Insights and ideas to help your business grow


Issue No. 21, July 2015
Contact Us

Foundation Insurance Group

803 West Broad Street

Suite 500

Falls Church, VA 22046

703-988-3750 (phone)

800-203-2811 (toll free)

www.foundationinsurancegroup.com

info@figva.com

 





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How a Free Cup of Ice Water Created One of the 20th Century's Most Successful Marketing Campaigns 

It was the Dirty Thirties. Drought and topsoil erosion ruined over 150,000 square miles of Great Plains farmland, and gargantuan black dust storms roiled across the country from Colorado to New York City. Fleeing the Dust Bowl, tens of thousands of farming families from Texas, Oklahoma, and the surrounding states pulled up stakes and headed west.

Meanwhile, a pharmacist from Kansas by the name of Ted Hustead went looking to buy a drugstore and found one he liked in Wall, South Dakota. Unfortunately, Wall's 231 inhabitants didn't comprise a sufficient client base to support Hustead's drugstore. But the lovely Mrs. Hustead had an idea: appeal to tourists headed to the newly opened Mount Rushmore, and to Dust Bowl migrants, by offering them free cups of cold water.

Road signs went up from Minnesota to Montana, printed with the distance to Wall Drug and an advertisement for free ice water.

And the Mount Rushmore tourists came, and the Texan farmers came, and the gold prospectors headed for California came, and soon Hustead stopped worrying about who would buy his wares and started expanding the business.

It grew from a drugstore to a general store, then a department store, and finally became something of a cowboy-themed shopping mall, selling everything under the sun and featuring a western art museum, an animatronic cowboy orchestra, and an elephant-sized fiberglass jackalope.

Today Wall Drug sprawls over 75,000 square feet, takes in over $10 million annually, and during the summer months, they give away 20,000 cups of ice water daily. And it all began with Mrs. Hustead's road signs.

Those omnipresent Wall Drug signs generated so much curiosity and word-of-mouth that it became a major 20th century meme. 85 years later, both store- and fan-made Wall Drug signs can be found from Afghanistan to Antarctica (talk about selling ice to Eskimos...).

According to Hustead's 1999 New York Times obituary, "American G.I.s...took up the craze and spread the Wall Drug word to the far corners of the world. During World War II it seemed that every sign saying 'Kilroy was here,' was accompanied by one giving the mileage to Wall Drug."

Viral Marketing, 1930s Style

So what made the Wall Drug meme spread like wildfire?

To get to the science behind viral marketing, we wanted to see what the experts said. And one of those experts is Dr. Jonah Berger, Professor of Marketing at the Wharton School at the University of Pennsylvania. In his best-selling book, Contagious: Why Things Catch On, he explores the reasons we're compelled to share ideas and information, and attributes viral success to six key drivers:

Social Currency - People want to share things that support their sense of identity, that tell others they're in the know. Today we might be excited to tell friends we're wearing an Apple watch. During the '30s, you might have been part of the cognoscenti in the same way if you'd actually been to Wall Drug.

Triggers - Easily memorable cues cause us to think, and talk, and spread the word. What makes people want to tell others about the things they've seen and done? What makes something remarkable? Free ice water during the hot, dry days of the dust bowl? That was remarkable. It imprinted itself in the mind.

Emotion - Those curiously enticing signs promised not only relief from the arid, relentless heat, but the scarcity factor (there were way fewer rest stops than today's drivers are used to) created an impelling kind of gotta-have-it longing. And that magical marketing word, "FREE," must have evoked some powerful excitement.

Public - Ideas and behaviors spread when people imitate what they see others doing. Like the big glass jar half-full of bills, sitting on the counter at my local coffee place, which reminds people to tip the baristas. Hundreds and hundreds of signs marking off the mileage must have compelled plenty of drivers to follow the trail to Wall Drug.

Practical Value - We want to share useful info and look good for doing so. "Hey, Aunt Polly. When you're visiting Mount Rushmore, don't miss the ice water at Wall Drug. You'll be glad you made the detour!"

Stories - We love to share information, and what a great story people had to tell about miles and miles of empty highway and the string of signs promising ice cold water at the end of the road...

Dorothy Hustead created an amazingly potent anticipatory buzz 1930s style with nothing more than roadside signs. She didn't for a minute consider herself a marketing guru, but she knew what people would value, and she knew about the power of repetition, and scarcity, and stories that are fun to share.

Of course, back then there were no on-board videos, iPads, cell phones, or satellite radio channels to keep travelers occupied and stave off the boredom of the endless highway - only the alluring promise of those enticing Wall Drug signs.


But even today, with all our devices and gadgets, kids whining "Are we there yet?" can still be reassured as the countdown progresses, "Well, that sign says it's only 72 miles. Keep an eye out for the next one."
 
Body Language Demystified (or How to Increase Your Confidence in Two Minutes)

 

What you do speaks so loud that I cannot hear what you say.  

- Ralph Waldo Emerson


A dismissive shrug of the shoulders. An impatiently tapping finger. A child with crossed legs, squirming like a centipede. These more or less involuntary movements speak for themselves: I don't care; hurry up already; I have to use the bathroom right now.

If only all nonverbal cues lacked subtlety. Then you'd never be stuck trying to discern whether a prospect needs a little more handholding or more breathing room; whether a client has one foot out the door or is eager to deepen your working relationship. You'd win every Saturday night poker game.

But they don't, so we've put together a few pieces of advice to help you suss out the subconscious signals sent by your clients and potential clients, and gain a better awareness of the body language hints you're sending back to them.

Held at Arm's Length

Hands and arms make excellent shields. Tightly crossed arms convey defensiveness, gripping a drink with two hands creates a barrier between us and the person we're speaking with, and crossed arms with rigidly clamped hands shout "I am unsafe, unwilling, and uncomfortable."  

Nervousness inspires in us a desire to protect our most tender parts, and so we clutch a briefcase to our chest, hunch forward when sitting, or quite literally cup our hands over our genitals. (Unsurprisingly, the latter is a distinctly male trait.) If you need a clearer picture of what hostile, defensive posturing looks like, just ask the late stage, sadly belabored Richard Nixon.

True North of Intention

Think of legs and feet as the hands of a compass, swinging toward the true north of interest and authority. If you notice someone's knees and toes aimed in your direction, chances are you've gotten their attention. If you're standing in a circle with people who have one foot forward, chances are those feet are arrows pointed at the person perceived as the group leader. And if you're sitting face-to-face with someone whose toes are trained on the door rather than on you, chances are it's time to rethink your strategy before you lose their interest completely.

Power Poses

If your goal is to increase your confidence and others' confidence in you, take two minutes and try a power pose. Power poses are, unsurprisingly, stances that convey strength and ease-standing with legs spread, palms on a tabletop, arms straight; leaning back in a chair, hands behind head, feet up on the desk; or the classic Wonder Woman: legs spread, chin up, and arms akimbo.

Dr. Amy Cuddy of Harvard business school measured the effects of holding a power pose for two minutes and discovered that, for both men and women, testosterone levels rose 20% (think increased confidence and assertiveness) and cortisol levels dropped almost 25% (think decreased anxiety).  

Furthermore, she says, "Power posing also increases people's tolerance for risk and pain, and their ability to think abstractly. This isn't about what your body language is communicating to others; it's about what your body language is communicating to you: your body language is changing your mind, which changes your behavior, which changes your outcomes."              

As part of her study, Dr. Cuddy had subjects hold power poses for those two minutes, then subjected them to simulated job interviews. Impartial judges, observing these scenarios from outside the room, uniformly recommended hiring those interviewees who had power posed over those who hadn't. They cited, rather than anything the participants said or their work experience, each subject's impressive presence.

Perhaps the easiest way to sum this all up is to think of body language as a set of black and white opposites: vulnerable/invulnerable, nervous/relaxed, power/submission, like/dislike.  

Obviously there are many shades of grey; legs crossed at the knee vs. at the ankle, or in an American-style figure 4, or by men vs. women, may all indicate different things and cannot really be simplified as "legs crossed/uncrossed." Certainly one can say that openness connotes power, comfort, security; that being closed, hunched, and clenched conveys discomfort, vulnerability, and perhaps the desire to flee.

Hopefully, none of your clients want to take flight, but if they do you'll be forewarned. Or, even better, take notice of their disquiet and turn the situation around.

Your primary business may not be home based, but more and more home based businesses are popping up, from eBay sellers to copyeditors to graphic designers, so we're including this article from the Insurance Information Institute. Hope you find it useful.

- Eds.

 

 Insuring Your Home-Based Business

 

Whether you're running a part-time, seasonal or full-time business from your home, you'll want to carefully consider your risks and insurance needs. Starting a business-even at home-can be a challenging venture, and having the right insurance can provide a financial safety net and peace of mind.

 

Your insurance choices should, in part, be based on the type of business you operate. For instance, if you're a sole practitioner home-based accountant, you'll have very different insurance needs than your neighbor who runs a childcare business. When considering insurance for your business, here are some questions to ask yourself:

  • What type of business do I run? What are the potential risks faced by your type of business?
  • What is the value of my business property? Do you have expensive equipment, such as cameras or commercial printers? Do you stock valuable business inventory, such as gemstones?  
  • Does my business have employees?  
  • Do customers or contractors visit my business at my home?  
  • Do I use my car or other vehicles in the course of my business operations?  
  • Does my business store customers' financial and personal information on a computer or through a cloud computing service?  

The answers to these questions will guide which types of insurance to purchase-and how much coverage you'll need. For your home-based business, the main types of insurance to consider include the following:

 

Property and Liability Insurance

 

Depending on the nature of your home-based business, you'll need insurance to protect the value of your business property from loss due to theft, fire or other insured perils. You'll also need liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service.  

 

Your homeowners insurance may provide some protection for your business, but it may not be sufficient. Options for property and liability insurance for home-based businesses include:

  • Adding an "endorsement" to your homeowners policy  
  • Stand-alone home-based business insurance policies  
  • A Business Owners Policy-or BOP-which combines several types of coverage  

Business Vehicle Insurance

 

Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you'll need business vehicle insurance.

 

Workers Compensation Insurance

 

If you have employees, you'll want to strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Workers compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state's workers compensation website for local requirements.

 

Other types of insurance may be suitable for your home-based business as well. Your insurance professional can help you evaluate your needs and select insurance to meet your budget.

 

Reprinted with permission from the Insurance Information Institute, www.iii.org 

 

 

 

 

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All content © 2015 Professional Marketing Associates, Inc. This newsletter is not intended to provide specific legal or insurance advice. Please consult your individual agent for further information on the topics covered.