The Best-Run Businesses Run SAP

Ever watch those TV infomercials late at night when you’re bored and can’t sleep? Of course you do. And you’re likely to buy things you don’t really need as well.

The most fascinating book I’ve read in a long time, ‘But Wait… There’s More,’ explains the science behind infomercials. Virtually every element of an infomercial is based on scientific research and designed to manipulate you into taking action. For example, infomercials have a higher return on investment when they air late at night, not just because airtime is less expensive, but because

“viewers defenses started to topple as they grew sleepy. When the [surrounding] programming was lousy, many more people purchased products.”

Ron Popeil, often described as the father of the infomercial, popularized the countdown technique, in which he warned people he only had a certain number of units (“supplies are limited!”) and lowered the quantity displayed as the end of the pitch neared. Before time ran out, he stopped selling the last few items and switched to a new product. Frustrated buyers would be less likely to let future offers get away.

The more complicated the pricing scheme, the better. The “but wait, there’s more!” makes it harder to judge the value of the offer and the preponderance of add-on freebies creates the appearance of a good deal. Shipping and handling fees are almost always concealed until after the purchase decision has been made. Once you’ve made the emotional decision to purchase the ab roller to improve your health, you are unlikely to hang up just because you have to spend a few more dollars.

And, of course, words matter (my mantra!). The pitches always say “when you call,” not “if you call” which subtly encourages you to do it. The host typically asks the viewers to “tell a friend” about the incredible offer so they feel indebted for his act of generosity and reciprocate by making a purchase. And of course, the classic “if the lines are busy, please call back” creates a sense of panic in viewers that they may miss out on the deal that everyone else is getting.

The ‘But Wait… There’s More’ book also settled a multi-decade mystery for me. Why do commercials show knives cutting through such odd objects? Shoes, wood, and even a coin. I’ve never understood the psychology of that display. The answer is distressingly simple: if the knife can cut through a cement block, it clearly can stand up to whatever task you have for it in your own kitchen. This raises the perceived value in your mind, allowing the manufacturer to charge more.

Please tell a friend this post will be available for free for the next 7 days. But wait, there’s more: if you follow me on Twitter (@jbecher), I’ll throw in a subscription to this blog.

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This blog was originally posted on Manage By Walking Around on May 12, 2013.

Earlier today SAP announced that I had been named world-wide CMO, reporting to the co-CEOs Jim Snabe and Bill McDermott.  It’s been an incredible journey for me at SAP that started when I joined via the Pilot acquisition four years ago.  Since then, I’ve had a variety of roles include head of Business Objects marketing, Solution Marketing, and Field Marketing.

Given my background, I look at Marketing with a strong business lens.  What’s the quantifiable return on investment?   How do we set priorities that support the short-term needs of the company but allow us to invest in the future?  Which segments/channels/products can be improved the most by Marketing (as opposed to Sales) investments?

It’s an extraordinarily exciting time at SAP with new solutions and new channels delivering strong revenue growth.  Marketing has a key role to play in this growth and, among other things, we must:

•  Articulate the value of our solutions in simple and clear ways.
• Streamline the way people learn about our solutions, try them out, and acquire them.
• Support the entire lifecycle of a customer’s journey across multiple touch points and channels.
• Help people to understand how SAP impacts their lives, not just their businesses. 

It’s a daunting task but I’m heartened by the amazing people in SAP Marketing and their collective power to change the world.

You can learn more about my leadership style here.  If you’re interested in my writing, feel free to visit this blog or follow me on twitter (@jbecher).

It’s been estimated that only 15 of 143 of the top CMOs and CCOs in the Fortune 100 have active Twitter accounts.

Is it any wonder so many of them don’t understand social media?

Becher is one of the few top CMOs who are active in social media – and ask whether CMOs can truly understand the new world of marketing if they aren’t even involved in it themselves?

Along the way, we’ll hear about how SAP is using some of its own solutions to better understand the world of digital marketing.

Listen to Rick Mathieson’s audio interview with Jonathan Becher here

All too often, B2B marketers forget that business people are consumers, too.

Yes, you can keep on keeping on with conservative, boring marketing communications. Or you can truly engage business people the way they like to be dazzled in the rest of their lives.

Listen to Rick Mathieson’s audio interview with Jonathan Becher here

I had the chance to have an informal, behind-the-scenes chat with my colleague Hubertus Kuelps, Head of Global Communications and share some first impressions about SAPPHIRE NOW, its importance as an event not only for customers and prospects but for external influencers as well, and the importance of successful collaboration between Marketing and PR. (more…)