Friday, September 29, 2017

Why Does Elon Musk Want Dissenters in his Company?

In many companies and organizations, there is a position that most employees learn to avoid. It's the position that stands out from the crowd and represents the minority voice on the team. Instead, folks learn to see which way the water is flowing and the music is playing, and they align their interests and concerns accordingly. It's often couched in phrasing as "being a team player" and being a "proactive player instead of a negative burden" or similar.



Elon Musk, the well known chief executive of SpaceX which just recently solved how to create a space rocket that can land itself and be reused again, follows a different path with his employees. He actually wants people to tell him when they think he's going down the wrong path. As Musk puts it, the lone dissenter or minority voice often points out issues and facts that if ignored can turn into costly problems later on. However, if a company team only follows the majority path, it can quickly turn into the fatal path of groupthink and "yes" men, ignoring major warning signs a big disaster is about to occur.



The Reward Dissenters Bring



Elon Musk and SpaceX are no strangers to risk. They operate in the high stakes game of off-Earth space transport and travel. A mistake in this environment has almost always meant total loss and millions of dollars wasted. So from Musk's perspective, a dissenting voice provides multiple benefits. It forces the supported path to be defended better by showing why the concern raised is not an issue, a form of vetting before moving forward. Second, the minority opinion frequently brings up risks or concerns that may be glossed over otherwise because they are inconvenient to the supported path. Again, the biggest business mistakes often start with small, ignored issues, like a small leak in a levee.



The idea of rewarding the person who raises potential problems goes against the trend of American business. For decades business managers have been taught that the team is all-powerful and that many minds in synergy produce more than the individual alone. However, this also assumes a lot of mistakes are made along the way to develop that experience. In rocket-building, however, mistakes can't be tolerated, so Musk believes in asking every question and giving a chance for dissent, an antithesis to traditional corporate culture.



Think This Doesn't Apply to You? Think Again



Some might argue that the same situation of a rocket company doesn't apply to a business creating software or coffee-makers. Businesses can afford to have mistakes and still make sales. However, in practice, this logic fails when the company gets sued and loses a major product warranty or personal injury case. Litigation has killed more than one small or medium business with a great product or service but no defense to a mistake that harms someone.



Musk doesn't believe every dissenting opinion should be followed. In fact, he notes in his advice they can be incorrect. However, listening causes the path chosen to be analyzed just a bit further to identify weaknesses missed. And in Musk's business, if it exists, avoiding that weakness can mean his multi-million dollar rocket landing again in one piece. What does it potentially mean for your company?


Tuesday, September 19, 2017

You Can Never Have Too Many Purchase Points

The sales funnel in a business has changed dramatically in recent years, thanks in large part to how digital and print marketing have been married together. The customer experience is now a fragmented one, and if you're only giving your audience one opportunity to buy, you could be leaving lots of money on the table. In truth, you can never have too many purchase points in today's modern climate for a number of key reasons.

How Freedom Gave Way to Multi-Point Marketing

The internet, in particular, has naturally led purchasing decisions to become more complex over time. Because more information is now readily available than at any point in the history of consumerism, people now spend huge volumes of time researching before they make that move towards a purchase. They're also getting their information from many different sources. Dimensional Research conducted a study that revealed 90% of people are influenced by online reviews before making a purchase. Another study revealed that 36% of people use a company website before making a purchase, another 22% rely on face-to-face interaction, and 59% even find out what their friends or family members have to say before they make a decision one way or the other.

You might think that this massive influx of information would make the sales funnel simpler, as it's now easier than ever to find the actionable information you need to make the most informed decision with your hard-earned money. However, it's actually had the reverse effect. Things have gotten significantly more complex as even the average consumer's opinion is now being pulled in a number of different directions.

The 21st Century Sales Funnel

This massive shift in the way that consumers operate has created a ripple effect, changing the way businesses operate at the same time. It requires marketers, in particular, to respond in more diverse ways, starting with not just how they've optimized their sales funnel to take into consideration 21st-century buying practices, but how they've designed the funnel in the first place.

According to a piece that first appeared in Forbes, content marketing is one of the primary keys to helping address these modern day challenges. Essentially, modern businesses need to assume that EVERY point in the sales funnel is a potential purchase point and content needs to be created to match. Content marketing lets businesses created and distribute relevant, valuable, and consistent content to attract their clearly-defined audience. If you're assuming that your audience could be ready to buy at the drop of a hat, naturally how you design that content will have to respond.

In essence, content and your larger marketing efforts must now be ready to address problems earlier in the buying cycle than ever before. The only purchase point in your sales funnel can no longer be the one at the end. Any point can now be a purchase point if you know what you're doing. These types of techniques also give way to an added benefit of allowing marketers to take advantage of more diverse channels to attract the largest audience possible from the outset.

So, not only are you getting consumers who are ready to buy sooner than ever before, but you're also getting a larger number of leads entering into the funnel. It may be trickier to manage, but it's the type of situation that our marketing ancestors would have gladly killed for.