Tuesday, June 17, 2008

Karma Marketing

Saul Colt and Mike McDerment of FreshBooksI had the chance to hang out with Saul Colt and Mike McDerment of FreshBooks yesterday. They were in Ottawa to be remarkable with their current and prospective clients. It may not seem that traveling to eat a meal with people is particularly remarkable. It is. It’s just one of the many ways in which FreshBooks engages in something that Saul calls Karma Marketing.

While I learned a lot about their approach from Saul during a lunch gathering, it was the insights that Mike and Saul shared at Third Tuesday Ottawa that brought it all together. They talked about driving from Florida to Texas in a van, stopping in fourteen cities along the way to dine and engage with customers. During that trip they unwittingly connected some of their customers to work on their own projects and engage in new opportunities. They talked about following their customers’ online activities (not in a stalking kind of way) and making sure to acknowledge personal and corporate victories, and do token gestures for people having bad days (sending flowers) or pining for something Canadian (shipping mustard and Triscuits around the world). In many cases, they use the phone, noting that email is an incredibly ineffective way to communicate.

If Karma Marketing is the umbrella to the FreshBooks approach, then two powerful statements offered by Mike outline an approach to make that happen.

  • I take care of my team; my team team takes care of our customers; our customers take care of our business.

The FreshBooks approach of having all new hires start by answering the phones and handling customer calls is a brilliant way to ramp up new hires on customer engagement and relationships, as well become familiar with the service that FreshBooks sells. It doesn’t stop there. Each employee does their reserve period on the phones on a rotational basis — like milu’im in the Israeli army.

As the evening wrapped up and people started to disperse, Saul joined the group I was with and offered some advice he suggested will save us spending $20 a year on a new Seth Godin book. “Be remarkable”, he said.

As I walked home, I remembered the book, Creating the Service Culture, which I’ve blogged about before. The premise of the book (written in the 1980’s) is that services and products are becoming more homogeneous so companies must distinguish themselves by how they manage their customer relationships. That sounds like FreshBooks.

4 Responses to “Karma Marketing”

  1. Jeff Parks Says:

    Karma Marketing sounds a lot like Seth Godin’s TED Talk about being remarkable http://www.iaconsultants.ca/index.php/2008/02/22/be-remarkablebe-the-next-sliced-bread/

    I had the chance to interview Cordel Ratzlaff who created the UI for Mac OS 8-10 and is now leading Cisco Systems’ Web, Audio, and Video initiatives. In his talk “Creating the Next iPod” he states that in order to create a great product or service, you have to create a great corporate culture http://www.boxesandarrows.com/view/leading-designers-to

    I think both of these ideas, regardless of where they come from, are critical in the Information Age.

    No one works for one company for 35 years anymore so if you want to keep the talent within your organization, people have to feel valued and what they are doing is of value; otherwise why would they stay with so many options with respect to where, when, and what to work on!

    Great post Mark - sorry I missed the event.

  2. Saul Colt Says:

    Hey Mark!

    Thanks for writing this amazing post and thanks for coming to the event last night. Just so everyone understands, I don’t claim to have invented Karma Marketing….I just think I do it better than most cause I actually care :)

    Hope that clears things up!

    Saul

  3. Michael Cayley Says:

    Great post Mark!

  4. EyeSee » Freshbooks in Ottawa Says:

    [...] Saul gave his views on “Karma Marketing“. [...]

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