Gov. Jennifer Granholm said she’ll focus on recruiting automotive and alternative energy companies to Michigan during her upcoming weeklong trade mission to Sweden and Germany.
Granholm announced an itinerary that begins next Monday and includes visits to three Swedish cities and meetings with executives of six German companies.
She will begin the trip with a keynote speech to a Swedish American Chamber of Commerce assembly of 500 business and government leaders. “Some of it is prospecting, and some of it is deal-closing,” Granholm said, adding that the Michigan Economic Development Corp. has already been working with companies to obtain agreements for Michigan operations.
Of particular interest is Sweden’s renewable energy and biofuels industries, she said. Granholm said Sweden has an ambitious plan to convert nearly all power to renewable energy sources by 2020, and she hopes to convince those industries to come to Michigan. Read more here.
Wednesday, August 15, 2007
Monday, August 06, 2007
Why Full Disclosure and Transparency Matter
An Orlando area newspaper columnist recently railed against further government support for the Metro Orlando Economic Development Commission. She cited exaggerated claims the organization made concerning its role in the location of several companies to the region. Unfortunately, some of the businesses subsantiated the columnist's claims that the MOEDC had little, if any, involvement in their relocation.
The result: damage to the credibility of the organization regardless of how inaccurate the claims may be. The organization should plan a swift, proactive response that is authentic and completely tranparent. They then may earn an opportunity to educate the public on how their efforts contribute to economic growth regadless of their level of involvement with a particular relocating company.
I am sure the MOEDC is a valuable development organization for the region. Unfortunately, it has allowed itself to be measured (and thus, judged) on jobs and investment, two measures any EDO has little control over. We need more realistic metrics that are both comprehensive and measurable to better reflect the true value an EDO brings to a community. Read the opinion column here.
The result: damage to the credibility of the organization regardless of how inaccurate the claims may be. The organization should plan a swift, proactive response that is authentic and completely tranparent. They then may earn an opportunity to educate the public on how their efforts contribute to economic growth regadless of their level of involvement with a particular relocating company.
I am sure the MOEDC is a valuable development organization for the region. Unfortunately, it has allowed itself to be measured (and thus, judged) on jobs and investment, two measures any EDO has little control over. We need more realistic metrics that are both comprehensive and measurable to better reflect the true value an EDO brings to a community. Read the opinion column here.
Is It the Death of Demographics?
By Don Peppers
Are the days of demographics as a primary marketing tool over? Market segments are shrinking as information becomes more accessible and easier to analyze. Marketing based on location or purchase history is becoming outdated –- who responds to direct mail addressed to "current resident" anymore?
A unique dialogue with each individual customer, the ideal in one-to-one relationships, is now possible, according to Chris Bailey, CEO of RatePoint, which promotes and analyzes online ratings systems.
"Demographics are a crude way of looking at markets, almost a segmentation of a macro vision of how you approach customers," Bailey says. "If you can get the segment down to one [customer], you can have a much more optimized delivery with instant return."
As futuristic as it may seem to say that companies can communicate with each of their customers differently given today's global marketplace where a small market share could mean millions of consumers, he's not alone in his views.
Martha and I have been advocating this point since day one, and now it looks like technology and strategy have caught up to the idea in a more mainstream way. "Technology today is aligned with [Bailey's] point," says Linda Vytlacil, vice president of Decision Sciences for Carlson Marketing. "Companies are organizing to execute against much more highly individually relevant and uniquely compelling communications to consumers."
Inexpensive storage capacity, software capable of searching large databases, and the prevalence of consumer data collected via the online channel all contribute to more individualized communication. Traditional media like television and print that are mass-produced are suffering as a result of this trend because they can only target large groups, according to Bailey. His contention that demographics are dead, however, is not certain.
"Demographics aren't dead, but using broad sociodemographic information alone for targeting might be," Vytlacil says. "That just isn't as relevant as an organization could be if it knew specific information about a customer."
A better understanding of a customer leads to predictions of behavior, Bailey claims. "Utilizing better and more specific information lets you come up with a profile of each customer and try to make assumptions on their next actions based on what other, similar customers have done," he says. In other words, what does this customer most need from us next?
The question is, where does all this new relevant, critical information on customers come from? Social media and other Web 2.0 technologies will contribute, but Vytlacil sees even more direct interaction between customer and company providing significant insight.
"What's going to be the driver here won't be what the company can extract from the consumer," she says. "It's the collaboration that companies will be doing with their customers." She points to KLM, an airline company that allowed customers to create personalized luggage tags similar to the way credit card imprints can be personalized with different images. In that way the company is collecting such data on customers as their interests without sending a survey or buying a demographic list.
Regardless of how companies acquire it, the key is relevant, specific information. "We won't just be looking at demographics anymore," Bailey says, "but we'll be looking at an individualized approach to optimize results and improve the customer experience."
For more of Chris Bailey's thoughts on the future of demographics, listen to the 1to1 on the Run podcast, "The Death of Demographics."
A question that all economic developers should ask is how changing technologies can help build one-to-one relationships with their various audiences.
Are the days of demographics as a primary marketing tool over? Market segments are shrinking as information becomes more accessible and easier to analyze. Marketing based on location or purchase history is becoming outdated –- who responds to direct mail addressed to "current resident" anymore?
A unique dialogue with each individual customer, the ideal in one-to-one relationships, is now possible, according to Chris Bailey, CEO of RatePoint, which promotes and analyzes online ratings systems.
"Demographics are a crude way of looking at markets, almost a segmentation of a macro vision of how you approach customers," Bailey says. "If you can get the segment down to one [customer], you can have a much more optimized delivery with instant return."
As futuristic as it may seem to say that companies can communicate with each of their customers differently given today's global marketplace where a small market share could mean millions of consumers, he's not alone in his views.
Martha and I have been advocating this point since day one, and now it looks like technology and strategy have caught up to the idea in a more mainstream way. "Technology today is aligned with [Bailey's] point," says Linda Vytlacil, vice president of Decision Sciences for Carlson Marketing. "Companies are organizing to execute against much more highly individually relevant and uniquely compelling communications to consumers."
Inexpensive storage capacity, software capable of searching large databases, and the prevalence of consumer data collected via the online channel all contribute to more individualized communication. Traditional media like television and print that are mass-produced are suffering as a result of this trend because they can only target large groups, according to Bailey. His contention that demographics are dead, however, is not certain.
"Demographics aren't dead, but using broad sociodemographic information alone for targeting might be," Vytlacil says. "That just isn't as relevant as an organization could be if it knew specific information about a customer."
A better understanding of a customer leads to predictions of behavior, Bailey claims. "Utilizing better and more specific information lets you come up with a profile of each customer and try to make assumptions on their next actions based on what other, similar customers have done," he says. In other words, what does this customer most need from us next?
The question is, where does all this new relevant, critical information on customers come from? Social media and other Web 2.0 technologies will contribute, but Vytlacil sees even more direct interaction between customer and company providing significant insight.
"What's going to be the driver here won't be what the company can extract from the consumer," she says. "It's the collaboration that companies will be doing with their customers." She points to KLM, an airline company that allowed customers to create personalized luggage tags similar to the way credit card imprints can be personalized with different images. In that way the company is collecting such data on customers as their interests without sending a survey or buying a demographic list.
Regardless of how companies acquire it, the key is relevant, specific information. "We won't just be looking at demographics anymore," Bailey says, "but we'll be looking at an individualized approach to optimize results and improve the customer experience."
For more of Chris Bailey's thoughts on the future of demographics, listen to the 1to1 on the Run podcast, "The Death of Demographics."
A question that all economic developers should ask is how changing technologies can help build one-to-one relationships with their various audiences.
Branding Promises Fort Collins Renewal
Look alive, Fort Collins, because we want the whole world to know that this is the place "where renewal is a way of life."
That proposed slogan incorporated into a swooshy logo representing the foothills and Poudre River is perhaps the most tangible product to come out of an $80,000 branding study commissioned by the city.
But city staffers insist the logo is but a very small part of a much bigger branding proposal. It is aimed at establishing a consistent, distinct and unique identity reflecting Fort Collins' superior essence in efforts to market the city as a destination for businesses, visitors and residents.
The findings and recommendations contained in the branding study now are being shopped around in presentations to various boards and civic organizations. Later this fall, the Fort Collins City Council will consider adopting the logo and allocating $236,775 requested to begin implementing the branding program. That first phase would include directional signs, promotional materials and development of a "portal" web site, fcrenew.com. Read more here.
That proposed slogan incorporated into a swooshy logo representing the foothills and Poudre River is perhaps the most tangible product to come out of an $80,000 branding study commissioned by the city.
But city staffers insist the logo is but a very small part of a much bigger branding proposal. It is aimed at establishing a consistent, distinct and unique identity reflecting Fort Collins' superior essence in efforts to market the city as a destination for businesses, visitors and residents.
The findings and recommendations contained in the branding study now are being shopped around in presentations to various boards and civic organizations. Later this fall, the Fort Collins City Council will consider adopting the logo and allocating $236,775 requested to begin implementing the branding program. That first phase would include directional signs, promotional materials and development of a "portal" web site, fcrenew.com. Read more here.
Tuesday, July 31, 2007
As a brand, Oregon has ended up a tough sell
In his first term, Gov. Ted Kulongoski launched an ambitious plan to put Oregon on the world map, to brand it as the place where berries taste better, businesses thrive and sophisticated tourists come to play.
Three years later, the effort has fizzled after Brand Oregon officials failed to sell it to the Legislature.
Lawmakers refused to give Kulongoski's pet project any of the $1.6 million requested, saying that schools, colleges and construction were "more important, if you will, than expanding a label," said Sen. Kurt Schrader, D-Canby, who with Rep. Mary Nolan, D-Portland, led the budget-writing Joint Ways and Means Committee. Read more here.
Three years later, the effort has fizzled after Brand Oregon officials failed to sell it to the Legislature.
Lawmakers refused to give Kulongoski's pet project any of the $1.6 million requested, saying that schools, colleges and construction were "more important, if you will, than expanding a label," said Sen. Kurt Schrader, D-Canby, who with Rep. Mary Nolan, D-Portland, led the budget-writing Joint Ways and Means Committee. Read more here.
Officials put new Greeley brand to fire
Greeley City Manager Roy Otto may be the spitting image of how officials hope residents will adopt the city's new branding campaign.
During every city council meeting, Otto outlines what is great about Greeley and follows it up with the branding campaign tag line."It's what makes Greeley great from the ground up," Otto often says.
Almost five months into the two-year plan to implement the branding campaign to improve Greeley's image in Colorado and beyond, officials have spent countless hours and thousands of dollars putting the brand into action.
The Greeley Chamber of Commerce paid North Star Destinations $67,000 to create the new brand. Of that money, Greeley contributed $10,000. Read more here.
During every city council meeting, Otto outlines what is great about Greeley and follows it up with the branding campaign tag line."It's what makes Greeley great from the ground up," Otto often says.
Almost five months into the two-year plan to implement the branding campaign to improve Greeley's image in Colorado and beyond, officials have spent countless hours and thousands of dollars putting the brand into action.
The Greeley Chamber of Commerce paid North Star Destinations $67,000 to create the new brand. Of that money, Greeley contributed $10,000. Read more here.
Farming the Field vs. Low Hanging Fruit
By Patrick McConahy, Whittaker Associates
There are basically two main ways in which economic development organizations can pursue leads. One way is to look for those few companies out there that we classify as “low hanging fruit”. These companies have plans to grow immediately and rapidly develop an area. The other way to pursue leads is by “farming the field”, casting your net wide and then slowly reeling them in. Valid arguments can be made for both approaches in terms of what way is the best, but at the end of the day you cannot focus on just one and forget about the other.
One of the biggest changes we’ve seen in the economic development industry over the past year is the growing need to find these “low hanging fruit” leads. Read more here.
There are basically two main ways in which economic development organizations can pursue leads. One way is to look for those few companies out there that we classify as “low hanging fruit”. These companies have plans to grow immediately and rapidly develop an area. The other way to pursue leads is by “farming the field”, casting your net wide and then slowly reeling them in. Valid arguments can be made for both approaches in terms of what way is the best, but at the end of the day you cannot focus on just one and forget about the other.
One of the biggest changes we’ve seen in the economic development industry over the past year is the growing need to find these “low hanging fruit” leads. Read more here.
Saturday, July 28, 2007
Place Branding: Rochester, New York
I recently led the first phase of the effort to brand my hometown, Rochester, New York. I'd like to share my thoughts on this ongoing process.
Like it or not - we are branded. Whether intentionally managed or not, brands exist in the minds of people to whom they should matter. I most often hear the following associated with Rochester by people who don’t know the city: snow, Kodak, downsizing, economically struggling Upstate city, long winters. These are not the words or phrases most of us would want associated with Rochester at the top of people’s minds. Take snow for example. Snow is not so bad if you are Colorado or Utah. And, we don’t get nearly as much snow as Buffalo or Syracuse. And, it is great that Bristol Mountain is only a half hour away. But, there may be other associations that are more helpful.
In the online survey I conducted, the following most resonates with residents: “Small town feel, big city culture,” reflecting our plethora of museums, musical concerts, film festivals, etc. but also our (mostly) friendly residents, easy commutes, affordable housing, cozy neighborhoods, etc.
While we will likely never successfully compete with New York and Chicago and San Francisco, I believe we should be able to very successfully compete with Austin, TX, Portland, OR, Columbus, OH, etc. Read more here.
Like it or not - we are branded. Whether intentionally managed or not, brands exist in the minds of people to whom they should matter. I most often hear the following associated with Rochester by people who don’t know the city: snow, Kodak, downsizing, economically struggling Upstate city, long winters. These are not the words or phrases most of us would want associated with Rochester at the top of people’s minds. Take snow for example. Snow is not so bad if you are Colorado or Utah. And, we don’t get nearly as much snow as Buffalo or Syracuse. And, it is great that Bristol Mountain is only a half hour away. But, there may be other associations that are more helpful.
In the online survey I conducted, the following most resonates with residents: “Small town feel, big city culture,” reflecting our plethora of museums, musical concerts, film festivals, etc. but also our (mostly) friendly residents, easy commutes, affordable housing, cozy neighborhoods, etc.
While we will likely never successfully compete with New York and Chicago and San Francisco, I believe we should be able to very successfully compete with Austin, TX, Portland, OR, Columbus, OH, etc. Read more here.
Prosperity doesn't come from jobs alone
For decades, the successful relocation of new businesses to the Roanoke region has been good news. Intense efforts to recruit companies have been led for almost 24 years by the Roanoke Valley Economic Development Partnership -- the region's economic development marketing organization that is funded by the private and public sectors.
Results have been steady, with more than 13,400 new jobs and $1.2 billion in investment attracted by the partnership over that time. That's a very credible record, but is it enough to drive prosperity in the Roanoke region well into the 21st century? Read more here.
Results have been steady, with more than 13,400 new jobs and $1.2 billion in investment attracted by the partnership over that time. That's a very credible record, but is it enough to drive prosperity in the Roanoke region well into the 21st century? Read more here.
Friday, June 29, 2007
How Will They Answer the "Ultimate Question"
An intriguing opportunity for communities is presented by management consultant Fred Reichheld in his book The Ultimate Question.
Reichheld and his colleagues retained a research firm, which went to thousands of customers in six industries (financial services, cable and telecommunications, personal computers, e-commerce, auto insurance and Internet services). It asked questions about satisfaction and then it tracked the purchase behavior of those customers.
They discovered the one question a company can ask its customers that links so closely to their behaviors that it provides a practical surrogate for behavior. The question is one that has been used in customer satisfaction surveys for decades: would you recommend this company (or product, or service) to a friend of colleague? By subtracting the number of detractors (those who give a company 6 out of 10 or less) from the number of promoters (those who give the company a 9 or a 10), a company can arrive at what Reichheld calls its Net Promoter Score, a measure of how well it is generating loyalty.
Communities should be asking this question of their existing businesses to determine overall levels of satisfaction. The community Net Promoter Scores should be monitored constantly and used for comparative purposes. For instance, benchmarking your community’s Net Promoter Score against another’s is easily accomplished and can lead to new insights about your own. Segmentation between different industry types is possible. More importantly, it can be used as a measure of the impact of various retention strategies, community initiatives or public policy changes.
The Net Promoter Score is a measure that fits the changing dynamics of economic development marketing and a new emphasis on non-traditional media and word-of-mouth. It also works to the benefit of an approach increasingly being used by communities that focuses more on building relationships with existing businesses and entrepreneurs and less on mass marketing appeals.
Reichheld and his colleagues retained a research firm, which went to thousands of customers in six industries (financial services, cable and telecommunications, personal computers, e-commerce, auto insurance and Internet services). It asked questions about satisfaction and then it tracked the purchase behavior of those customers.
They discovered the one question a company can ask its customers that links so closely to their behaviors that it provides a practical surrogate for behavior. The question is one that has been used in customer satisfaction surveys for decades: would you recommend this company (or product, or service) to a friend of colleague? By subtracting the number of detractors (those who give a company 6 out of 10 or less) from the number of promoters (those who give the company a 9 or a 10), a company can arrive at what Reichheld calls its Net Promoter Score, a measure of how well it is generating loyalty.
Communities should be asking this question of their existing businesses to determine overall levels of satisfaction. The community Net Promoter Scores should be monitored constantly and used for comparative purposes. For instance, benchmarking your community’s Net Promoter Score against another’s is easily accomplished and can lead to new insights about your own. Segmentation between different industry types is possible. More importantly, it can be used as a measure of the impact of various retention strategies, community initiatives or public policy changes.
The Net Promoter Score is a measure that fits the changing dynamics of economic development marketing and a new emphasis on non-traditional media and word-of-mouth. It also works to the benefit of an approach increasingly being used by communities that focuses more on building relationships with existing businesses and entrepreneurs and less on mass marketing appeals.
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