Protect Your Information

Data security is very important in the construction industry. Whether it's details about new product research, prospect mailing lists, or building plans, a leaked document can expose manufacturers to liability issues and give competitors an advantage. How do companies make the decision about what information to post online, whether on the company webpage or a social network? My simple guide to online security is this: if you put it online it's not secure. Put differently, don't post anything online unless you're comfortable seeing it on the evening news tomorrow.

A slightly overprotective maxim along the lines of Murphy's Law, to be sure, but every year we hear about banks, government agencies, and online networks having major data leaks, exposing millions of users' confidential information.

This morning's story is that Facebook changed its global privacy policy to comply with Canadian standards.

"Last month the social network was found to breach Canadian law by holding on to users' personal data indefinitely...Facebook has now agreed to make changes to the way it handles this information and be more transparent about what data it collects and why...Elliot Schrage, vice president of global communications and public policy at Facebook, said he believed the new policies set "a new standard for the industry"."

Changes will occur over the next 12 months, but meanwhile almost one third of Canada's population is not getting the level of security they thought the government ensured. As more and more businesses start posting company profiles on Facebook, LinkedIn, and Twitter, it is important to be aware of these issues.

This is not to say companies should avoid social networks; on the contrary, they can be a powerful tool for reaching and building relationships with your clients. We've always taught that relationship selling is the key to reaching specifiers, and social networks take the concept to the next level. The key is responsible management of the company's online presence.

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Audiocast: BIM for Product Manufacturers

CSI's audio podcasts are a great way to get introduced to new ideas in the construction industry. You can hear construction war stories in "How Not To Screw Up;" get news in "Construction Minute," or get a green perspective from "This Week in Green." The archives are filled with interesting stories and useful information, in bite-sized pieces.

The "bimWITS" series is produced in cooperation with the BuildingSMART Alliance and discusses best practices with building information models. This particular episode is about one year old, but it's a nine-minute introduction to BIM from the perspective of the product manufacturer. In this episode, BIM expert Robert Weygant is interviewed by CSI's Aaron Titus.


Listen for answers to these questions:
  • What information should be in a BIM object?
  • What motivates a manufacturer to offer BIM objects?
  • What can designers do with BIM data?

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Editorial Calendar - The Construction Specifier

In the fall of each year, most construction industry magazines publish editorial calendars for the coming year. Building product marketeers can use editorial calendars to create publicity opportunities. Review the calendars of magazines your prospects read, then contact the editor to provide news or suggest timely stories that fit the calendar.

For example, The Construction Specifier has just issued the following calendar for 2010:

JANUARY
Openings
Acoustics
Concrete
Existing Conditions

FEBRUARY
Thermal and Moisture Protection
Metals
Finishes
Transportation

MARCH
Openings
Masonry
Wood
Earthwork

APRIL
Thermal and Moisture Protection
Concrete
Safety and Security
Plumbing and Bathrooms

MAY
Openings
Finishes
Plastics/Composites
Exterior Improvements

JUNE
Thermal and Moisture Protection
Masonry
Bathrooms
HVAC

JULY
Openings
Finishes
Concrete
Electrical

AUGUST
Thermal and Moisture Protection
Site Construction
Safety and Security
Utilities

SEPTEMBER
Masonry
Acoustics
Openings
Conveying Systems

OCTOBER
Finishes
Thermal and Moisture Protection
Concrete
Furnishings

NOVEMBER
HVAC
Masonry
Wood
Exterior Improvements

DECEMBER
Thermal and Moisture Protection
Openings
Finishes
Communications

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Architectural Billings Index

The Architecture Billings Index (ABI) is derived from the monthly Work-on-the-Boards survey conducted by the American Institute of Architects (AIA) Economics Market Research Group. ABI is a leading economic indicator that leads nonresidential construction activity by approximately 9-12 months. Participants in the monthly Work-on-the-Boards survey panel are asked whether their billings increased, decreased, or stayed the same as the preceding month. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.


Building product manufacturers use it for many purposes, including:

  • Forecasting future orders.
  • Understanding regional trends.
  • Evaluating sales territory performance.
I recently used it to understand fluctuations in visits to a client's website; traffic was down because architectural activity was down.

The AIA White Paper, “Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending,” describes the history and development of the ABI. For more information and to subscribe, contact James Chu, Director of Research, (202) 626-8045 or jchu@aia.org, or visit www.aia.org/practicing/economics/AIAS076265.

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Value of Webinars

Last month we mentioned our client’s plans for a CSI webinar. Now that the presentation has happened and the evaluations are in, I want to share our experience to serve as a guide for companies considering their first webinar.

Why a Webinar?

To start with, why do a webinar? There are several reasons:
  • Increased Reach: Most marketing efforts are geographically limited in reach, and increasing the geography considerably increases the time and cost of spreading the message. Traditional presentations, as face-to-face events, are of necessity the most limited. Putting the presentation online takes advantage of one of the greatest strengths of the internet. Remember, however, the impact of time zones; a presentation that starts in New York at 2pm needs to end by 3:30 or the participants in LA miss lunch.
  • Convenience: Related to the previous issue, attending an educational seminar while sitting at my desk in the middle of the work day is far easier than taking time off work, sacrificing my weekend, or spending hours traveling to get there. Making it easier to attend translates to improved attendance.
  • Reusable: Anything put on the web remains, in one form or another, forever. CSI saves popular courses for future on-demand viewing by advertising them in their course library. Presentations can be recorded for future use, posting on webpages, internal training, etc.
  • Prestige: The implied endorsement by the organization hosting the webinar can be a huge bump in your company’s image. Plus, the increased online visibility helps with search engine optimization. Even if participants do not make a direct association between the presentation and your company, as may be the case with groups that have “non-proprietary” requirements, they learn to see you, the presenter, as an expert.

Lessons Learned

Working with an organization like CSI is great; they provided the technical expertise so we could focus on designing and promoting the course. The webinar got free advertisement on the CSI webpage and newsletters, but I recommend doing additional publicity to spread the word. Draw in prospective clients by inviting all your prospects to attend; post it to your Twitter page and in forums dedicated to your target audience; be sure your local trade association chapters know you are the presenter so they can turn out in support. Our webinar was just a few weeks after CONSTRUCT 2009 so we had a great opportunity to promote it at the show.

The most important lesson we learned is practice, practice, practice. Most speakers experience a huge shock when they realize they are speaking to an audience they cannot see or hear. Good speakers learn to draw from their audience, adjusting pace, tone, and detail level to keep people engaged and excited. The most common webinar interfaces, however, only allow participants to give feedback and ask questions in a text-based chat box. Anyone that doesn’t understand why this is a problem has obviously never started a fight with their girlfriend/boyfriend/spouse by attempting to use sarcasm in an email; all emotion gets flattened out, and you can’t tell if a challenging question is asked in anger, curiosity, or excitement. Worse, you only get feedback when people feel strongly enough to start typing, meaning there is no way to tell who is falling asleep at their monitor.

As a result, speakers tend to speed up, get too loud or soft, mumble, and get ahead of the on-screen slide (especially when dealing with slow internet connections) without realizing they have lost the audience. Radio personalities undergo extensive training and practice to overcome this feeling of talking into a vacuum; most people do not have this experience to draw from, so it is important to practice using the actual technology, if it is available. We did not have prior access to CSI’s program, so we practiced with our client over the phone. For extra realism, try putting the phone on mute and only respond in text. Skype works well for this.

I also recommend getting a good microphone. In the past I have used a telephone, and it sounded like it. It was understandable, but there was that slightly canned sound and occasional static. Again, practice with your mike so you know how close you need to be and can speak naturally instead of shouting into it.

Lastly, remember that the webinar is not, by itself, a sales tool. No one closes a deal because of a great webinar. What it does is pave the way for future sales efforts – because you are now the expert in the field, and have an educated consumer base – and it generates a list of prospects for future calls. Be sure participants know how to find your website, and you, for additional information. Sending out a copy of the slide show or other handout is another great opportunity for follow-up. As part of a larger marketing plan, a webinar is a great way to reach and educate your prospects.

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PR vs Advertising

How much of your budget should go to PR versus advertising? For most companies PR is more effective than advertising.

Advertising does very little to build a brand, develop the message, and gain trust for new or not well known brands and products; it does a much better job maintaining brand awareness, which is why big brands spend so much on ads. Notice, however, that even though Microsoft outspends Google by better than 60:1 they only have about 10% of the search engine market compared to Google's 50%. PR, including viral and word-of-mouth messages, does more to build the brand in part because a friend's good experience does more to convince us than an ad.

There's another difference between the two: trust. Advertising has lost consumer trust. This was recently demonstrated when San Francisco installed new solar-powered transit shelters:

Preston at Jetson Green calls it "an interesting collaboration of five different organizations: San Francisco Municipal Transportation Agency(SFMTA), Clear Channel Outdoor, Inc., Lundberg Design,3Form, and Konarka." They are lovely things with Konarka flexible photovoltaics integrated into the 3Form recycled plastic roofs.
So what's the problem? The shelters are paid for by Clear Channel advertising. Lloyd Alter, in blogging about the shelters, opposes them for this reason, citing their contribution to ad creep:
When you give away the land for a shelter here, a garbage bin there, pretty soon your City is covered in ad creep, ads everywhere, more like Blade Runner every day. Private companies don't "give" us roads and sidewalks; we pay for them. Why isn't decent shelter while waiting for public transit as much a public responsibility?
We don't know yet how the majority of San Francisco citizens will respond to the shelters, but those agreeing with Alter have an automatic, strong, and negative disposition towards any product or brand featured in one of these ads. Even for products they usually would like. Meanwhile 3Form, and Konarka are gaining free publicity and look like heroes for their commitment to sustainability and contribution to the city.

Negative responses to paid advertising versus positive responses to free publicity; which of those works better for your company?

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Social Media and Branding

How Firms Use Social Networking
Key findings from a survey of Society for Marketing Professional Services members (from design and contracting firms) found that:

  • Individuals who use social networking face confusion both about how to use the tools and how to measure success.
  • Respondents confused electronic social networking with going to conferences or other offline networking events.
  • Media such as LinkedIn, Facebook, and Twitter were being used primarily for marketing individual professionals (62%), firms (50%), and employee recruitment (20%).
Significantly, the sponsors found that, “Our study is already out of date,” due to the rate of growth of social media.

The following example, cited by ENR, indicates that some in the construction industry have already made a significant commitment to social media. HOK is on LinkedIn, Facebook, Twitter, YouTube, Flickr, Delicious and VisualCV, and has four corporate communications staffers managing its social media sites plus 30 staff worldwide blogging on hoklife.com. A spokesman for the firm says social media already has helped HOK win some business.

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Business Before Budget

Business owners need to focus attention on the business plan, rather than the budget alone, according to PSMJ Resources, Inc.

Here are some tips on streamlining your business plan and maintaining your bottom line:

1. The budget is the least important aspect of your business plan.
Focusing too intently on numbers makes it easy to forget the driving factors behind the numbers. Instead, create a plan of action for what you need to change the following year to acquire better results.

2. No sacred cows.
Get rid of non-performers. You can't afford to waste money on their salaries, and keeping them sends a negative message to your top performers.

3. Stop wasting valuable energy on declining markets.
Research markets before pursuing them. Different perceptions of markets and their business cycles can negatively impact your efforts if you aren't cautious.

4. Stop chasing non-quality clients.
Avoid wasting time chasing non-quality clients or clients you have little chance of winning and focus your time elsewhere.

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Virtual Reality - Marketing in "2nd Life"

Second Life is "an online, 3D virtual world imagined and created by its Residents." Many people who how have a presence in the community take it very seriously, engaging in relationships, constructing their fantasy environments and visiting those built by others, and even engaging in commerce. Some consumer product companies are already paying for advertising in this virtual world. This poses the question: Will virtual communities become a useful tool for building product marketing?


A recent posting on the CSI Blog points the way:

  • An architect is using 2nd Life to help clients visualize proposed projects.
  • Architecture schools are using virtual worlds to study urban planning and designs.
  • Steelcase, the office furniture systems company, has a showroom in cyberspace. (See illustration above).
My guess is that the 5/10 rule applies: Don't overestimate its significance in the next 5 years, nor underestimate its potential in the next 10 years. That said, Second Life or other virtual communities could be a creative place for market research, branding, and maybe even virtual product testing. You can also use whatever you create there as the basis for a special promotion, publicity event, recruiting, and to create an impression of being an innovative company.

Bottom Line: Find some 20-something year old employees who grew up on computers and give them a chance to create a presense for your company there. It will motivate them to learn more about your business and how customers behave, and give them an opportunity to play with new ideas -- they may just invent the future of your business there.

Those who want more info on business opportunities can download a study here.

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About Chusid Associates

Chusid Associates is North America's leading building product marketing and architectural technology consultant. If you have questions or would like to schedule your free introductory consultation, please contact us for more information.

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