CHAPTER

9

FOR THE NUMBER OF mistakes made, there are just as many success stories among entrepreneurs and today’s leading companies. That is because companies on the move—growing and expanding—are those that understand that the survival of the species depends on the ability—and flexibility—to evolve and adapt to their environment. This chapter will explore how this prime character trait leads to success.

Early on, successful entrepreneurs realize that they cannot always stick with their original plans. If anything, changing the plan has actually resulted in bigger and better results than originally anticipated. After all, it does not make sense to think you can simply stick to your guns if the market changes or the competition comes up with something new. Often, you see that the most successful companies have a business plan that points them in one direction but a couple years later they are doing something completely different.

REACHING OUT FOR THE BIGGER PICTURE

These companies don’t get so hung up on what the competition is doing when deciding what they should do. Instead, they focus more on how to be the best that they can be, which is something many entrepreneurs and company leaders have not yet learned to do. If you are looking over your shoulder to see what everybody else is doing, then you are not looking forward. You may stay frozen by the concern that someone else is doing a better job than you when your efforts should be focused on looking at your audience and how your capabilities can satisfy them. Of course, you do not want to ignore the competition; just do not fixate on what they are doing. You have to stick to your own vision and make that work.

Reaching out for this bigger picture also means approaching people in different ways. It might mean tweaking your social media strategy regularly as you gain a better understanding of your target audience or come in contact with networking contacts that provide you with another perspective. Although it might be easier for you to take the same route, you will forget about the landscape that is so much bigger than the small area through which you are currently traveling. It takes creativity and courage to forge that new niche path or traverse the road less traveled. But it is necessary as one of many tactics that all successful companies can say they share.

To chart your course, you need to turn to your target audience. Here are some of the questions we have asked of our target groups:

•What are you reading?

•What are you interested in?

•What is your perspective? How do you feel about X, Y, and Z?

•What are you viewing? Are you tuned in to YouTube videos? Are you constantly checking Facebook? Do you prefer LinkedIn?

•What are you using to view that content?

Although it is a constant struggle to find this right direction, especially when that direction often changes, asking these questions regularly helps to realign our strategic course.

Navigating this course also involves reviewing statistics on a frequent basis. Although tools like Google Analytics do help, you need to explore other metrics, thanks to an ever-growing toolbox of statistical tools now available:

•What do people do when they come to your Web site?

•Where do they stop and linger a while?

•What is their breaking point? That is, when do they decide they have spent enough time on your Web site?

•What effect does your Web site have on them?

These statistics will identify what is working and what is not. You also can turn to experts in this field who can figure out how to analyze these different opinions.

Case Studies on Doing It Right

Fleet Feet, Publitas, ING Direct USA, Virgin America, and Barnes & Noble are five prime examples of companies that are doing things the right way. The following section of this chapter explores how these five companies serve to demonstrate the traits necessary for entrepreneurs and business leaders alike to achieve sustainable success.

Fleet Feet

Fleet Feet, Inc. is a specialty retail store founded in 1976 in Sacramento, California, by Sally Edwards and Elizabeth Jansen. The store focuses on specialty fitness footwear, apparel, and accessories. After the store’s initial success, they decided to start new franchises in different cities across the nation. Fleet Feet, Inc. was bought by Tom Raynor in 1993 and continues to be a successful network of stores, with more than 100 locations.

Fleet Feet was founded with an emphasis on the importance of community and customer relationships; the people at Fleet Feet take these principles very seriously. One of the ways that they foster customer relationships is through their Fitlosophy™, which provides all customers with an individualized and personal fitting process. The fitting process entails five steps: getting to know you, measurements, gait analysis, fitting and recommendations, and finally a decision. A Fleet Feet employee will first listen to your goals and running activities, measure your feet for size, watch you walk and run, and then bring different options for you to try on. Fleet Feet stresses that they will pick the best shoes for you—not the most expensive shoes or the flashiest-looking pair. Their emphasis is on fit, support, and comfort, not necessarily the aesthetic aspect.

Fleet Feet not only fits customers for running shoes but also helps them find the perfect fit for inserts, socks, and sports bras. Of all the special features that Fleet Feet provides, this is unique, mostly because the average running shoe customer would not know the importance of finding a good fit for these running accessories. Fleet Feet says that inserts are really important for runners because every foot and body is different and the actual running shoe can only do so much. The right insert might be crucial to provide the necessary foot support and body alignment for a runner. Socks are also an important element of running performance. A Fleet Feet employee will help customers look for elements such as seams, fibers and materials, ergonomic fit, heel pocket, needle count, and engineered cushioning. Finally, Fleet Feet can help customers find the right sports bra. They claim that more than 80 percent of women are wearing the wrong bra size, so they work to help them find a better fit that provides comfort, support, and breathability. The company really stresses the importance of people as individuals; they don’t see their customers as a homogeneous group but as very different people with very different running needs.

This outlook is also reflected in Fleet Feet’s health and fitness campaign: “Be the Movement.” The movement really emphasizes fitness for everybody, regardless of age, current fitness level, or training goals. Fleet Feet provides different training programs for people of all skill levels; these training programs are central to the company’s involvement in the community. The “Be the Movement” campaign really stresses the participation of the entire community. In the video on their Web site, Fleet Feet participants comment on how the store “is like a family” and how it is more than just a retail store because it provides a “full experience.”

Another participant says how the running and training programs are useful to him because the coaches are “extreme motivators.” Others say that they appreciate the programs because “you never feel like you’re alone” and that Fleet Feet “makes you feel very welcome regardless if you’re a walker that is just starting running or if you’ve been a runner for years.” This movement and the different training programs Fleet Feet offers not only get the larger community involved but provide them with an experience that is even bigger than exercise. One satisfied participant said that once she joined a Fleet Feet training program, running “stopped being exercise and it stopped being work” and instead was something that she genuinely enjoyed doing.

SOCIAL MEDIA OUTLETS

As a national retailer, Fleet Feet takes advantage of Facebook and YouTube to connect further with customers. Their Facebook account has almost 6,000 likes, and they take a very active role on the page. They create status updates frequently and have a very high level of interaction; users not only like various posts, but they comment on them. The content on the Facebook page is made up of a variety of things; content ranges from product information and promotions to running tips, congratulatory posts, and running-related news. The Fleet Feet Facebook page also has a lot of pictures that are posted both by Fleet Feet and other Facebook users. The pictures show different products and community events in order to showcase all of the different aspects of the company. Fleet Feet also has a YouTube account with more than twenty different videos that showcase various models of running shoes. The videos seem to be more promotional than anything else and a new video has not been posted in more than two months.

COMMUNITY INVOLVEMENT

All of the different Fleet Feet locations have their own Web sites. The Web site for Fleet Feet in Chicago prominently features an upcoming event, along with new products that the store just received. Judging from the emphasis of the Web site homepage, the company’s priorities are still clearly present. Even though the Web site details all of the store’s products, the majority of the content on the page is geared toward community events.

If you go to the events tab on their Web site, the Fleet Feet Chicago calendar shows eighty-seven upcoming events. The events range from Women’s Only Events, Seminars, Fun Runs and Walks, Races, and Community Yoga. The events are free and usually just require a simple RSVP. As mentioned in the Fleet Feet, Inc. background, Fleet Feet stores all offer training programs for different levels of fitness and achievement. Fleet Feet Chicago is no different, with programs ranging from No Boundaries, a program for beginning runners, to a marathon group for those training for 26.2-mile courses.

Fleet Feet Chicago is also involved with the community through its partnership with various charities. Charities include the AVON Walk for Breast Cancer, American Cancer Society, Chicago Area Runners Association, Girls on the Run Chicago, and the Leukemia and Lymphoma Society. The charities that they choose to support not only raise money and awareness for health and social issues but help train many runners. Throughout the calendar year, Fleet Feet Chicago holds various events for these different charities.

The individual Fleet Feet retailers also seem to be much more active in their social media outlets than Fleet Feet, Inc. Fleet Feet Chicago uses Facebook, Twitter, and a blog. The Fleet Feet Chicago Facebook page has more than 6,700 likes and provides a wide variety of information. Content includes information on events, product and store promotions, and links to the store’s newest blog posts. There is a lot of interaction on the Facebook page; customers comment and like the frequent status updates and even feel comfortable enough to post comments and questions on the Fleet Feet Chicago Facebook wall. All comments and questions are quickly responded to with detailed information.

One Facebook user recently posted a comment on the Fleet Feet Facebook page complimenting the great service, staff, and products. Not only is this proof of a very satisfied customer, but Fleet Feet Chicago quickly thanked the satisfied customer. Like the company’s Facebook page, there are a lot of pictures that are posted by both the Fleet Feet store and Facebook users. Pictures show store employees, new products, and various events.

Fleet Feet Chicago employs a Twitter account in which they have more than six thousand followers. Again, as on Facebook, they use their Twitter account very actively and have posted more than eight thousand tweets. They usually post around five tweets per day; it is a mix of retweets, responses, and tweets about various running and Fleet Feet news. They prominently feature their Twitter account on the Fleet Feet Chicago Web site, providing a live feed and multiple links.

Finally, Fleet Feet Chicago has a blog—the link is on their Web site. The blog provides more in-depth information than both of their other social media outlets. There are usually about four posts a week, if not more. Content ranges from inspirational posts such as “Five Reasons to Run in the Winter” to educational posts such as “Post-Marathon Recovery Tips.” Other posts include gear reviews, coaching tips, and nutritional guidance.

THOUGHTS ON FLEET FEET’S SUCCESS

Fleet Feet, as a retail store, does not cover half of what they do. Instead, they are more of a fitness community that aids running and other activities through the personalized sale of athletic equipment. Through their various social media outlets and Web sites, they show that the emphasis really lies on the community events, races, and training programs that are provided to customers.

In the case of Fleet Feet Chicago, they exhibit an extreme level of commitment that is reflected not only in the prominent display of event information on their Web site but in the amount of interaction on their social media platforms. Both their Facebook and Twitter pages provide a lot of relevant information to customers and fitness enthusiasts. By putting the emphasis on individuals and their fitness goals, there is less focus on the product. The high level of staff assistance that the customer receives in the store is a way to foster this community involvement. I looked on the Fleet Feet Chicago Yelp page to look at some of the reviews from various customers. Although some customers did have negative customer service experiences, the store had an overall rating of four stars. One satisfied customer describes the loyalty that she feels for Fleet Feet due to the knowledge the employees have about their products, the way that she feels included, and great customer service. The entire package—quality products, expert advice, and training programs/events—provides a lot of value to customers. This value is reflected in a high level of customer loyalty that is ultimately one of the secrets to Fleet Feet’s success.

Fleet Feet is more than a retailer; they are building a community around their store by organizing events, holding running workshops, and delivering excellent service. They really distinguish themselves from other stores by following up with you. Fleet Feet really goes beyond what you would expect from a store and they are very well integrated into the community in a very active way, which sets them apart from most other stores.

The reason they are so different comes down to the attitude of their management. Essentially, they feel that what they are doing is simply what they should do. It is not just that they should run a store and make money doing it; it is about becoming an integral component of the community. The management imbues this philosophy in everything they do so that it is passed on to everyone who works for them, which is then passed on to the shoppers in hopes that they carry that attitude into whatever they do in their own personal and professional lives. It is like the retail version of “pay it forward.” Finally, what is most interesting is that Fleet Feet is a relatively small organization, although they do have a nice network of shops. What you see with their bigger stores is that they use social media mainly for special offers. This is a total communication effort with their customers and potential customers, and it is far beyond what so many retailers offer today.

Publitas

The next success case study is the Dutch e-publishing company Publitas. They illustrate the innovative ways that various social media platforms can be incorporated into a business strategy. Unlike other companies, which primarily use social media for its promotional value, Publitas has recognized the importance of social media in the lives of their clients and their clients’ clients. Social media is not only important to the companies that utilize their e-Publishing software, but it is an important part of how those companies do business. The way in which Publitas offers software that is already integrated with social media provides an alternate look at how a company can use social media.

BACKGROUND AND OBJECTIVES

Publitas was founded by Guillermo Sanchez and Khalil Seyedmehdi in 2006. The aim of their company is to enable businesses to convert content to digital formats better. Publitas defines itself as a “professional digital editions application” that allows “professionals and businesses of all sizes to easily create, enrich, publish, and deliver their editions to online and mobile devices.” Because their e-Publisher software is cloud-based, users don’t have to install any type of software to view online materials. The Publitas software converts print content into a digital format that can be embedded in a Web site, is compatible with RSS distribution, is available for export to offline media such as a USB drive, and can be archived in an online e-library.

Publitas’s software, however, allows their clients to do so much more than just convert content into a digital format. Their e-Publisher allows readers to have the best online reading experience due to vector technology for high-quality zooming and automatic pixel resolution. The layout of the online reader facilitates easy navigation through pages and allows readers to do a full text search. Readers have the option to view the content on any number of technological devices. Publitas makes a mobile version so that content is compatible with personal computers, cell phones/smartphones, and digital tablets. Publitas offers clients business-oriented tools through analytics, which allow clients to see statistics about their publications. These statistics include how much time a reader spends on a given page, the resolution at which the publication is being viewed, and the user’s browser version. Clients with Google Analytics accounts can also integrate the Google system into Publitas’s existing analytics system to receive a more detailed report. Finally, Publitas assists with search engine optimization by incorporating publications into Google’s PageRank to drive traffic to a client’s Web site.

Not only does this digital format provide a better online reading experience, but Publitas gives their clients control over the content they are releasing. Clients have total control over the aesthetics of their publication with the ability to create unique templates and pick different colors, shapes, and shadows. Clients are also able to choose which features are put into the digital version of their publication and can acquire a personal domain name. Features such as videos, interactive content, and links to digital content enrich the digital experience. New additions to Publitas include the ability to integrate e-commerce directly into a publication. All publications are also compatible across all social media networks for easy content sharing through Facebook, Twitter, etc.

Recently, Publitas has won two awards for their business success. One award, the 2011 Red Herring Top 100 (Europe), selects winners from hundreds of European companies. Companies were judged on their “financial performance, technological innovation, quality of management, execution of strategy, and integration into their respective industries.” The other award was the 2011 White Bull Bully Award. Publitas was chosen for its innovation and values of excellence.

ORIGINS

Co-founder Guillermo Sanchez shared the story behind Publitas’s founding in an interview. Prior to the conception of Publitas, Sanchez was working at Deloitte. Having studied computer science in college, he did a lot of work in IT consulting. A college friend who had always been very interested in the Internet and had very creative and innovative tendencies contacted Sanchez. When he shared his idea of an e-publisher with Sanchez, they both quit their jobs to give the idea their full attention.

The company really began with the software that Sanchez’s business partner wrote. Sanchez said that Publitas was started in their bedrooms on their personal computers. As he put it, they “bootstrapped the business” and “just jumped in.” At this point, their knowledge about the e-publishing market was very limited; they just developed the technology. This might be why their initial foray into the business was met with limited success. The software had been developed with the professional publishing market in mind as a way for publishers to convert their print product into a digital copy that could then be sold. They noticed that most publishers did not have a digital archive of all of their publications and that their software could potentially fill this gap.

Initially, Publitas had a few publishing clients. Sanchez found, however, that it was rather difficult to enter this market because a “digital version of the [same] material would become competition for [the publisher’s] own product.” Therefore, it was hard for Publitas to convince publishers to convert their products into a format for which there was not necessarily much demand. In 2005, digital tablets had not yet become popular in the same way they have now. They were not as common, as technologically advanced, or as inexpensive as they are today to make them accessible to the majority of people. Because of the obstacle presented by the lack of technological development, digital versions of content were just not a priority for publishers.

BUSINESS DEVELOPMENT PROCESS

Because Publitas was not experiencing the success they had anticipated, Sanchez and his business partner “had to go back to the drawing board.” Now that they were more immersed and knowledgeable about e-publishing, they realized that they might have been after the wrong market and that their product might be more successful elsewhere. At this point, Sanchez was much more knowledgeable about e-publishing and now had the experience to make more informed decisions.

Publitas decided to allow retailers to convert their printed catalogs into an online format. Luckily, this market found a much higher value in converting to a digital format, or at least having a digital format of their catalog available to potential consumers. With this shift to the retail market, Publitas started integrating e-commerce into their business model, which Sanchez notes “is a much different direction from the original intent of the company.” The technology ultimately developed from a simple reformatting of print content to software that could allow retailers to create a functioning online catalog. Not only is the catalog viewable online, but it is viewable on any number of devices, such as the iPad. The e-commerce integration also allows consumers to treat the digital catalog like the print version and order straight from the product page.

Sanchez also said that they “made a lot of mistakes but were luckily able to correct them.” And this correction is what ultimately saved their business. Publitas now holds a market share of 60 percent of operating retailers in the Netherlands. One of their biggest clients, Metro, a German hypermarket company, is one of the top three retail companies worldwide.

SOCIAL MEDIA SOFTWARE INTEGRATION

It was not until Publitas starting extending their business into the retail markets that social media became a central aspect not only of their software but their business practice. As Sanchez explained, “There is no retailer that does not have a social page or that is not active on Twitter. [Consequently], Publitas software allows shoppers to share and interact with content from the catalog and post straight to Twitter. Viewers can then click back to the catalog to create a completely interactive experience with the client’s product.”

Social media facilitates this cyclical nature of media sharing. Because the Publitas software allows users to share content from the digital catalog directly to a variety of social media outlets, the content then becomes viewable by an even greater number of people. Online catalog viewers can post to social media sites like Twitter, Facebook, LinkedIn, Blogger, StumbleUpon, Tumblr, and Google Bookmarks. In addition to providing an alternate format for a retail company’s existing catalog receivers to view, the Publitas software has the ability to extend the company’s reach. Sanchez even commented that all of the existing features available to Publitas clients are designed to increase the retailer’s reach. Thus, the social media software integration was ultimately shaped by Publitas’s change in target markets. The different needs of retailers provided the impetus to integrate social media into their business model and software.

SOCIAL MEDIA STRATEGY

Sanchez admitted that social media for their company’s promotion did not necessarily play a huge role until recently. Even though the company dealt with social media in terms of their software, Publitas had not personally been using social media. Due to the company’s success with retailers in the Netherlands, Publitas has plans for international expansion into the United Kingdom, Germany, and the United States. They are using social media to facilitate their move into foreign markets. The enterprise companies that Publitas is looking to target have extensive social media use.

The companies Sanchez said Publitas was hoping to secure as clients are very involved in social media for customer service and company promotion purposes. In a conversation with Arka der Stepanian, the director of online marketing at Publitas.com, some light was shed on the ways Publitas is using social media for future goals: “Over the past few months, one of my main tasks here has been to develop a social media strategy to increase our digital footprint and ultimately to generate quality leads.”

Currently, Publitas has a Twitter account, a Facebook account, a LinkedIn account, a blog, and a YouTube account. They are the most active on Twitter and Facebook, although activity only started about three months ago when plans for international expansion began. They have 108 followers on their Twitter account and 229 likes on their Facebook page. Sanchez said that their social media strategy is still being established, but that the main focus is to drive traffic to Publitas’s Web site. Specifically, Publitas’s Twitter account acts as a news-feed of information relevant to the market. They provide links to content on popular marketing, business, and social media sites such as Mashable.com.

The Facebook page has a similar newsfeed-like quality but also includes links to more Publitas-specific content. One such example is a link to a new clothing catalog for one of Publitas’s clients that just went online. Because the focus of Publitas’s social media use is to draw in potential clients in the international markets they are breaking into, infographics are readily used to appeal to potential clients. Sanchez said that they like to post infographics that provide relevant information to potential clients, such as people’s use of iPads. He feels this is useful because it shows potential clients how Publitas can be useful and relevant to their business.

RELEVANCE OF DIGITAL CONTENT IN THE AGE OF SOCIAL MEDIA

When asked about the way Publitas has changed with the growth in popularity and permeation of social media into both business and social life, Sanchez pointed to the development of technology. In the interview, Sanchez often mentioned the iPad as a primary device for content viewing; however, it has not always been that way. When Publitas first started partnering with retail companies, the retailers told them that paper flyers and catalogs were still effective. At this time, customers were still saying that they wanted the printed material—not everyone wanted the digital version. As Sanchez explained it, “paper [catalogs create] the coffee table or living room moment.”

The coffee table or living room moment that Sanchez is referring to is the amount of time that catalog receivers take when they get a catalog to sit down and flip through it—they are sitting on a couch or armchair, not at their desks staring at their computer. It is only recently, however, that research has showed that customers favor digital content over the print version. According to research, on average, catalog receivers look at only nine to ten pages. On a tablet, however, digital catalog receivers look at twenty pages of the digital version.

It is as if Publitas has been waiting for this shift for their entire existence and it is now finally here. Smartphones and digital tablets are now so prevalent that people no longer feel burdened by digital content but rather liberated. Instead of being tied to a desktop computer to view digital content, viewers can now have their coffee table or living room moment with a portable technological device. Publitas further facilitates this moment with software that makes content viewable on any number of devices.

In addition to the compatibility of digital content provided by Publitas that eases a reader’s experience, the enhanced features for companies are invaluable as well. To return to the original question of how Publitas has changed due to social media, the growth and spread of technology, such as the digital tablet, among more and more people has ultimately shaped Publitas software. A reciprocal relationship exists between the way people use their technology—to access social media—and the way they would want to interact with a digital catalog. Thus, integrated into the Publitas software is a way for catalog readers to better engage and interact with the content and ultimately post this content to a social media site.

ADVICE FOR OTHERS

When asked what advice he would give to companies looking to begin using social media, Sanchez’s main point was “to make sure you get it right.” He said, “If you start with social media, there is no other option than to get it right.” This attitude is apparent in Publitas’s own social media use, in that their strategy has undergone a slow and thought-out development. Because Publitas started using social media only recently, they realized that they had to establish a social media presence before they could reasonably expect results.

Sanchez advises that, with social media, you cannot “expect an immediate and miraculous result.” He says “it is really a lot of work to interact with your audience and to post quality content,” which makes social media use “a long-term investment.” This is an important aspect of social media that I believe many companies overlook; as Sanchez states, “you won’t be able to see a direct return on the investment.” This issue is due to the way the effects of social media are difficult to discern and quantify. For most companies, improved customer communication, reputation management, and product promotion are goals for a social media campaign. The issue, however, lies in that it is nearly impossible to measure these two goals in terms of social media; a number of other components could be affecting customer service and sales. If social media, however, is “managed right, the return can be exponential.”

ING Direct: A Different Kind of Bank

Although recent years have further illustrated why most consumers hate banks, ING Direct USA is enjoying a great relationship with customers who use this virtual bank branch of the European banking giant ING.

ING Direct is certainly not like any other banks. Customers do business exclusively online, over the phone, or by mail. You would think that this would mean a less personalized experience for the user, but it’s completely the opposite. The bank has a simple and direct value proposition that its customers appreciate—great and competitive interest rates, 24/7 convenience, and superior customer service. In fact, when you call in and speak to someone, they sound genuinely happy to assist. Word has spread about the friendliness and knowledgeable service. In the United States alone, ING Direct has more than two million customers and growing.

The U.S. branch of this European bank is located in Wilmington, Delaware, with Internet cafes in Philadelphia, New York, Los Angeles, and Wilmington. Its Dutch origins include banking, insurance, and asset management for more than sixty million private, corporate, and institution clients in more than fifty countries. Its long-standing success around the world, which is replicated in its U.S. operations, relies on a simple but very effective set of business objectives, namely efficient use of technology, low-cost model, value focus for the customer, and a simplified and stripped-down operational framework to stay fluid and nimble. This way, the lower costs and simplified approach allow them to provide more value to customers—better interest rates and returns on putting their money with ING, as well as an extensive line of products, including savings, checking, and retirement accounts, as well as mortgages and share purchases.

The company goes out of its way to ensure customers have a great experience, including alleviating fears about working with a bank that is completely virtual. They go so far out of their way that the University of California, Berkeley, rated them as the safest bank in the country in 2008 through a study that looked at identify theft complaints. Then there are the other value-added features that make them stand out from other banks, which are currently under fire for their fees and fees on top of fees that are charged to customers for any type of business they want to do. ING Direct is completely different. They do not charge for bill paying or overdrafts and, most important, for using a debit card. If you need a paper check, they will send it to you. There are no minimum amounts to open a certificate of deposit (CD), and they will reward you with a bonus for referring them to a friend or if you decide to open more accounts with them. The key element in their success is acknowledging just how important their customer is—something that has gotten lost in how so many companies view their customers and run their businesses. When most banks make you feel as if you are inconveniencing them by working with them, ING Direct thanks you in more ways than one.

However, it’s still unknown what impact Capital One’s purchase will have on the company. The initial reaction by customers was very negative, given that Capital One has not necessarily shown itself to have the same philosophy and approach with their customers. One can only hope that ING Direct remains on the list of success case studies.

Virgin America: The Humble Airline

Unlike the aforementioned players in the airline industry, which seem to be consumed by a certain level of arrogance that clouds their judgment and might be impacting their service reputation and increasingly troubled bottom line, Virgin America, the latest brand addition to Richard Branson’s wildly successful Virgin Group of companies, has already stood out as a success.

Like ING Direct and so many other examples of successful companies, Virgin America is a humble company that understands the importance of customers in determining their success and ongoing growth. Every aspect of Virgin America’s strategy, which is built on the foundation that has led to significant achievements across many of the companies associated with the Virgin brand, is geared toward the customer experience in terms of service, amenities, and everything else that adds value.

From extensive entertainment choices, even on short flights, to low prices and custom and luxurious cabin appointments, Virgin America is beating all the domestic legacy carriers hands down. Most passengers are simply asking Virgin America to add more routes so that they can choose this carrier on every trip they plan. First, there is the entertainment. Even on a short flight, it is great to be amused because it makes time fly. Virgin’s inflight entertainment includes a display where you can order food and drinks, play video games, watch satellite TV, and interact with other passengers. It even comes with a remote that works as a video game controller and has a full keyboard on the back of it.

Then there is the airplane itself. The beaming and stylishly dressed crew members actually seem pleased to welcome you aboard. Virgin America has added some cool decor to what is usually a utilitarian experience. Purple and blue lights line the top of the cabin above sleek leather seats—and those leather seats are even provided for those of you in economy. As soon as you sit down, you are acknowledged by Virgin’s interactive screen on the back of the seat in front of you.

Other airlines could learn so much from this carrier and why they are a standout success. They even let the competition know it through their clever marketing slogan: “This is How to Fly.” Yes, there are cheaper airlines in terms of the actual flight cost, but when you factor in the service level, amenities, and overall experience from start to finish, Virgin America is a prime example of what can be done well in a service-oriented industry.

The Handbook on Strategic Evolution: Barnes & Noble

Finally, there is the success story of Barnes & Noble, which serves as a contrast to the downfall of Borders, which was described in the last chapter. This story defines flexibility and strategic evolution as two key traits for success. Overall, Barnes & Noble was able to adapt to this time and age, when people want to do things differently. In contrast, less successful companies simply stick with their initial strategy.

However, very early on, Barnes & Noble developed their Nook philosophy and started actively promoting that. Instead of being afraid that technology might kill their business, they embraced it and figured out how they could turn it into an additional revenue stream by realigning their business model to stay with the trends their target audience was following. Essentially, they took on the challenge Amazon handed them and they delivered by being flexible and adapting their business model to remain relevant.

Many have shared their opinions about what Barnes & Noble has done right and Borders did wrong. These two companies represent polar opposites of how business strategy can be developed and applied:

•Although Borders did not adequately address its Internet sales channel and ignored the e-reader movement, Barnes & Noble reacted swiftly, changing gears to address these two critical trends.

•Barnes & Noble emphasized these strategies rather than focusing on brick-and-mortar stores. That allowed them to avoid becoming enslaved to long leases for locations that performed poorly but could not be closed.

•Despite offering music, movies, games, and other media within their book stores and online, Barnes & Noble did not focus too tightly on one particular diversified segment as Borders did.

•Barnes & Noble created an efficient operational strategy to keep the organization simple so that it could respond nimbly to adjust inventory and offerings when trends among its customer base changed. Unlike Borders, Barnes & Noble has not attempted to be everything to everybody; they are just being what their customer base appears to want after studying them carefully and interacting with them.

•Barnes & Noble invested considerable resources in the 1990s to change their supply chain offerings and inventory-on-hand systems and processes, which reduced labor and time to market and kept costs low.

•In recognizing how much consumers like to linger over magazines and books, Barnes & Noble set up coffee shops within their stores to keep customers there longer and to possibly attract additional customers who might otherwise have only shopped online. They did it smartly by recognizing that consumers like brands. One of their favorites at the time—and even today—was Starbucks. As a result, they pursued and won a contract with this admired and successful brand.

•To attract customers to their physical locations, Barnes & Noble regularly hosts in-store concerts and children’s story times, making a trip to the bookstore an experience rather than an errand. This is another way to pull customers away from their computers to shop for what the company offers.

•Finally, Barnes & Noble is led by people who are passionate about the business. Unfortunately for Borders, those who acquired the company and had leadership roles came from “big box” retailers and were not necessarily in love with the product offering in the way book-oriented people are.

LESSONS TO BE LEARNED: TIMING IS EVERYTHING

In looking at these examples, one of the lessons to be learned is that “timing is everything.” Timing is a crucial element of why some companies are more successful than others. Though it often combines with other factors, such as chemistry, it’s true that without the right timing, you will not reach full potential. Although people often say, “It was not meant to be,” what they are truly referring to is timing.

For example, we recently met with another company to discuss a strategic alliance between our two companies. From the start, our conversations ran smoothly and quickly. We came to the conclusion in a minimum amount of time that nothing would prevent us from moving forward together and that we were a perfect fit for one another. The interesting angle of this story is that we had had these same discussions three years earlier. Even then, we felt it might be a good fit and reached the same conclusion just a year and a half ago. However, in both cases, it turned out that we could not progress. At the time, we blamed chemistry. The problem really was that our heads were simply not in it. In both instances, our companies were still developing, so it was clear that we simply were not ready for that kind of step. However, everything has changed at the time of this writing. This other company has adapted to its market and made improvements; E Factor has grown significantly and is now regularly receiving interest about its mentoring and coaching capabilities from members. Voila! Our discussions this time around were simple, purely because both companies were ready for the alliance.

Another thing to remember about timing is never to write off contacts that do not lead to something immediately. I know from experience how hard it is to maintain thousands of casual and business relationships. However, with today’s advanced technology like convenient social networking tools and devices that allow you to upload contact information quickly, it’s much easier to maintain these potential points of contact for future opportunities. Another way to keep in contact, which we use at E Factor, is to write regular blogs and share the information with all of our contacts. The result of this sharing is active interaction, which leads to interesting exchanges of ideas, as well as new paths to explore. You might also create a newsletter to keep your contacts informed about your activities and adventures. Or simply add them all to your Twitter list so you can use briefer messages to connect from time to time. What you will find over time is that those connections will lead to something valuable—but only when the time is right, of course!

Timing also plays a major role when it comes to raising the funds necessary to start a business or expand operations. This reminds me of when I was invited to invest in a company during the 1980s. The company had developed very impressive 3-D software, which at the time required a roomful of computers to do all of the necessary calculations. However, in my opinion, it was simply not the right time—it would have been much too expensive to be the evangelist to bring something to market at a time when the audience clearly was not educated or informed enough about 3-D to take up the cause. Now of course, thanks to James Cameron, who developed his own 3-D technology with his strategic partners to make the movie Avatar, 3-D is now all the rage across so many applications. That is why, if you want to bring something new to the market, you always want to consider if the timing is right and if you have enough money to educate those you are trying to interest, if necessary.

So, if you feel that the timing is not right, you should not force it but simply sit back, stay in touch, and wait until it is right. Again, this is why networking—traditionally and virtually—is such a vital activity for you as an entrepreneur.

MORE LESSONS: THE ART OF THE SALE

Selling is an art. You might know that as an entrepreneur, but you might not fully understand the finer nuances of viewing sales in this way. The managers of today’s successful companies fully comprehend the artistic process necessary for sales. Selling is not something you do “in between” other chores or without thought and careful preparation. If you want to excel in sales, it will take a lot of time and a lot of discipline. Let’s start from the beginning.

You have an idea for a product or service or maybe you already have moved it to a more finalized state. You want to bring this to the market. The first question you should ask yourself is Why? Is it because you like it yourself or because you feel there is a market for it? Did you research whether there are similar products or services? And, if there are, what is their place in the market and how do they position themselves? You can either place your product or service in the same way (which will always cost you a percentage of your margin) or you can give it a twist and make it something new and different and more exclusive. If so, then price will not be the mainstay of your sales process.

Did you consider which industry will be best for your product? And, if so, which segment of that market would you like to enter? It is important to understand that many large corporations have preferred supplier lists and getting onto these could be a long, arduous process. Although they obviously have and spend the money, is this approach really the best way for you to start and, if so, how do you go about it? Or, should you consider a lower, smaller group of companies (midsized) that offer much easier and quicker access?

Once you have chosen your segment, it is worthwhile to speak to a number of potential customers about your intended product/service. Under what terms would they actually consider using your product/service or switching from a competitive one? Answers to these kinds of questions will help you fine-tune and sharpen your selling proposition.

If you have a brand new and unique product/service (and trust me, you should be honest with yourself answering that question!), consider if you have enough working capital lined up to allow you to spend time educating your audience. They need to understand what it is you are selling. They are probably not waiting for your product or service, so it will take quite some time to get them on board. Therefore, you will need to bridge that time period between consideration, interest, and purchase.

Once you do have your product/service, you know how to position it, and you understand your market, then and only then can we really start selling. The whole sales process is a matter of the utmost discipline, and it is a numbers game. Use your time efficiently. For instance, the actual prime selling time you have each day is from 9 A.M. to 6 P.M. Given that it has been scientifically proven that you only use 50 percent of that time effectively, everything that has nothing to do with the actual selling itself, such as drafting proposals, preparing for your calls, and doing your paperwork, needs to be done in the evening or during the weekend. Plan your time efficiently by lining up more than one appointment in any given area you visit. Set aside time in a quiet environment where you can concentrate and not be disturbed every five seconds to call and plan your appointments.

Next, it is all about follow-up, follow-up, follow-up. One of the biggest mistakes we see is that people set an appointment, do the meeting, and then do not respond fast enough. Do not leave it a week or so; follow up with your prospects when the meeting is still fresh in their minds. Use a customer relationship management program to track your process and be disciplined about it. Do not put off a follow-up call or meeting because you are a little worried about it—it’s better to know than not to know. You need to figure out and learn how many calls lead to how many meetings lead to how many proposals lead to how many sales. That is the only way to forecast the revenue you will generate each month or quarter accurately. It really works, but you have to understand this process and stick with it to reap the rewards.

KEY POINTS TO REMEMBER

•Early on, successful entrepreneurs realize that they cannot always stick with their original plan. If anything, changing the plan will actually result in bigger and better results than originally anticipated. This means being flexible and willing to evolve strategically and adapt to stay strong and relevant.

•Stay focused more on how to be the best that you can be, which is something that many entrepreneurs and company leaders have not yet learned to do.

•Engage with customers continually to learn from them, research everything, and consult statistics regularly to see where changes need to be made.

•Timing is everything; it’s a crucial element of why some companies are more successful than others.

•Selling is not something you do “in between” other chores or without thought and careful preparation. If you want to excel in sales, it will take a lot of your time and a lot of discipline.

•The case studies in this chapter show companies that are willing to change, adapt, be flexible, be open, listen to their customers, interact with their customers and partners, be humble and appreciative, be socially responsible, and imbue all their actions and decisions with the passion they have for their business and what they are doing.