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This is important because our behavior is affected by our assumptions or our perceived truths. We make decisions based on what we think we know.
The reality is, most businesses today are making decisions based on a set of incomplete or, worse, completely flawed assumptions about what’s driving their business.
There are only two ways to influence human behavior: you can manipulate it or you can inspire it.
A powerful manipulator, fear is often used with far less nefarious motivations. We use fear to raise our kids. We use fear to motivate people to obey a code of ethics. Fear is regularly used in public service ads, say to promote child safety or AIDS awareness, or the need to wear seat belts. Anyone who was watching television in the 1980s got a heavy dose of antidrug advertising, including one often-mimicked public service ad from a federal program to combat drug abuse among teenagers: “This is your brain,” the man’s voice said as he held up a pristine white egg. Then he cracked the egg into a
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If fear motivates us to move away from something horrible, aspirational messages tempt us toward something desirable.
Though positive in nature, aspirational messages are most effective with those who lack discipline or have a nagging fear or insecurity that they don’t have the ability to achieve their dreams on their own
The peer pressure works because we believe that the majority or the experts might know more than we do. Peer pressure works not because the majority or the experts are always right, but because we fear that we may be wrong.
Apple is not only leading how mobile phones are designed, but, in typical Apple fashion, also how the industry functions. In the mobile phone industry, it is the service provider, not the phone manufacturer, that determines all the features and benefits the phone can offer. T-Mobile, Verizon Wireless, Sprint, AT&T all dictate to Motorola, Nokia, Ericsson, LG and others what the phones will do. Then Apple showed up. They announced that they would tell the service provider what the phone would do, not the other way around. AT&T was the only one that agreed, thus earning the company the exclusive
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There is a big difference between repeat business and loyalty. Repeat business is when people do business with you multiple times. Loyalty is when people are willing to turn down a better product or a better price to continue doing business with you.
After September 11, there were customers who sent checks to Southwest Airlines to show their support. One note that accompanied a check for $1,000 read, “You’ve been so good to me over the years, in these hard times I wanted to say thank you by helping you out.” The checks that Southwest Airlines received were certainly not enough to make any significant impact on the company’s bottom line, but they were symbolic of the feeling customers had for the brand. They had a sense of partnership. The loyal behavior of those who didn’t send money is almost impossible to measure, but its impact has been
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WHAT: Every single company and organization on the planet knows WHAT they do. This is true no matter how big or small, no matter what industry. Everyone is easily able to describe the products or services a company sells or the job function they have within that system. WHATs are easy to identify. HOW: Some companies and people know HOW they do WHAT they do. Whether you call them a “differentiating value proposition,” “proprietary process” or “unique selling proposition,” HOWs are often given to explain how something is different or better. Not as obvious as WHATs, many think these are the
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When most organizations or people think, act or communicate they do so from the outside in, from WHAT to WHY. And for good reason—they go from clearest thing to the fuzziest thing. We say WHAT we do, we sometimes say HOW we do it, but we rarely say WHY we do WHAT we do.
It’s worth repeating: people don’t buy WHAT you do, they buy WHY you do it.
Creative was more qualified than Apple to introduce a digital music product. The problem was, they advertised their product as a “5GB mp3 player.” It is exactly the same message as Apple’s “1,000 songs in your pocket.” The difference is Creative told us WHAT their product was and Apple told us WHY we needed it.
Knowing your WHY is not the only way to be successful, but it is the only way to maintain a lasting success and have a greater blend of innovation and flexibility. When a WHY goes fuzzy, it becomes much more difficult to maintain the growth, loyalty and inspiration that helped drive the original success. By difficult, I mean that manipulation rather than inspiration fast becomes the strategy of choice to motivate behavior. This is effective in the short term but comes at a high cost in the long term.
But when a company clearly communicates their WHY, what they believe, and we believe what they believe, then we will sometimes go to extraordinary lengths to include those products or brands in our lives.