesses (categories).

I selected all customers who bought one time last year, and bought only from one micro-business. I then measured the micro-businesses that those customers purchased at least 67% of their sales from in the next year.

What did I learn?

Customers crossed-over into mostly two categories in the next year. Just two!

This is a mostly common outcome. It means that the two micro-businesses that customers cross over into are the core of your business.

When you don't have a marketing story? Make up a story about the core of your business, because that story should resonate with the most customers.

High Crossover Microbusinesses

Back in the day at Nordstrom Mens Apparel was a "high crossover" micro-business (category).

What does that mean?

It means that a Mens Footwear customer was willing to buy Mens Apparel next.

It means that a Mens Tailored customer was willing to buy Mens Apparel next.

It means that a Womens Apparel customer was willing to buy Mens Apparel for her husband on a next purchase.

It means that a Cosmetics customer was willing to buy Mens Apparel on a next purchase.

High crossover categories are prime candidates for email marketing. You want customers early in the life cycle to crossover into as many micro-businesses (categories) as possible - the odds of future purchases increase meaning that lifetime value increases.

Email marketing isn't some mindless "set it and forget it" program. It requires thoughtful consideration. Do the small things that lead to customers who are likely to purchase more often.