Stephanie Sammons

7 Important Themes for Professional Advisors Participating in Social Media

If you are a financial advisor, CPA, lawyer, doctor, dentist, consultant, or someone in the business of selling services to clients, your social media foundation should be built upon the elements that are most relevant to growing your practice.

You have probably read and heard about many generic social media and blogging strategies that the so-called “big brands” are using to attract new customers, but what about those of us who are not in the business of selling products to the masses? Do you really need to capture significant market share, or simply land a handful of high quality clients or customers in order to add to your bottom line?

Read the original article:  7 important themes for professionals participating in social media

Sallie Krawcheck for CEO

Here we are again with another opportunity for a woman to take the helm of one of our major corporations.  Sallie Krawcheck was named to run the brokerage arm of Bank of America back in August and seems to be doing a stellar job of rallying the herd by "bringing back the bull".  Now it is rumored that she may be first in line for the CEO position at Bank of America.  However, she is already being dismissed by some in the media before she's even been offered the job!  My guess is that if she gets the job, she'll be forced out as soon as she's cleaned up all of the messes that were left and promptly be succeeded by "one of the guys" who will sweep in and graciously accept all of the credit.  Have we already forgotten about Carly Fiorina, Hewlett-Packard?  She never stood a chance.

Sallie has done one heck of a job to stay above the fray and survive the disasters of the past couple of years.  In yesterday's Forbes article, "A Disaster Named Krawcheck", Charles Gasparino does a fine job of attempting to dismantle Krawcheck's credibility, even going so far as to criticize her southern accent.  He alludes to the idea that Krawcheck completely missed the boat on the credit crises.  He attempts to strengthen his case by referring to 'analysts' that agree with him, but never mentions any names.  In fact, he mentions that one top analyst characterized Krawcheck as being "in over her head".   Apparently everyone on Wall Street was in over their head or we wouldn't be in this mess.  In Michael Moore's new movie "Capitalism:  A Love Story" you'll see a former Lehman Brothers executive trying to explain what a derivative is (and he doesn't do very well).  The great financial disasters in this country were always a result of collective greed and this one was no exception. 

The truth is, there are many talented women on Wall Street that are kept out of the senior circles, despite their experience, credentials, and even the respect of their people.  It is an extremely powerful force that keeps them out.  The lack of gender balance in the executive ranks  in the financial services industry continues to be an issue, and here again we are witnessing the lynching of another talented woman who deserves an opportunity to prove herself.  She is gifted, smart, experienced, a team player, and well qualified for the role.

A few weeks ago, I posted a story aired by CBS correspondent Kelly Wallace entitled "Does Wall Street Need More Women"?  Wallace reported that corporations headed by women were performing slightly stronger than those run by men.  Jacki Zehner, investor and philanthropist was profiled in the story.  She was the youngest woman to make partner at Goldman Sachs in 1996.  "If there had been a critical mass of women over a period of time at the decision-making tables, would we be in the place that we are in today? I don't think so," Zehner said.  If the guys couldn't get it right, maybe we ought to let the gals try!

Lessons In Credibility

As I connect with people more and more using social media technology, I find myself primarily attracted to following new people who have crafted a professional image on the web.  It seems that in a world where the internet is the great equalizer, and where anyone and everyone can build a community online around their product or service offering, those who invest in a professional image will have a competitive edge.  With all of the various social media services, it certainly has become easier to craft your online image and reputation, but still it seems that many opt for the 'cheap' route, even down to using an unprofessional snapshot.  With social friend/family sites such as facebook, it is certainly more acceptable to show your 'personal' side.  If you are trying to build a business, however, you may want to make an investment in showcasing your credibility.

Initially I fell victim to the "do it yourself" idea of creating a half-baked design for my own brand (even purchased adobe photoshop) in an attempt to cobble together my professional web image when I realized that I was totally wasting my time.  Although I did have a professional photo (and use it everywhere), each of my design attempts have ended with frustration and a 'failure to launch'.   The bottom line is, I am not a designer and never will be.  Through outsourcing the process of creating my professional brand, not only am I getting great design results for my new businesses, but I'm receiving valuable ideas and input about my brand...which I never would have come up with on my own.  I have found it to be crucial to invest in the professional image and credibility of my brand before fully launching my ideas.  (currently under development...stay tuned). 

An example of what I am referring to?  There have been several instances where I have found interesting opinions on the investment site www.seekingalpha.com.  This is one of the sites where I look for credible authors to follow in order to get their opinions about the markets, stocks, etc.  As I dig deeper into the author's background (I want to make sure he or she is not a rookie, or a fraud for that matter), I am looking for that credibility stamp...a professional image (this would be a nice photo folks), a professional blog or website, and a professional business.  In many cases what I've found at the conclusion of my search is a lack of overall credibility.  There is one financial "guru" in particular (won't mention name to protect) who has some good insights, and has even been interviewed on CNBC...but his picture looks like someone snapped a photo in his office (not professional), his website(s) are lackluster and cobbled together, and I can find nothing about his asset management or financial experience.  If there is information out there about his background, I lost interest in searching after 20 minutes.  He doesn't make it easy to learn about him.  When searching for particular financial advisors and analysts to follow on the web, it gets even worse.  There are only a handful who have launched a 'professional' and coordinated image from the start. 

The key is, in the age of differentiating yourself, you've only got one chance to make a first impression on the web.  It is vital to have a coordinated and fluent web profile that is professional and credible.  Otherwise, you lose an opportunity to earn a follower and ultimately make a sale. For professionals and business owners who understand the importance of creating a credible online reputation, I believe it will be easier to gain market share.  Invest in professional photo, brand identity (logo, marketing collateral, etc) and in your brand message.  Ultimately the ROI will come.

Whole Foods Earnings Beginning to Validate the "Go Organic" Trend

 

Whole Foods-A Culture That Changes Lives, and a Stock With Potential Opportunity

I am a huge Whole Foods fanatic...it's the only place I shop for food.  In fact, my  routine includes stopping by to get my lunch there daily.  Every Friday they grill organic burgers, and I am not necessarily a burger person, but this is one place you can eat a burger with NO SIDE EFFECTS! 

YES it's expensive (but so are health problems from eating poorly), and YES initially, it is tasteless...however, it will change your life, and it will be an experience that you must engage in regardless of price.  I challenge you to eat organically for a week.  Just get everything you put into your body from Whole Foods.  I don't care if that includes pizza and cookies, just do it.  You will experience NO PAIN (other than getting used to the bland taste).  How do I know that eating organically can change your life?  Yours truly.  Once you cross over you can't go back.  Once you STOP eating organically, you will feel like a train has run over your body.  I don't care where you go, what you cook, or what you eat, you won't feel like you feel when you are eating purely organic clean foods.  It is truly amazing and I have become a huge believer.

I've always loved to invest in companies that can generate 'inelastic' demand.  This means that regardless of economic conditions, demand exists at all levels and price is not an issue.  Tobacco and coffee are also products that are considered to have 'inelastic' demand properties.  These products are addictive, arguably.  Another way that companies create inelastic demand is by creating a culture, and a loyal community that bonds around an experience.  We are back to the theme of "Value is a function of your experience."

Whole Foods doesn't compete on price.  They offer an experience, and more and more Americans are jumping on the bandwagon.  They have carved out a niche of organic food lovers.  As I'm standing in line at the pizza bar at Whole Foods, I'm bonding with the guy behind me discussing how great it is to eat organic pizza.  This is a culture being created and nurtured, and it's only going to grow as people connect that feeling good = organic foods in the body.  Whole Foods is creating a culture of people who want to feel good.

Is Whole Foods a potential investment opportunity? (WFMI)
-This week "Food Inc" hits selected movie theaters...exposing what truly goes into the food we eat (and reportedly we will be disgusted by what we learn)
-Whole Foods hit 1 Million Twitter Followers today
-John Mackey, the founder and CEO, is dedicated and solid
-The stock has come down from $77/share in late '06 to $9 in late '08 and at $20.45/share today
-The company tried to expand too quickly and got caught in a recession but is recovering strongly
-Last I looked the short interest was high (many times a bullish sign)

All I'm saying here is, you've got a great management team, a company that offers a "feel good" value proposition, an overweight population, a cultural movement, and very few realistic competitors! (I went to Tom Thumb tonight and needed a microscope to pick out the organic offerings)

Go for it.  Eat from Whole Foods for one week of your life and let me know how it goes!  Then decide if you want to own a piece of the company.

Where's the Freemium?

I had the good fortune to get to spend the 4th of July in Big Sur, CA.  Wow!  It was incredibly beautiful.  Along Hwy 1 we made a pit stop at the highly recommended "Big Sur Bakery".  It was a quaint little place in an old ranch style house in the heart of Big Sur known for it's baked goods.  We couldn't wait to try something!  However, they were "closed for a private party".  When I inquired further, I was told that they were having a book signing party for their brand new cookbook entitled "The Big Sur Bakery Cookbook, A Year in the Life of A Restaurant".  The only ticket to entry was... to PURCHASE THE COOKBOOK!  Otherwise, NO ENTRY, PRIVATE PARTY.  If you purchased the cookbook, you could then enter and taste a number of the recipes described in the cookbook, and get your copy signed. 

First of all, I understand that the thinking here is probably to avoid freeloaders who stop in to partake of the signature food and drink...or was the thinking that this barrier to entry could sell more cookbooks????  Regardless, we certainly would have been 90% more likely to purchase the cookbook if we'd had the opportunity to come in, mingle around, meet people, and participate in the tasting.  Even if we didn't enjoy the experience we may have bought the cookbook out of obligation! 

There are two components of this Freemium concept that have come to mind from this experience (the Anderson/Gladwell debate): 
1)the idea that there is a sense of obligation created when someone gives something of value to you without having any expectation of you
2)the idea that it's all about the "perceived value" of the experience

Value is the key word here.  We don't always find value in "Free", but if we do, we may be willing to pay out of obligation, or out of receiving value from the experience.

Either way, if the Big Sur Bakery had let us in to participate, we most likely would have purchased the cookbook out of obligation.   Secondly, if they would have employed a "Freemium" strategy by offering up this small experience or glimpse of who they are and what they stand for for free, we would have found more value in the cookbook!  We would have really wanted to own that cookbook to remind us that we had experienced this little place on the side of the road in Big Sur, CA on the 4th of July in 2009!  Unfortunately, we didn't get the opportunity to even enter the Big Sur Bakery...and we would have been sharing about this potentially wonderful place with all of our friends and contacts on twitter and facebook! (missed opportunity)

When you contemplate your pricing model for your business, remember these things:

-Why is it that we go to a great baseball game and pay $6 for a beer and another $6 for a hot dog when you could get the same at home for less than half?  It's the experience. How do you sit at a baseball game and go without a hot dog and a beer. Value is a function of the quality of the experience. 

-What is your barrier to entry?  What does it cost for someone to get to experience your value prop?  Even if it's just a taste, you can create an appetite for your services.

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• The Big Sur Bakery Cookbook by Michelle and Philip Wojtowicz and Michael Gilson, with Catherine Price Book Review 2009 (thekitchn.com)