Tag: lean startup

Engage in Learning About People

by jcafesin, posted in Uncategorized
Marketing 101: How to motivate people to DO what you want them to do…

An entrepreneur recently asked me: “What specific skills or knowledge do you believe will be most crucial for aspiring entrepreneurs in 2025 to navigate this complex and dynamic environment?”

My response: “The greater understanding one has of what motivates people, individually and in groups, the greater chance of success in any field. The trick — how to open yourself up beyond just yourself to become aware of those around you.”

Most of us live inside our own heads, thinking about whatever, but rarely watching others closely. Time to step outside your own head, and think differently. To become proficient at marketing, you must watch what people DO to understand what attracts our attention and motivates us to ACT — buy; try; subscribe; give.

All of us engage in marketing every day of our lives. We market to ourselves to exercise, eat right, take care of business when we really would rather be binging Netflix. We market to our kids to get good grades, clean their rooms, make friends IRL, not just on their devices. We market to our partners to be fair and equitable. We market to potential bosses for a job, or actual bosses or clients to sell them on our efforts.

I teach Lean Startup Marketing @Stanford. I also mentor startup teams and individual entrepreneurs with an idea they want to license or build into a sustainable business. Below is one of the first Challenges I give my students to help them become proficient at marketing — i.e. motivating people to do what we want them to do.

CHALLENGE #3

1. For ONE WEEK, seven full days, observe and journal about the people you see (at work, at home, at Starbucks). Watch what we actually do, (not what we say we will), and write down what you observe, into your laptop, onto your phone, or actual pieces of paper.

• Keep each observations under 100 words (preferably less). Observe and journal only scenes to which you play no part. You must be an impartial observer of what you choose to describe.

• Create separate documents per day with [at least] five observations of any individual’s behavior, or of two or more people interacting. Observations can be people at school, work, or someone at a cafe, but you must not have any interaction within the scenes you observe and document.

• OBSERVE CAREFULLY, and write down only what you see and hear. Do NOT add or embellish anything you see when documenting your observations. Do NOT judge, or give your opinion on what you see. Simply transcribe each event as they unfold.

Choose to document scenes of interest. Do NOT describe someone passing you on the sidewalk staring at their cellphone like everyone else you pass by. NOTICE the subtleties, if they exist. What are they doing on their phone (if you can see)? Three out of the five cellphone screens that I could see at Back-to-School night at my kids high school, the people — mostly women, mid 30s to late 50s, White and Asian, upper-income — were checking their email, or Facebook feed, or playing some inane online game like Candy Crush.

Pay close attention to your subject’s mannerisms, how they talk — expressive, with a lot of hand gestures? Low key, quietly leaning in to whomever they are speaking? You may see an extreme expression like a frown, or a broad smile or outright laughter, but try NOT to interpret an expression as “they looked bored,” or “happy,” or any other judgment call. Do NOT give any interpretation of what you see. Write only what you observe and hear watching any individual, couple, or group of people.

2. Log Demographic, Geographic, Psychological, and Behavioral data:

• Title each entry with the DATE, TIME and LOCATION of each observation.

• Start your observation with gender, age (approx.), race, and other obvious demographic data, like someone wearing a religious symbol, we can assume they follow that particular religion.

• Note mannerisms and behavior. Does your subject look away when someone looks at them? Do they boldly stare back? Solicit conversation with someone close by, or are so absorbed in their cellphone they hold up the line at your cafe?

• Note purchases at shops in the mall, or at the grocery store when you’re waiting in the checkout line. What is being purchased, in what sizes (small or large), in what quantity, by whom?

Example: I’m in Nordstrom’s, watching a 20-something, slender Black woman in a tan blouse tucked into a straight, knee-length navy blue skirt, try on six pairs of shoes. She finally purchases a pair that look just like the black pumps she wore into the store.

—

You likely have not gone a day in your life without marketing to yourself or someone else. Even screaming during infancy is essentially marketing to a parent or guardian to take care of your needs.

At the foundation of marketing — figuring out what really motivates ourselves and others — is Psychology. And the human psyche is massively complex. We lie. ALL of us lie — to ourselves and everyone else — to look smart, capable. To feel good about our choices and behavior regardless how counter-productive, or flat our destructive it may be.

Potential and intent are worthless constructs, marketing we tell ourselves and tout about others. (He is so smart!). To understand what really motivates people, you must observe our behavior and actions.

Want to get that job, get your husband to do the dishes, convince your kids to study? Sell your baked goods or software service (SaaS)? Take CHALLENGE #3 to learn how to get this person (even yourself), or that group to DO what you want them to do.

On Networking

by jcafesin, posted in Marketing, Small Business Marketing, sociology, stanford, startup, startups, technology, UC Berkeley, Uncategorized, writers

My second job out of college I was the Art Director for 1928 Jewelry Co. The company is still alive and vital today, quite a monument to startup lore. My boss, Fred Burglass, was the best boss I’ve ever had. Funny. Kind. Patient. Smart. I really loved that man. He was like a father to me, taught me many things about marketing, business, and people. Yet I still struggle to adhere to possibly his greatest lesson.

I’d been working there over a year and had neglected to attend any of the executive parties the company threw in their beach house in Malibu. Fred called me into his office one afternoon and insisted I come to the upcoming holiday party, as it was part of my job to schmooze with our current and potential new buyers, and my executive co-workers.

The Friday night before the Saturday party I called my assistant into my office. She’d wanted to go to the party, so I suggested she pretend that she’d come with me. I asked her if anyone was looking for me there, like our boss, Fred, to tell them she just saw me on the beach, or on the deck, or downstairs talking with the Macy’s buyer. I thought I was being clever, outsmarting Fred by telling him I’d be there, and then setting up my assistant to lie for me so he’d never know I wasn’t. The Malibu property was an estate home and easy to get lost in. My assistant was charming and smart and would have no problem pulling it off.

Monday morning Fred called me in his office. I know you weren’t there on Saturday night, he began. But the truth is, you’re just screwing yourself. You want to build your career, maybe your own company down the line, or even write novels full time? Business success, in whatever you choose to do, requires networking, he assured me.

Sadly, I’d pretty much tuned him out. Network. Network. Network. Building relationships is the only way you’ll propel your career forward, Fred consistently preached, so I’d heard all this before.

Problem was, I’ve always been a recluse. An artist by nature and trade, I likely landed in the arts because I have a hard time being with people. I suck at small talk. And I’ve learned getting too personal with questions or opinions is a fast way to shut down dialog. It’s exhausting walking the line of popular decorum, putting on that public face and pretending I believe the guy, or am even interested in how successful he thinks his startup is going to be when he doesn’t even know the SaaS he’s built is already being done by someone else. Ever hear of Competitive Analysis? I want to ask him, but don’t. I used to, but it wasn’t received well.

I give myself all kinds of excuses for not networking. I’m just not good with people. I’m better at creating than chatting. I’m an empath—get too much input around people so I need to limit my contact. But I know it’s all bullshit. You are a brilliant creator, Fred used to tell me. But no one will know that if you don’t meet the right people who recognize your talent and connect you with others to help you exploit it. You must network!

He was right, of course. Digital advertising—Facebook to Google to TikTok—has a very low ROI, generally between .05 – 1.5%. Print is usually higher, but not by a lot, assuming the targeting and messaging are equally tight. Building relationships in-person or online can yield far greater ROI, if done right. Amazon built an empire on exceptional customer service, eliminating the risk of online purchasing by making returns easy, garnering staunch brand advocates. Shark Tank candidates aren’t on the show just for VC money. They’re there for Lori Greiner’s connection to the shopping channel, QVC. The tech entrepreneurs want Mark Cuban’s contacts in the Silicon Valley community.

While networking ROI may seem harder to quantify than digital ads or even direct mail, consistently talking with people in your industry [and related industries] at meetups, SIG meetings, trade shows, webinars, conferences, biz and tech talks, and even office parties, over time will yield better ROI—broader brand recognition and more sales—than any other form of marketing/advertising.

Starting a startup, or finding a job or getting clients, the more you network with your industry and target markets, the greater your odds of building a thriving business. After all, it’s not what you know, but who you know that will help you pave your path to success.

Marketing 101

by jcafesin, posted in Uncategorized

I hate running.

It hurts my legs, my lungs, my back, my tits.

I run between 3 and 4+ miles, five days a week. And I’ll continue to run as long as the benefits outweigh the drawbacks.

I hate feeling fat, and running is the quickest calorie burn I know of (my me-time is hugely limited with an active career and two kids). Running helps me think. It not only activates neural connectivity, it’s also a quiet space, undisturbed by kids or clients. I get to listen to my music, blasting through my earbuds, let it absorb me, the rhythm drive me, and in moments it feels like I’m flying.

I run whether I’m healthy, sick with a cold or flu, or anything else that isn’t laying me out on my death bed. I’m afraid if I give myself one excuse not to run it will lead to another, and in short order I’ll quit running. But I won’t quit, as long as the benefits serving my needs outweigh the hardships.

Benefits that fulfill Need/Desire is, or should be, the foundation of all marketing efforts.

Digital advertising is now the hip slick and trendy way to market. And no doubt, there are great marketing opportunities online. Websites, landing pages, social media marketing, e-blasts, analytics…etc, are TOOLS to market with. But marketing online, or offline, IS THE SAME THING. The basic principles of marketing must be applied to sell and grow any company.

Print, online, or on the friggin moon, Marketing is selling BENEFITS that fulfill WANT. There is no such thing as NEED. It is merely a construct of desire. Advertising, PR, branding, visual design, copywriting, marketing communications are, or should be, developed, designed and produced to SELL products/services/ideas/messages. ‘Likes, Engagements, Views, Impressions’ are all bullshit “vanity” metrics to stroke egos so you’ll buy more online ad space.

Startups these days typically begin their marketing efforts by flooding the internet with digital ads, videos, polls, games and such. These branding and selling campaigns push products and services without distinguishing a clear desire or solution for anyone. They do not tout the benefits of what these startups are selling, or identifying any specific groups of people who will likely find value in the features of their offerings. No matter what Google and Facebook tell you about their targeting AI algorithms, online ads are not tightly targeted to people likely to benefit from your specific product, service or message. This “Fire, Aim, Ready” approach clearly illustrates why 90+% of all startups fail.

I’ve been a MarCom specialist in the San Francisco Bay Area for 20 yrs. I’ve worked with a ton of startups who do not consistently promote their offerings features and benefits, or realign their marketing efforts to outshine competition, nor do they invest in developing new products that fulfill anyone’s desires. And I’ve watched them fold again and again, sometimes in ridiculously short order.

Marketing 101— IN ORDER (Ready, Aim, Fire!):

1. Get Ready and Productize Your Idea: Identify the features, benefits and differentiators of your offering that fulfill a desire, or offer a solution to specific target markets likely to find value in your product, service, or message/mission (non-profit).

2. Take Aim and Create Brand Identity, and Marketing Campaigns: Establish an identity (logo), and voice (tagline), as well as marketing efforts—digital, print, and pitch (in-person) campaigns that fulfill a desire, or offer a solution to each specific target audience.

3. Fire!—Launch Marketing Campaigns: Motivate people to ACT—to click, to subscribe, try, or purchase your offering, or buy into your message.

The new order of entrepreneurs are weened on social media and tech. Universities, startup schools and bootcamps generally teach their students to launch backasswards. They promote the MVP model of innovation. Building a MVP (minimum viable product) may have worked for a handful of successful startups, but it took them a hell of a lot longer to reach profitability than necessary. In most cases, MVP is a recipe for failure. Relying on consumers to figure out what benefits your offering should fulfill for them is time consuming, expensive, and lazy. It is the job of the entrepreneur to produce a product or service of value for specific groups of people before launching your business.

Unfortunately, opting for A/B testing, and SEO keyword tricks over real content—selling benefits fulfilling a desire—and relying on Google Analytics doesn’t actually SELL much. Measuring response rates isn’t new. It’s been in the background since advertising began, and generally offers limited utility. Marketing is dynamic! Results vary by target audiences, the day a campaign launches, time of day, day of week, the weather, behavioral trends, sociological and financial climates, to name just a few factors that determine response.

The principles of Marketing may be simple, but motivating people to bend to our will is not easy. Beyond the primary building blocks of any campaign, (Ready, Aim, Fire), at the core of effective Marketing is psychology. Online, or on Mars, understanding your customers and potential customers’ psychology is mandatory if you want the greatest response to your marketing efforts. Marketing pros study people, not code, since coding, especially with ever-emerging technologies, is time consuming to learn, and generally requires a different kind of awareness than psychology. I’ve yet to meet a web developer/designer who’s demonstrated mastery in marketing. Competent at software development means they’re investing their time in technology, not in the study of human behavior.

I tell my clients that digital marketing is not ‘the answer’ to effective marketing. New avenues of selling will arise, and others fade away. But the growth of any business, or nonprofit message, or even activity, like running, depends on the benefits continually fulfilling a desire for a specific group of people.

The Virus Killing Silicon Valley Startups

by jcafesin, posted in Uncategorized

There is a pandemic in Silicon Valley. It is making startups sick, and 90+% of all small businesses fail. This virus didn’t start in China, or any country. It didn’t begin in crowded, filthy wet markets from different animals swapping genes. It began with Google and Facebook, and their unrelenting greed for profits.

I am currently mentoring startup students at Berkeley-Haas. I also teach entrepreneurs at Stanford and Cal how to achieve that illusive 10% of sustained business success. Without exception, all are starting up in the exact same backasswards way.

1. They begin their business by developing their product or service.

These entrepreneurs have invested their time, and often their own money in creating a MVP (minimum viable product), a concept introduced by Eric Ries in 2011, and the 2nd of 3 primary reasons most startups fail. NEVER begin your business by producing two-thirds of an idea hoping to ‘find’ your customers, and get them to tell you how to improve your offering. In fact, producing your initial offering at all is the wrong way to start any business.

2. The startup, with their developed MVP, create ‘digital’ marketing campaigns.

They launch their website, and create SMM (social media marketing) and PPC (pay per click) ads to get ‘traction.’ Impressions, Engagements, and Likes are virtually meaningless. Sure, Branding is essential to build awareness of a startup, but sales are what makes a business successful. SALES. That’s it. Without sales, or paid subscriptions, or donations in nonprofits, you have a hobby, not a viable business.

Let’s get real. It’s ridiculously simple to use Google Ads, or to place Facebook ads. These platforms spend millions annually to convince entrepreneurs that slamming the net with crappy advertising will make your company successful. It’s BULLSHIT. They are lying to you, pocketing your $3,000 – 5,000 monthly to ‘train’ their AI engines to “target” your business better than you can. In fact, you should KNOW YOUR TARGET AUDIENCE BEFORE YOU PLACE ANY ADS, or even develop your website.

Beyond Google and Facebook, there are tens of thousands of “Digital Marketing” agencies, selling you the same crap Google and Facebook are. They promise to make you money if you spend your money with them because it is equally easy for them to place these PPC ads as these platforms have made it for you. Stop buying into their deadly virus!

The real ROI on “digital advertising” is very hard to find. Google, Facebook and ‘digital’ agencies make these stats almost impossible to come by. Reality check on ROI of “digital” advertising, according to Search Engine Journal: “the average ROAS (return on ad spending) for small accounts is 1.5 to 1% – or barely break even.” Additionally, PPC or CPC means COST PER CLICK, not sales. It is estimated that 25 – 40% of all clicks on ads are fake, meaning you are paying for clicks from Click Farms in the Philippines, or automated systems meant to profit Google while costing you for every fraudulent click.

3. The startup goes after “building market share” with freemium offers, hoping to convert users to paying customers somewhere in the theoretical future.

It’s easy to get people to try, or even use your offering for free, when they have no skin—money—in play. SALES means getting folks to pay for your offering/s. Getting actual sales is a lot harder!

To garner actual SALES, you must first understand the competitive landscape of your product or service. Many startups have no idea the market share they’re seeking has been garnered by another company with the same or similar offerings. And here’s a heads-up to all the entrepreneurs who think your offering is so unique there’s nothing out there like it. Bullshit. In 5 minutes I can find similar offerings to just about anything. Even if your offering has a few more bells and whistles, it’s hard to get people to pay to switch from what they’ve become accustomed to using.

First and foremost, MARKETING is NOT “digital advertising.”

Broadcast, to PR, to networking, the ROI from these mediums average between 2 – 20+%, way more than the .05 – 1% ROI of ‘digital’ advertising.

BUSINESS, any business, BEGINS with MARKETING. Regardless how great your products or services are, your business will NOT be successful without constantly marketing your offerings. Branding is a tool of marketing—campaigns meant to build awareness of your offerings and company. And Marketing takes many forms, way beyond the extremely low ROI of “digital” campaigns.

The Marketing process is far more complex than designing a logo, putting up a website, and slamming the internet with “digital ads,” organic or paid. BEFORE you build your offering, construct a MARKETING FOUNDATION for your startup, (or existing business—better late than never) to create a thriving, sustainable company.

Before investing the time and money to build a product or service, then waste more countless hours and dollars advertising it, BEGIN any startup or business venture by PRODUCTIZING each and every offering IDEA.

PRODUCTIZATION begins by getting intimate with the offering you hope to create. Make lists, actual, physical lists of your idea’s FEATURES, and the BENEFITS or SOLUTIONS the FEATURES your potential offering will provide. Next, create lists of who will benefit from the features of your offering. These are your TARGET AUDIENCES, the people you will market your offering to. These lists also provide SEO content marketing when you begin the process of creating advertising campaigns.

PRODUCTIZING your offering/s means doing COMPETITIVE ANALYSIS every month or so, to be sure you understand what companies are producing similar offerings, and the market share they’re collecting. If your startup has any success at all, others are going to copy what you’re doing, and go after the same targets you’re hoping to attract, and keep. Understanding what your competition has will help you define what makes your offering unique. Your startup’s marketing should always be selling your UVPs (unique value propositions)—what makes your offering better than your competitors.

It is a lot more fun developing products and services—turning a concept into a reality—than PRODUCTIZING an idea. PRODUCTIZATION is time consuming and detail oriented, and a drag comparatively speaking. If you want to have fun, then enjoy your hobby of creating offerings. If you want to be among the 10% that build SUSTAINABLE companies, you must first build a MARKETING FOUNDATION under your startup, which begins with the PRODUCTIZATION of each and every potential offering.

A True Email Tale

by jcafesin, posted in copywriter, copywriting, email, lean startup, Marketing

This morning I came into my office and there was an email from my husband. It was title, “The terminator is coming…” No joke. That was the exact SUBJECT LINE of his email.

I don’t care that another Terminator movie is coming out. I liked only the first and second Terminator movies, and thought the rest (and Arnold Schwarzenegger) were crap.

I didn’t open his email. I trashed it. I didn’t see the link he had inside it, but even if I did, I wouldn’t have paid attention it with his email subject line.

As I reviewed my emails, I watched the news, as I do every morning. The segment was on Boston Dynamics, a well-known robotics firm. They were showing off the agility their Atlas robot, doing a back flip! I was so blown away, it looked so real, like a person, I sent the video clip to my husband and kids. My subject line: “Totally cool robot moves!”

My husband sent me back an email, “I sent this video to you this morning.”

Hmm…he did? I didn’t see it.

“It was in the email about the terminator coming,” he wrote. “I guess I gave my email a bad title.”

—

No shit.

WORDS MATTER! Marketing/Copywriting must choose the RIGHT WORDS for the right audience to get response.