How Netflix Uses Your Data to Create Hit TV Shows

With free tools like Google Analytics everyone with a website is collecting “Big Data”. However, I’m amazed when companies use data to their advantage. The next few blog posts will be about how companies are leveraging data to dominate.

Netflix Website

Netflix is a company I’ve admired for years. Here are two ways they use data to their advantage:

#1 Create a HIT new TV Show

How Netflix created a HIT TV SHOW image

They knew their customers liked the actor Kevin Spacey, the director David Fincher, and a 1990 BBC mini series called “House of Cards. So, when Netflix wanted to launch a brand new show for their own audience they decided to do a remake of “House of Cards” staring Kevin Spacey and directed by David Fincher.

Salon has a great write up about this called “How Netflix is Turning Viewers Into Puppets”

#2 Make Streaming Speeds Faster

Battlestar Galactica Meetup Groups - Battlestar Galactica Meetups

Everyday Netflix analyzes and predicts which shows will be popular and in what location. For example if Netflix knows that the show Battlestar Galactica will be popular in Madison, WI they will load up that show on the high-speed flash storage drives near their servers in Madison, WI.

What companies do you know that are leveraging data? Please me know in the comments.

Simple Plan to Find a Business Partner

Steve Jobs and Woz

Here is a simple plan that can help you find a technical business partner.

3 Fundamental Principles You Must Know First

  1. Come to terms with the fact that no one wants to work for your idea
  2. Understand that everyone you talk to is in love with their own ideas
  3. Embrace the concept of helping others and don’t expect anything in return

Now, Follow this Plan

  1. Meet some technical people that are working on their own side projects. These types of people are everywhere. Your current job, online, at hackathons, conferences, etc.
  2. Tell them you want to help them get their first 20 customers
  3. Get their side project some customers! Feel free to use some of the marketing tactics you have learned on this blog
  4. Once you get their side project some customers they will have tremendous respect for you. You have just done something they have been struggling with… turning their side project into a real business with customers!

This is a simple plan to help you find ambitious people to work with.

How to Get Thousands of People to Show up at a Mall in Japan

Diver City Mall Robot in Tokyo

Need a million people to show up to your mall? That’s easy! Build a 60 Foot Robot that moves and talks. This got me and my wife to go check out the Diver City Mall in Tokyo, Japan.

To show you how big it is, above is a picture of me next to the Robot’s foot. Along with being massive, every few hours their is a show where he moves and talks. It was amazing and I was really glad I fell into this marketing tourist trap.

This reminds me of a small town called Soap Lake in Washington, USA. The town of Soap Lake was dying and they had to come up with something quick to attract people.

So, They decided to build the worlds largest Lava Lamp as a tourist attraction. It is 52,000 pounds in size!

What was your favorite tourist trap and how did you get suckered in? Let me know in the comments.

Restaurant Distribution via Highways… The Story of Cracker Barrel

Cracker Barrel Logo

If you have ever been on any highway in the United States you will recognize the Cracker Barrel logo (see above).

I recently came across their Wikipedia page and discovered that their entire strategy was to open restaurants near highway exits. This makes a ton of sense! Open restaurants along the highway. Imagine driving for miles and not seeing anywhere to eat until you come across a Cracker Barrel. This is similar to a water stand in the middle of the desert.

Cracker Barell along the highway

I did a little more digging and found out the founder Dan Evins use to work at a Shell Oil gas station! He borrowed $40,000 and opened his first Cracker Barrel in 1969 right by the Tennessee State Route 109. They now have 600 stores nation-wide and $2 Billion in revenue.

first-cracker-barrel-original-store

The first Cracker Barrel store

I remember thinking on long road trips “What is the Cracker Barrel, I see it everywhere!” My parents would never take me there even though I would beg for it, I know now because we are vegetarian and most dishes on their menu are meat based. Till this day I still have yet to make it into a Cracker Barrel – will someone please tell me what’s inside?

From the Comments by Tom Parnau

Trusted and Recognized Symbol Representing Security… it works!

Cracker Barrel Logo is a trusted and recognized symbol representing security for those in unfamiliar surroundings. This same strategy is recognized more obviously at McDonalds. Another example, to a lesser extent would be The Machine Shed. This icon targets Farmers and truckers from the Midwest,with reputed expertise in the home cooking arena,now refered to as comfort food. Make no mistake,this same strategy is quite effective today and employed with regularity by the Kwik Trip Corporations. Your own comfort level,sense of security and of knowing exactly what to expect when you enter, is why you will drive in to the Kwik trip in lieu of the other convenience stops. It works !

The Sale is Never Over

Keeping customers is more important than getting new customers.

After a customer pays you it is your duty to make sure your product works for them. A lot of times, I pay for a product, it just doesn’t work, and I give up. Also the amount is so low (under $30) that I don’t want to go through the hassle of getting a refund. There is absolutely no way I will sign up again for your product.

I’m a big believer in SaaS so recurring customers are built into my business model. However, almost all businesses rely on repeat business. For example coffee shops (Starbucks), lawyers, big box retailers (Best Buy), iPhone games (Tiny Wings), and almost any business that wants to stay in business needs repeat business.

Some companies do this really well. They follow up with you and ask about your experience. They ask simple questions like “Did you like our service?” or sometimes even more specific questions like “Did your file send successfully for your last campaign?”

Even generic survey/question asking for feedback is better than nothing.

Other companies (most) don’t even think of asking. They think that the sale is over as soon as the first sale is over. Time to move on and impress the next customer. NO!, the sale is never over. Ask for feedback, improve your products, keep that customer coming again, again. That is the key to building a successful customer focused billion dollar company.

SEO Growth Hack: Piggy-Back For Fast Rankings

This guest post is by Pete Kennedy – SEO and Adwords Coach at Main Street ROI. Pete has personally taught me everything I know about up-selling, SEO, conversion funnels and Sales Copy. I invited him to GMA to teach my readers about growing with SEO.

The Myth

You’ve probably been led to believe that it takes months to get a first-page Google ranking, but this simply isn’t true. In this post, I’m going to share a simple SEO tactic to get first-page rankings in as little as 1 week.

When most people think about SEO, they typically only think about getting their own website to rank in Google. But when you publish content on high-authority websites, you can get ranked in Google much faster.

What is a high-authority website?

A really big website that gets a lot of traffic. Like YouTube, Facebook, and Scribd.

Here’s why leveraging high-authority websites works:

It takes a lot of time and effort to build up your website’s reputation (attracting links, etc). But when you publish content on a high-authority website, you piggy-back on that site’s reputation.

Follow These 2 Simple Steps

Step 1. Identify your target keywords

You’ll have the best luck if you target 3-5 word “long-tail” keyword phrases, so you face less competition for the top spots in Google. Use Google’s keyword tool to identify these phrases. You can also use this “piggy-back” strategy to dominate the first page for your personal name or company name keywords.

Step 2. Publish content on high-authority sites

It’s really easy. All you have to do is include your keyword early in the title of your content, and you’ll often start ranking in Google in a matter of days. Here’s a list of high-authority websites where you can publish content:

Video websites

Press release websites

Social networking sites

Doc sites 

In addition, you can publish guest posts on high-authority blogs, get interviewed on internet radio shows (e.g. blogtalkradio.com), and the list goes on and on…

Example #1: Google Adwords Checklist

We wanted to get ranked for the long-tail keyword Google AdWords Checklist. So, we created a post on our blog, and we also created a YouTube video. As you can see below, the YouTube video ranks #1 in Google, and our blog post ranks #2:

The video started ranking on the first page of Google in a matter of days.

Example #2: Main Street ROI Brand Reputation

We’re also using this “piggy-back” technique to establish our brand reputation. When you Google our company name, Main Street ROI, our content fills up the entire first page of Google’s results.

I recommend you create branded pages on authority websites ASAP, so dominate the first page of results when prospects, customers, partners, and journalists are checking you out in Google.

I’m assuming you provide top-quality products and services and you have a solid reputation. But as you grow you’ll probably have some disgruntled (or outright crazy) customers. And you’ll probably get some complaints and bad reviews online at some point or another. It’s almost inevitable. And that’s why it’s never too early to start establishing and protecting your brand reputation.

This “piggyback” tactic is the sort of thing that reputation management companies charges hundreds and thousands of dollars for, but you can easily do it yourself for free.

Days not Months

The bottom line: Stop buying into the belief that you have to wait months to get ranked in Google. Go publish content on high-authority websites and you can crack the first page in a matter of days.

Pete Kennedy is co-founder of Main Street ROI. Want more free SEO tips?  Download Main Street ROI’s Ultimate SEO Checklist. You’ll get 86 expert tips to boost your Google rankings. Get it here: http://www.mainstreetroi.com/ultimate-seo-checklist/

Rishi’s note: if you want to learn more about SEO. I highly recommend Pete’s SEO checklist. There are a ton of people that claim to know SEO but have no clue. Pete is the real deal. I have worked with him closely and highly endorse his products.

6 Pivots to a Billion Dollars: How a Soda Shop Owner Did It

One of my ALL TIME favorite entrepreneurs is JW Marriott. I wanted to share how he evolved a simple soda shop into the hotel empire!

1927 – The Great Idea is Born!

JW visits Washington D.C. on a hot sunny day and thought he could get rich by serving cold drinks. So, he opened up a A&W Root Beer franchise to do just that!

1928 – The Invention of the “Drive Thru”

More Americans had cars and so he invented “Service In Your Car” or as we know it now as a “Drive Thru”. The core idea was serve customers faster and make it easier – why make people get out of their cars?

1934 – Family Restaurant & Expanding

JW Marriott converted his A&W Root Beer stand into a low budget family restaurant and did a complete rebrand, calling it “The Hot Shoppe”.

JW and his wife/business partner, Alice Marriott, focused on opening more restaurants across the east coast.

1937 – Invented in-flight food services

JW noticed customers were “Driving Thru” and getting on a flight. He thought why not make things easier on his customers and just provide the food directly on the flight itself.

1955 – Food Catering

Started providing food catering services to government buildings, public schools, and hospitals. If you can’t get the customer to come to you why not just go to them – serve them food right where they work!

1957 – Opens First Hotel

All those people traveling on planes have to sleep somewhere. So they conveniently opened their first 365-room hotel right next to the airport.

Fun Fact: Daily Rates were $8/night

1958 and Onwards

Hotel expansion domination.

… and the rest is history. By constantly looking at where the customer is and how to make their life easier Marriott was able to transform a small time soda shop into a multi billion dollar corporation.

If you want to learn more checkout this awesome 45 minute documentary on JW Marriott.

The reason I love this story so much is Marriott makes creating a multi billion dollar company really easy, all you need to do is listen to your customers!

Special thanks to Priya Sheth for editing this post.

How Google Chrome Became The #1 Browser

In only 4 short years Google Chrome has dominated the browser market. Last Month Google Chrome over took IE as the top browser. This is a big deal. FireFox has been around for 9 years and has never over taken IE.

How did this happen?

How come FireFox couldn’t grab more market share in the 9 years they have been out? 

Is it because Chrome is a better browser?… Nope
Is it because Google buys a ton of TV ads?… No
Is it because they have massive DISTRIBUTION?… YES!!! They simply leverage all their other properties to destroy their competition.

Google’s Chrome “Recommendation” on IE7

Here is what you see when you go to Google.com (you know the most popular website in the world) in IE7.

You see similar types of “recommendations” when you go to YouTube, Gmail, or any other Google property when you are browsing in IE7. I’m a huge fan of all the Google products and it makes sense to leverage all their properties to dominate.

I’ve been pretty obsessed with the idea of massive distribution. If you know any other examples of companies doing it well, please let me know in the comments.

Update (Aug 31 2012): Dan Weiland just had an incredibly insightful comment:

Their main revenue stream is advertising. Advertising through Google.com, Gmail, GReader and many of their other web based products. They key here is the word “web based”.

Before Google Chrome, Google’s web based product performance was limited by the browsers people were using. Google.com could only go so fast (and by extension, serve so many ads) as IE would allow it. Undoubtedly one of the reasons they made Chrome was to force the other browser makers to innovate on speed. see the full comment here

Marissa Mayer and The Greatest Turnaround in History

I recently read the first memo Marissa Mayer gave to the Yahoo employees as CEO. It contained a key sentence that made me really believe in her and the future of Yahoo:

“We will continue to invest in talent, so we can produce the most compelling and exciting user experiences anywhere.”

1 Simple Goal

Most new CEOs have a boiler plate reply about growing revenues or investing in big markets. Not Marissa – she specifically mentioned investing in people. By focusing on 1 simple goal that everyone (investors and employees) can agree with makes an amazing company a lot easier to build.

Focusing on Safety turned around Aluminum Co.

To make my point I want to tell you about a story that I recently read in “The Power of Habit“. In 1987 Paul O’Neill took over a Aluminum Co. a floundering aluminum production company. He told the massive company that all he is going to do is focus on safety. Focusing on safety was something no one could argue about – the management or the factory workers. By focusing on something as simple as safety, Paul was able to increase productivity (less on-the-job injuries), improve communication (as soon as their was an error management knew about it), and in turn this increased the quality of the product! In 5 short years Aluminum Co. was one of the safest companies to work for and was a profit making machine.

Marissa’s focus on talent

By focusing on talent everything in the company will automatically improve.

Yahoo will be able to attract top talent and existing employees will become even more talented, more talented people will create better products, better products will bring in more revenue!

Good luck Marissa – you are already off to a great start!

The Future of Book Stores: Hudson News

If you’ve been to an airport you have seen a Hudson News store. They are located in hundreds of airport terminals.

Fancy Unique Business? NOPE!

Hudson News only sells popular products that you have already heard of.

1. Best Selling Books
2. Popular Mainstream Candy
3. Tacky Touristy Crap that you forgot to buy for your kids (they will love it!)

What is the Key to their Success?

Partnerships with airports is how Hudson News dominate.

Millions of travelers walk past a Hudson News while catching their flight. Airports need a store they can rely on to provide travelers with refreshments (and pay the rent), and Hudson News is willing to comply with all the airports regulations (and pay the rent).

Would the Hudson News business work if they were located in your local shopping mall? Nope – grocery stores and 7-11 are cheaper and way better.

Rishi, What is Your Point? 

If you have multiple competitors think of valuable partnerships you can make. Sometimes it’s your partnerships that make you dominate – not your product.

The Future of Books Stores

Hudson News is the future of Book Stores. I have no idea how a stand alone Barnes and Nobles can survive. They are just way to big and expensive to run, also they don’t have enough traffic coming in anymore. Each Hudson News store on the other hand is run by only 1 person and has millions of people going through their stores daily.

Hudson News also only carries books they know will sell which results in more turn over.

>> Do you think Hudson News is the future of Book Stores? Let me know in the comments below.

PS One could argue that their key to success is surrounding the cashier in a mound of candy.