Twelve Lessons from the Purple Goldfish Project

by Guest Contributor Stan Phelps    

Over two years ago I set out on a quest.  It was my belief that “differentiation via added value” was a game changing marketing strategy.  I wanted to find 1,001 examples of marketing lagniappe (i.e. Southwest’s Bags Fly Free, DoubleTree Chocolate Chip Cookie, Five Guys Peanuts, etc.) – companies that gave little unexpected extras to stand out from the crowd, improve customer experience, and drive positive word of mouth.

I really don’t know what I was thinking when I decided on 1,001 examples.  I should have taken a cue from a friend of mine who gave me some sage advice about skiing. He said that if I was going to learn cross-country skiing…that I probably should start with a small country.

It took 27- months, but I finally reached the mountaintop.  MENG was a huge help along the climb.  My fellow MENGers not only pitched in with dozens of examples but also many helped refine my approach and thinking around the concept.  I wanted to especially thank Lisa Petrilli, Jim Fisher, Ruth Bardos, Beverly Katz, Drew McLellan, Paul Dunay, Barry Moltz, Stephen Denny, Joe Pulizzi, Greg Monaco, Sarah Miller Caldicott, Ted Simon, Steve Walton and George Bradt.  One of the highlights was giving a MENG webinar and speaking to the CT chapter back in June 2010.

In honor of the New Year and giving back, I wanted to share a baker’s dozen of the biggest takeaways from my newbook, What’s Your Purple Goldfish?

#1.  What’s the Biggest Myth in Marketing?

The biggest myth in marketing is the idea of meeting expectations.  There is no such thing as meeting expectations.  You either exceed them or you fall short.  In a world where 60-80% of customers describe themselves as satisfied or very satisfied before going on to defect to other brands, merely ”meeting expectations” is no longer an option.

#2.  Two Paths Diverge in the Corporate Woods

You can’t be all things to all people.  You only have two choices as a marketer:  Create to spec and face being a commodity or set out to exceed expectations and become remark-able.  Choose wisely…

#3.  Shareholders vs. Customers?

Business is about creating and keeping customers.  Customer experience should be Priority #1 in your marketing.  Stop focusing on the ”two in the bush” (prospects) and take care of the one in your hand (customers).

#4.  Value is the New Black

Don’t compete on price.  Cater to the 70% that buy based on value.  Price is only relative to the value received.

#5.  Phelps Corollary to the Pareto Principle

Traditional marketing is flawed.  Eighty percent of your efforts will net 20% of your results. Focus on existing customers instead of the funnel by finding little extras that are tangible, valuable, and talkable.

#6.  Growth is Determined by Five Factors

The growth of your product or service is similar to that of a goldfish.  Growth is determined by 5 factors:

     1. Size of the bowl = Market

     2. Number of other goldfish in the bowl = Competition

     3. Quality of the water in the bowl = Business Environment / Economy

     4. First 120 Days of Life = Start-up

     5. Genetic make-up = Differentiation

Assuming you’ve already been in business for four months, the only thing you can control is how you differentiate yourself, how you stand out in a “sea of sameness.”

#7.  Blue Ocean Strategy vs. Purple Goldfish Pond Strategy

Purple Goldfish Pond Strategy is “differentiation via added value.”  Finding signature extras that help you stand out, improve customer experience, reduce attrition and drive positive word of mouth.

#8. Acts of Kindness

Think of lagniappe as an added branded act of kindness. A beacon or sign that shows you care.  Marketing via G.L.U.E (giving little unexpected extras) – a little something thrown in for good measure.

#9.  Lagniappe Economy

There is a middle ground between a Market Economy (quid pro quo) and a Gift Economy (free).  A lagniappe economy is where there is an exchange of good and services for an exact value (market economy) plus a little unexpected extra that is given for good measure (gift economy).

#10.  v4 Principle

”v4” is when a consumer becomes a ”PROsumer.”  They stand up for a product or service and vouch for it, giving personal assurances to its value. As a marketer you need to figure out a way to make your product or service remark-able.  Are you giving your customers something to talk, tweet, blog, and post to Facebook about?

#11. Five Ingredients

There are 5 ingredients or R.U.L.E.S when creating a purple goldfish:

Relevant – the extra should be of value to the recipient

Unexpected – it should “surprise and delight”

Limited – the extra should be something rare, hard to find or signature to your business

Expression – it should be a sign that you care

Sticky – it should be memorable and talkable

#12. There are no traffic jams on the extra mile

The VM matrix calculates how a brand measures up on two important criteria:  value and maintenance.  The goal is to be seen as ”high value” and ”low maintenance” by your customers.

There are 12 types of Purple Goldfish based on value and maintenance:

#1.  Throw-ins (value)   

#2.  In the Bag / Out of the Box (value)

#3.  Sampling (value)  

#4.  First & Last Impressions (value)

#5.  Guarantees (value)

#6.  Pay it Forward (value)

#7.  Follow-up / Thank You’s (maintenance)

#8.  Added Service (maintenance)

#9.  Convenience (maintenance)

#10.  Waiting (maintenance)

#11.  Special Needs (maintenance)

#12.  Handling Mistakes (maintenance)

Here is a link to my most viewed post on Customer Think featuring examples from each category.

Baker’s Dozen Takeaway:  Creating Sales Lift

This is probably the most exciting takeaway.  Giving a purple goldfish can increase your sales by 46%.  A recent article in the International Journal of Marketing Studies has revealed that giving a gift before purchase could increase consumer spending by over 40%.

Final thoughts and an offer There is a tremendous cartoon by Hugh MacLoed about writing a book.  It was inspired by some advice Seth Godin shared.  “You don’t write books for the money…you write books to stake a claim on whatever ground you want to own.”  I started this Project and wrote this book because I fundamentally believe that marketing needs to change.  I couldn’t have done it without the help of MENG.  I want to offer my own bit of lagniappe to say “thanks” to the membership:  

#1.  FREE Kindle copy inspired by a Jeff Bezos’s Purple Goldfish.  If you are an Amazon Prime customer, you can downloadthe Kindle version for free here courtesy of the Owners’ Lending Library.  It will be free from 1/11 to 1/15.

#2.  FREE PDF of the book inspired by  Chris Anderson, the author of FREE.  You can access and dowload a full advance reading copy here on Scribd.

#3.  FREE Book via BOGO.  This is inspired by one of my favorite Purple Goldfish…the IZZY.  Buy the book today  (January 11, 2011) on Amazon and forward me a copy of the receipt (a screenshot will do) to sphelps@synergyevents.com, and I’ll send (US only) a signed free copy of the book to you or whoever you’d like to give one to as a gift.

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