Why it makes sense to bake “good” into your business

Here’s an insightful snippet from Paul Graham, one of the partners at Y Combinator, on the dangers of excluding the good gene from your business:

“When you’re small, you can’t bully customers, so you have to charm them. Whereas when you’re big you can maltreat them at will, and you tend to, because it’s easier than satisfying them.”

The implication is that companies without the good gene baked in end up losing focus and abusing customers.

Instead, Mr. Graham suggests that by wiring benevolence into a company from day 1, a business can get big while staying friendly, customer-focused and successful (like Google, who’s tag is “don’t be evil”).

I think this is a nice idea, and a good one as well.

It also helps address the omni-present indie dilemma: at what point are we selling out? The neat answer is: never, as long as you stay benevolent and keep adding value for customers.

I would add that this works only if “being good” (in some form) is undertaken in a genuine way - in other words, one of 3-4 core values embraced by leadership and infused across the organization in a manner that fosters a healthy, benevolent culture.

I think it’s virtually impossible to reel good back into a business, once it starts slipping away (Starbucks, Jetblue), or to bake it in after the fact (Chase), so the advice here is to get started on baking good into your business, but only if it’s heartfelt.

Sigg informs us of our dirty habits…

Sigg, originally uploaded by Oliver Sweatman.

I hooked another one (my activist streak is flowing today)…

I’ll admit it, this image is from an ad in a magazine (Outside). But I did take a photo of it so I guess it’s technically still legit for our bubbling flickr pool (as are screen-shots and video - let’s just get some material up there and see what happens…).

Anyway, the SIGG ad above caught my interest for its sheer educational value (1/2 the battle on moving the needle on mainstream awareness around these issues, I think). The ad informs us:

“100 million plastic water bottles are dumped into America’s landfills - every day! That’s nearly 40 billion plastic bottles per year, each taking over 1,000 years to biodegrade.”

What a disgrace!

One would hope that, faced with this knowledge, folks would stop guzzling through 3, 4, 5 plastic bottles at a seating, or ordering cases of bottled water for the home/office (look into a Brita filter, or a Sigg, I guess).

Fashion brands with a conscience walk a delicate line…

Uniqlo, originally uploaded by Oliver Sweatman.

So I hit the street this weekend for a few hours to find some Responsible? Brands in action for our embryonic flickr pool. There’s not much out there, yet (at least on the street), but I found a few ads for the pool (OK, one was from a magazine but I’m trying to get the ball rolling…).

One of the street posters I encountered (above) is interesting because it hints at the predicament faced by fashion brands that are in fact interested in promoting a more conscious consumption (I’m not suggesting Uniqlo is/isn’t one of them; I don’t know enough about the brand to say)…

“Ethically-produced” will become the norm, soon enough

The Wall Street Journal ran a piece today about social responsibility asking, ‘Does being ethical pay?‘ (subscription required). There are a couple of bits worth repeating here. The first is a succinct definition of “ethically produced” goods:

“For our purposes, “ethically produced” goods are those manufactured under three conditions. First, the company is considered to have progressive stakeholder relations, such as a commitment to diversity in hiring and consumer safety. Second, it must follow progressive environmental practices, such as using eco-friendly technology. Finally, it must be seen to demonstrate respect for human rights — no child labor or forced labor in overseas factories, for instance.”

This definition underpins a broader shift towards a more conscious/benevolent capitalism here in America, which comes as a welcome change after a long, myopic focus on profit only…

Restoring a balance of power with brands

Everywhere I go, people are talking about brands.

Brands have become our new social currency, our new belief system.

We find it impossible to divorce brand from the object or service (or person) itself; everything has become branded.

We depend on brands to discover who we are, project our identity, belong and navigate through modern life.

Every day, we admit and discard brands from our carefully-tended brand constellation, something as unique at any given moment as our own DNA.

And as we become more invested in this system, brands become more powerful, they hold more sway in our lives.

Is this good or bad?

Moving beyond the banner ad

There’s a raging debate going on in publishing/marketing circles about how publishers can best deliver value for advertisers, on- and off-line, as the mediasphere continues to evolve.

The reality is that things are moving so fast that few publishers or marketers seem to be doing much except copying one another, bandying about the oft-used phrase, “seamless integration”.

The result is often a watered-down hodge-podge of a la carte marketing initiatives that leave readers lukewarm and brand managers wondering if publishers are in fact maximizing their marketing spend

To illustrate, this week an online marketing agency sent me an expose of a recent campaign for a luxury car brand, touting how innovate it was. The campaign included a blizzard of activity (micro-sites, contests, custom content, etc).

It all looked impressive enough but, reserving judgment, I sent it to a savvy Brit who used to work at a large ad agency and now runs a small brand/communications strategy firm for a second, more informed opinion:

Remember, we met online at Prada?

Here’s a nugget, buried deep in WWD this week, in an article titled ‘Luxe Brands Follow the Money – to the Internet’:

“The great opportunity that Web 2.0 has brought is the ability to interact with people in a whole new way,” said Salter [Guy Salter of Walpole of London]. “Some brands realize it’s good to bare their soul a little more and entertain comments from customers both positive and negative. I see a day when people will meet each other in the context of commercial brands,” he said. For example, a brand-related social networking site could be very useful for luxury customers who want recommendations from peers they trust. [my italics]

Seems to make sense. Something like this: “Let’s see. We both like Prada, APC and the Georges V in Paris… now what do you think about those Louboutin heels?”

Give me less choice, please

How many times have you been in a retail store, overwhelmed by the sheer number of brands/products on offer, only to leave in frustration?

Increasingly, it seems, trusted editors who can curate choice products and/or services in a compelling way will win our harried attention.

This is bringing the “specialty” back into retail, driving a resurgence of passionate mom’n pops and leaving large, national, “big box” chains exposed.

Give me a small, local book shop, wine shop, cheese shop, bike shop or shoe shop offering earnest service, a sharp point of view and a crisp assortment over a big, national player, any day.

Gleaning market insight, on-the-fly

Few people these days have time to fill out “marketing surveys”, even brief ones, and we’re amazed how often companies try to bait folks into filling them out. We find them intrusive (meaning we hate them) and guess most “consumers” feel the same way.

Savvier brands are turning these one-way, long-form assaults into spontaneous conversations, using their web sites to cull important data on-the-fly, without ruffling anyone’s feathers. Here’s an example, from Flavorpill’s home page:

Impulse-driven, 1-question polls like this cost close to nothing to implement and can yield rich consumer profiles over time, helping guide strategy, customer segmentation and product development.

A good place to start: determine the 3-5 key things you most want to know from the folks visiting your web site (this is a good exercise anyway; keep in mind, visitors could be repeat customers, first-time buyers, or browsers).

Then, when you’re ready to go, remember to tread lightly - e.g. start by rotating 2-3 1-question polls through one ad banner instead of sprinkling too many polls around the site simultaneously.

OK, let the polling begin! Nothing like a little real-time data, sensibly gleaned (no leading questions, etc), to keep the team honest/closer to customers.

Note: Flavorpill is a former client of this blog’s editor.

Big markdowns at Little Marc

Here’s one segment of the consumer economy (designer duds for kids) that’s probably drying up pretty quickly.

Good! The land-grab by most lifestyle brands to ply expensive wares to young kids in recent years feels dirty, like capitalism run amok! Leave the tykes out of it, we say.

While the spotlight’s on MJ, we wonder how smart it is for any retailer/brand to infest a beautiful, historic neighborhood with so many goddamn stores. WTF?

Men loom large, and value brands too

The Journal ran an interesting article [sub. required] back in December (’Male Bonding’) about the increasing importance of men in the luxury goods market. Men, it seems, like nice stuff too - imagine that!

Here are some verbatims:

“Many luxury brands, known for their focus on women, are hoping to spur sales by luring male shoppers with new stores and product lines.

… One of their ultimate goals is to get men to shop more like women — making more impulse purchases and being open to items they didn’t intend to buy when they walked into the store.

… In the 12 months ended Oct. 31, U.S. sales of men’s apparel rose 2.6% to $56.3 billion — faster than the 1.9% growth to $103.5 billion in the women’s apparel market (NPD Group).

The healing properties of folklore & Art

Two excerpts from two different articles in one of today’s newspapers (guess which?):

“Folklore has a moral center to it. Folklore is always, always, always on the side of the underdog,” she says, “and children have a natural instinct towards justice. They feel indignation at needless cruelty and wistfulness about acts of mercy and kindness.”
- Laura Schlitz in ‘A Late-Blooming Talent in Full Flower’ by Meghan Cox Gurdon

“Art leads man, in stages, from primitive sensuality to ultimate perfection — to a state of freedom and joy rooted in morality. The process involves a series of oppositions and syntheses — an antagonism of forces that results first in disintegration, and then in the creation of a new, joyful wholeness.”
- ‘Beethoven’s Summation’, Stuart Isacoff

I take it this insight is not lost on you marketers out there (WSJ)

The coming brand flush

A sagging housing market, high consumer debt levels, rising energy prices and creeping shopper-fatigue are throwing a damp towel - if not cold water - on many segments of the consumer economy, just as we enter the holiday period.

It’s about time time.

Years of credit-fueled consumer largesse - unsustainable as it turns out - have buoyed a vast me-too marketplace cluttered with mediocre products, services, brands and retailers.

Now it’s time for the BIG FLUSH.

Who will be left standing? Real, living brands that integrate with and strengthen local communities and culture such as Apple, Whole Foods and many of the indies featured on this blog.

Everything else will go, and good riddance.

See also:

• It’s Indie Time
• Small & Spunky
• US Females Consider Trimming Back the Excess
• Hedging Your Baby
• Indie Coffee Shops Play the Local Trump Card

Photo credit: IBC; detail of Barbara Kruger painting at Mary Boone Gallery.

Swobo’s well-meaning swagger

Here’s a zinger Q&A from Cool Hunting with the founder of Swobo, Tim Parr. A little excerpt:

“Our apparel line tows the company vision as well, it uses 100% USDA organic cotton, recycled polyester, water based inks, Merino wool, etc. because it’s just the way it should be done. We also donate 1% of gross revenue (the big number, the not so easy to hide behind number) to environmental groups. Business has the ability to change a lot of this environmental mess (because business started most of these enviro problems), and people have the ability to change business.

Q&A with Sarah Kugelman of Skyn ICELAND

IBC: OK, let’s get started. We’ve been watching your little business with interest. What’s Skyn all about?
Sarah: Skyn ICELAND is the first and only skincare line that addresses the effects of stress on skin. Since stressed skin is damaged skin, it needs to be soothed, healed, repaired and put back into balance. We create great skin from the outside in as well as the inside out.

IBC: You’re not a first-time entrepreneur. What key “lessons learned” did you bring to Skyn?
Sarah: Since this is my second company, I learned quite a lot. I learned not to sell a huge % of your company upfront to investors, as it diminishes your control and decision-making power. Try to fund as much as your business yourself or with friends and family money; in the long run, it will enable you to run your business as you see fit. I learned to start with a good strategic and financial plan in place. Don’t figure it out as you go. Know where you’re headed and how you are going to get there. Hire the very best people. You are only as good as your team. Don’t go into business with friends. Trust your instinct.

IBC: Spoken like a pro. Why did you start Skyn?
Sarah: I really wanted to start a business I felt passionate about, something that combined a personal interest with my professional background. I had a serious health crisis 12 years ago and it taught me to take better care of myself. I learned that there is a big difference between not being sick and being “well.” You only have one body and when it goes, that’s it. I became really interested in health and wellness (yoga, nutrition, herbal medicine, acupuncture, massage, etc) and it has become a way of life for me. I wanted to figure out how to combine that experience and knowledge with what I do for a living. I ended up spending a year and a half researching the connection between stress and skin. When I discovered that there was a distinct and direct link between the two and understood that I could treat that problem topically, I decided to create a skincare line that could make people look better, feel better and teach them about wellness.

IBC: I like that… I’m becoming a bit of a wellbeing nut myself. How do you find balance in your own life as an entrepreneur and a mother?
Sarah: It’s really hard. I used to work 24/7. Now, I go into my office three days a week and work the other days from home. It means squeezing a lot of meetings into three days and still working like crazy from home, but I get to see my daughter four days a week and that makes it all worthwhile. I also take a lot of time off in the summer. I have a house out at the beach and I spend a lot of time there in the summer regenerating. I do a lot of yoga, eat lots of organic food, bike to the beach, swim and sleep late. It is great for the body as well as the mind. I find that it gives me the energy I need to get through the rest of the year and it also gives me some time to think about my business and plan for the future (you can’t do that when you are sledging through the daily grind).

IBC: I see… walking the talk! Beauty keeps being redefined. How do you define it?
Sarah: A writer just asked me that question. This is how I answered: “Beauty is the perfect balance between inner and outer beauty. Inner beauty is a combination of good health, good intentions, integrity, intelligence, a sense of humor and kindness. Outer beauty is about making the most of what you have, taking care of your body through exercise and good nutrition and then projecting confidence and grace. Of course it doesn’t hurt to have flawless skin, captivating eyes and a contagious smile!”

IBC: How would you describe your management style?
Sarah: Informal, fair, strategic and creative. I am resourceful, I think out-of the box and I like to work as a team. I do bring good “big company” experience with me so even though we are a small start-up, we function in many ways like a big company (which gives us the best of both worlds). I think I bring that structure and process.

IBC: How do you feel about trading on the Iceland image? Is it authentic?
Sarah: It’s authentic because we never try to be anything we’re not. I never claim to be from Iceland and I would never claim that our products are made there. The story is that I went there and fell in love with it. I felt like it epitomized all of the things I was talking about with skyn ICELAND: a low stress, clean, healthy place. Somewhere we would all want to live if we could exist in a pure, stress-free environment. What’s also interesting is that the waters there are super nurturing and curative to the skin, so I decided to import them and incorporate them into all of our products. It’s become our “secret ingredient” in addition to various Icelandic botanicals and medicinal herbs. Because of the climate, they are super potent. So really Iceland is an image we convey and we are connected to Iceland through our ingredient story.

IBC: Your business is growing. What have you done well on the sales and marketing side?
Sarah: We have been backstage the past three seasons at NY Fashion Week. We have built great relationships with designers such as Charlotte Ronson and Susan Ciancolo. We also have a great group of makeup artists that now use our products. We’ve been asked to sample VIPs at some great celeb events because people just loved our products - i.e. Showtime VIP’s for the Golden Globes, Women in Film’s Crystal and Lucy Awards, George Lopez’s Kidney Foundation dinner, MTV Movie Awards and more… we’ve also aligned with a group of stress experts and Icelandic companies (as well as the Icelandic Chamber of Commerce). As for Sales, we built a great relationship with Sephora and they have nurtured us every step of the way. We’d be nowhere without them.

IBC: What keeps you up at night?
Sarah: Running out of money.

IBC: Yes, I know the feeling. OK, in addition to the “lessons learned” up above, any pointers for first-time beauty entrepreneurs?
Sarah: Don’t listen to naysayers and never give up.

IBC: Yes, I call that tenacity - a key ingredient for any successful indie. Thanks, Sarah. It’ll be exciting to watch Skyn evolve and grow. I’m curious to see what you have in store for ‘08.