Summer reading with a purpose
I’ve found a book you need to read this summer: Flip The Funnel
The author, Joseph Jaffe, who also happens to be President of Crayon, asks a very basic question: Why are we spending all our resources trying to reach people who either don’t know about us, or worse, who know and don’t care?
His idea isn’t new, but the way he presents it is exceptionally clarifying and focused, and that is always worth your time.
In an age of limited resources, why are we spending so much trying to get new converts, rather than spending 99% of our time and money on those who already love us?
If you flip the funnel, and focus your attention and resources on making those who love you, love you even more — buy more of what you sell, listen longer, watch more — chances are they will evangelize for you.
Truthfully, companies that already do this — Zappos, Apple, Nordstroms — have enviable profits and stock prices. Best of all, everyone loves them.
How good must that feel? To be loved and getting rich simultaneously.
20 or so years ago, a company I will leave unnamed, did something with a Denver radio station that was brilliant. They paid what I heard was around $250,000 to do a customized research study that showed them every Denver household that contained their P1 and P2 listeners.
They paid for a list of names, addresses, and phone numbers of those listeners that loved their station.
The remainder of that year, and the next, they spent very modest sums — typically in the $50-$100 range per family — to “encourage” these P1 listeners to continue to listen, and to listen in hours they hadn’t previously heard the station. And, an even more modest sum to directly incent some of their P2 listeners, in hopes of converting them to P1 status.
They went from out of the Top 10 25-54 to #1 in the first Arbitron ratings following this tactic.
Read the book.
Think about how you can use your money, and your staff, to make those who already love you, love you even more.
I think you’ll like the results.