Adjacent silos, or 360 degree view of a customer?

June 30, 2010

Marketing silos harm customer experience and marketing optimizationSilos… good for grain, bad for customer experience, bad for marketing optimization.

Technology spurs innovation and options but over the last decade and a half has also created silos – technologically, organizationally and experientially. In a non-trivial manner, the creation of new technologies has actually flipped core marketing principles on their head – While we should start with an audience and then wrap an offering with its’ promotion, pricing and delivery, today, we start with a media channel and determine how to acquire, retain and cross/up sell within it.

I’m not trying to cure world peace here, just trying to point out some easy ways to start leveraging what you know in one case to use in another.

Stephen Powers of Forrester had an interesting example in a recent blog entry, “planes, pains and multichannel engagement“… During a recent flight he struggled to meet the expectations of a flight attendant who asked him what he wanted for lunch. Struggling to look at the in flight magazine to see what was available, it dawned on him that the airline could have included the selection on the boarding ticket. For that matter, they could have also included the in flight movie and the current weather at each passengers’ final destination. Wouldn’t that be helpful?

Myself, I have struggled for years with my bank. Note, the only bank I’ve had for more than twenty years. Every time I use one of their ATM’s, the first thing the system does is ask me what language I want to use. Seriously? I’ve answered that question hundreds, maybe thousands of times.

This subject reminds me of the movie, “50 first dates”… an Adam Sandler movie where his love interest, Drew Barrymore, has a memory disorder and wakes up each morning without recognition of anything that’s happened since a car accident years earlier. Adam Sandler is then found spending a lifetime of effort convincing her that they love each other, starting each morning and working diligently throughout each day.

When we think about marketing in terms of silos we create this daily “win-back” mentality, similar to Adam Sandler. I guess I’m arguing that an investment in resources and focus to start collapsing some of our silos might actually make our life easier, our relationships more fulfilling and our ability to optimize the relationship capable under and new, mutually beneficial reality.

These are the type of simple cross silo thinking is where marketers can start to distill the situation and prioritize bit sized chunks of opportunity rather than trying to swallow the entire Atlantic Ocean… or in the case of 50 First Dates, the South Pacific. Design a relevant customer experience.

Love to hear your thoughts!

Mark

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Forrester Customer Experience Forum – Tim Suther presentation on customer engagement

June 29, 2010

A hard punching setup:

  • 80% of CEOs think they provide a superior customer experience . . . but just 8% of their customers agree.
  • 80% of online advertising fails to reach its intended target.
  • Only 32% of brands know how their customers behave across channels . . . yet multichannel buyers are 4 to 5 times more profitable.
  • Most brands over invest in low-value customers and under invest in high-value customers.

Innovation – I heard an interesting quote today…

June 29, 2010

Henry Ford – “If I asked people what they needed they would have told me faster horses”

OK, call me slow. Everyone else has probably taken note of this quote before. Today, it hit me while I was pondering the gravity of change in and to the marketing and advertising community.

Are we solving the right problems? I question whether we are. In the advertising community I hear a lot about innovation around the dis-intermediation of the big players, like DSP capabilities. Why don’t we hear more about the efficacy and efficiency / relevance of advertising?

When you put the objective in the center of your strategy you begin to ask the right questions. Is your target customer in the center of your strategy?

Look forward to hearing your thoughts!

Mark


Life, liberty and our belief in advertising

June 26, 2010

Headline – advertisements regarding restaurants, soft drinks, apparel or electronics are about 5 times more believable to consumers than political advertisements. Hmmm, watch out for the November mid-term elections!

There certainly appears to be a breach in consumer trust. Honestly, shouldn’t our political leaders be held to a higher standard than a can of soda? Really. Not that the can of soda is reputable, but we deserve the right to believe in our government. While shelf space is important to Coca Cola and Pepsi, life, liberty and the pursuit of happiness “should” rank higher on the scale of believability in the minds of US consumers.

Love to hear your thoughts!

Mark


C to B Marketing

June 24, 2010

Consumer to Business - the new marketing communications modelPondering the thought this morning, I thought it a clever way to describe concepts marketers are struggling with today: consumer empowerment / consumers are in control, the need to listen to the voice of the customer, positioning in a world where consumers do much of the work for you, etc. It delivers the sense that the marketer is not the pinnacle of power they might think themselves to be. Or, maybe once were.

Yeah, yeah, the market has changed. Those changes have impacted the activity of marketers, at least successful ones, and have forever changed the relationship of businesses and their customers. Some call it social media marketing, I think it’s more aptly described as the new reality for brands and their marketers.

Is this the new marketing communications paradigm? The visual of “B2C” being flipped to a mirror vision, as the image to the left, creates a great visual for me… a guiding principle or light to the next generation of marketing.

Love to hear your thoughts!

Mark


Reaching consumers has become more difficult…

June 1, 2010

The challenge has increased exponentially.  There are more channels, more screens and more data than ever and the rate of change is increasing. Adoption driven by accessibility and affordability, technology enables consumers to access a vast wealth of information, on their terms. Starting in the last few decades, the trajectory of change has ramped up fast and is not projected to slow down.

Selecting one of the top spend channels, TV, we can see dramatic intra-channel shifts: From a peak year in mass TV advertising, 1965, until 2002, the number of 60 second spots necessary to reach 80% of one’s target audience has increased from three to 117[i]. Translating this to trust and recent research surrounding brand message acceptance, 60% of respondents said they need to hear information about a company three to five times before they believe it[ii]. Correlating these two points, an advertiser would need to provide at least 351 60 second TV spots to provide sufficient TV exposure to satisfy 80% of one’s target audience need for message acceptance. This, all while nearly 40 million US households have DVR capabilities and 59% of them “currently use a DVR to skip through the commercials”.[iii]

Fast-forward to the current decade. Today’s teen has become a moving target. Nearly all are double or triple tasking while watching TV.   U.S. teenagers trust information from each other 5X more than adults and 10X more than ads[iv]. If you think about what this world looks like 5 to 10 years from now, this scenario will be even more complex as this demographic will be your future target.  It will pay to get on top of this challenge sooner than later.

Complicating this, pushing more “noise” at consumers who have become increasingly insensitive to the charms of marketers has proven to risk exacerbating the issue and drives negative long term brand impressions.

The above is an excerpt from an upcoming whitepaper I wrote. I’ll update this post when the final production is available.

Mark


[i] Tim Stengel, former CMO at P&G

[ii] Edelman Trust Barometer, 2009

[iii] eMarketer – Mintel, “Attitudes toward Traditional Media Advertising and Promotional marketing – US”, 2009

[iv] eMarketer – Deloitte, “State of the Media Democracy Fourth Edition: Select US Highlights”, 2009


Media spend is not following media consumption

November 7, 2009

Today, digital media accounts for nearly 35% of the average US consumers’ media consumption yet less than 15% of ad spend is directed toward these new channels.

I think the issue is non-trivial. Not only are the digital channels more addressable, more trackable and accountable by their nature, they also represent the direction consumers are taking. Also of interest, looking at the largest spend and media consuming traditional channel, TV, younger audiences are consuming an appreciable and increasing portion of their media through the Internet… while double and triple tasking with games, IM, text, etc. Oh, and don’t forget that nearly 20% of households have DVRs and habitually timeshift their favorite shows.

The world is changing, consumers are multichannel… are you?

Love to hear your thoughts.

Mark


The fit of independent variables to the personalization scenario

October 1, 2009

Regression analysis can determine the “fit” of independent variables to a dependent variable.

Not all independent variables are a good fit.

Relying upon a small set of independent variables may produce an incorrect fit -> destroy your chances of doing anything that’s successful in your personalization program.

Thought for the day:-)

Mark


Website personalization vs customization

September 26, 2009

Customization is derived through explicit, stated preferences, while personalization is driven by both the explicit and implied – behavioral, demographic and brand specific information. How did the user get to the site (referral information like URL or search keywords), prior purchases, and onsite activity are key to driving relevance on a website.

Consider this, your brands’ website probably constitutes less than 0.5% of a visitors life experience, if you’re wildly successful… there’s a world of insight necessary and available to the purview of  your personalization scenario. A world that requires integration with a more comprehensive data set: your marketing database, third party data and analytic models to decipher it.


Data is the new “Black”

August 8, 2009

I had the distinct priveledge of participating in the hosting of a truly engaging event in New York this week. The objective was to provide professional value to attendees through the delivery of provocative presentations by recognized thought leaders in the marketing space, quality networking and let’s not forget the cocktails!

Dave Frankland from Forrester Research and Tim Suther were the featured speakers. The topic – the value of customer insight in the search for improvements to the performance of marketing investment.

Dave started out the evening by featuring compelling research on the struggle of the relationship between marketers and consumers:

  • In a competitive world many marketers have decided to turn up the “volume” of marketing messages because they sense a reduction in performance – causing a sever problem, driving approximately 50% of consumers to “strongly agree” that they get too many messages.

consumers are overwhelmed

  • Why is it that consumers feel so strongly about the “volume”? It’s because they also believe that they’re recieving irrelevant garbage – 50% to 75% of consumers believe the messages they receive are irrelevant. As a result, a vast majority of consumers have signed up to the do not call registry and have installed spam and popup blocking software. A large portion are even viewing TV timeshifted so they can fast forward through commercials – I do this myself, saves as much as 20 minutes in a 60 minute show and I can watch a NFL football game in about 45 minutes without missing a thing!

consumer marketing is largely irrelevant

Tim followed up by making the following points:

Acxiom High Performance Data is the New Black

diffvaluecustomer

databuildingblockinsight

  • Identify customer value
  • Invest proportionally
  • Find/recognize & engage accordingly
  • Measure acquired value
  • Institutional memory
  • Take the Easy Money
  • Learn more about the Acxiom Global Marketing Performance Series.

    To read what attendees had to say about the event, I’d encourage you to view some of these articles:

    logo_1to1media logo_dmnews


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