Thursday, October 23, 2014

Comparing newspaper ad spend vs. time spent with media per day

There are a bunch of charts out there that are designed to scare anyone associated with the newspaper business. OK, they are designed to give you a quick snapshot of the industry, which might be scary to some in the industry.

The decline of circulation is a tough chart to review. The rise of other media and  their increases in revenue can be hard to swallow. For me, the toughest chart is the ad spending vs. time spent with media chart. Newspapers, despite the tumble of revenue, still brings in a lot of revnue. Unfortunately that revenue not in proportion to the amount of time people spend with a newspaper.

Timespent
So what can be done?

To me, this is not an audience or revenue issue. Clearly the business needs to hold to and grow when possible revenue. The audience needs to be cultivated, especially a younger audience to help secure long term relevance. But the answer to me is better audience engagement!

Content is king. Too many newspapers are still producing the same basic product that they did in 1984, completely forgetting that it is 2014. Content tastes vary by market, but editors need to keep their ear to the ground to find out what works locally.

Tell a story, but do it efficiently. Too many times you still see newspapers devoting 40" of content for stories that were told in 15". Tell the story in a timely manner too. There are still newspapers that provide indepth copy of sporting events that are 36 hours old (or older) when they finally reach the end user. That NASCAR race or baseball game might not warrant game coverage if it doesn't make that next day's paper.

More details on Harrison Jacob's story on the newspaper's horrible 10 year run can be found at http://www.businessinsider.com/brookings-essay-on-decline-of-newspapers-2014-10


Monday, October 13, 2014

Four great business tips from Disney Cruise Lines

This past week, I've been fortunate enough to spend a week on a Disney cruise. It was great to spend time with my family and unplug from the daily grind of work. But even in those 'unplugged' moments, I could help but think about good business practices.

Disney is a great example of a high standard, high profit organization. Walt Disney was a true innovator, but let's also give the man credit for some solid business practices. Walt has been dead nearly 50 years, yet his legacy continues as do some great business lessons.

During the week, I jotted down several really good practices / ideas. Here are just four of the best from my week floating around the ocean.

1)  Don't just be very good, be excellent -- After our first dinner on board, the head server came to our table to see how service was, how the food was and to introduce himself to our table of seven. He asked the group if dinner was 'very good'. All of us were eager to say yes, because the food and service was at a very high level. As we all agreed that it was 'very good', he let us know that the next night the goal was to be 'excellent' and not just 'very good'. No matter how good the product or service, the sites for your performance has to  be higher. You will never achieve that perfect product, but striving for more even when your customers are thrilled is a noble pursuit.

2) Identify your key customers -- My wife and I debated just how many Disney cruises we have been on. We've decided it is now up to seven. I'm sure Disney knows, as they do an excellent job of identifying repeat customers through small tokens of appreciation like small carry-on bags and lanyards that designate your level of achievement in their loyalty program.. We are gold members of the Disney Castaway Club. When you're on a cruise ship,  your room key is your cash, your ID and of course your room key. The gold member lanyard, besides being a nice little perk is a great way for them to identify their key customers. And they do recognize you if you're wearing these. Not that they don't ask a first time passenger, I'm sure they do. But knowing who the core customers are, and insuring their satisfaction is a business basic to have a healthy business.

3)  Active management looking for feedback -- I mentioned the very good to excellent manager experience on night one. That is really just the tip of the iceberg, so to speak! Every manager is on the prowl for feedback. They also have a formal feedback system in place, where good and back customers experiences are recorded. Employee recognition and rewards are based in part on customer feedback. Disney does a good job of this on their boats and in their parks. Another theme park operator, who I believe does a good job of taking the best from Disney and putting it to work is Holiday World in southern Indiana. Talk about manager's on the prowl for feedback! Most every time I've been to this themepark, at least once a year for the past ten years in fact, I've seen the owner sweeping the sidewalks, talking to customers and employees. Remember, there are internal and external customers that you need to get feedback from to be successfull.

4)  Constantly and openly improving your product -- I've been reading the Mark Twain classic "Following the Equator" over the past month or so. I've read it in small bites, but will finish it! In that book, Twain taught me that a ship must always be being painted or it is bad luck. I never knew that. Disney does not want that bad luck either, and so the tradition continues. But even beyond the superstition, I think it is a great symbol for the company to show its employees and customers. It is an investment to continue to maintain and up grade your facility, and your product. It creates a sense of pride in your work force, which no doubt rubs off to how your customers are treated by those employees. In Disney's case, it also allows you a chance to separate yourself from your competitors. There are cheaper cruises that have similar iteneraries available, but I have developed brand loyalty in part to the experience and the quality of the product they produce.

All of those ideas can easily work into all businesses. The results, if you work hard enough, will be a better product, happy customers, happy employees and more profits!