DMDays ’09 – new digital marketing committee announced – iDirect

June 24, 2009

The Direct Marketing AssociationDuring the opening keynote at DMDays John Greco, president of The DMA, announced a new committee designed to help mentor his organization into a transformative era, bridging their legacy as a primary thought leader in direct mail into the new digital and multichannel world – iDirect.

Fundamentally, this is an incredibly interesting issue and worthy of commentary. What role does the industry establishment play in the current and future evolution of marketing?

The first dimension that comes to mind for me is the communication between online and offline constituents within a company. In this case The DMA has a superior chain of relationships with large brands, and their ability to influence direction is substantial. Time will tell how this will shake out.

My greatest impression is that the marketing world is neither digital nor direct… it’s both. The beauty of digital media channels is that they typically possess a deep level of addressability… a quicker, more accurate form of the same measurement that underlies traditional direct marketing principles.

Noted by industry icon, Stan Rapp, “iDirect Marketing is the new Direct Marketing empowered by interactive insights and multi-channel involvement brought to life with new digital technologies.  It is a fresh approach to marketing directly, driven by a remarkable degree of innovation and information shared via the infinite internet and other digital media.  It’s what’s missing today when you simply say “Direct Marketing” or “Interactive Marketing.”

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Forrest Gump was a mass marketer

June 11, 2009

forrest-gump-chocolates“My momma always said, ‘Life was like a box of chocolates. You never know what you’re gonnaget'”. Yeah, right… in a mass marketing spray and pray world, sure!  But  Lieutenant Dan…

It’s a marketers job to figure out which chocolates taste best and then figure out how to find more of just those. Most people would think this is a great place to stop. I think we should also go and figure out how to find bigger chocolates! Forget the box Forrest, pull up a truck!

mandm-persoWouldn’t be a great world if we could each go to a Godiva store and order a box with your name on it, with just your selection of chocolates… “I’d like a box of Mark Ogne, please”. You may not know this, but did you know you can order personalized M &M’s? What a cool idea… check it out!


Consumer-centricity starts at home

June 11, 2009

To effectively position a business as centered around a target audience the whole organization needs to deliver a resounding brand message that is consistent with the strategy intent. Leadership style and a connection to the organization are equally important as messaging and marketing strategies when it comes time to deploy customer centric marketing strategies.

Pulling from notes and other articles, I’ve found several points that describe the customer-centric leader and things that marketers need to consider as they develop marketing strategy:

  • They see their team is the face of the company. Beyond ads or collateral or a website, your employees are delivering a clear message to your customers and prospects… is that message in line with your customer-centric aspirations?
  • They see trust as the lever to bring their teams in line with their customers. When you deliver a message to your customers, do they hear what you tried to say or do they parse words and wonder what you “really” tried to say. Consistency and sincerity deliver the environment for team members to foster a trust relationship with clients, and visa-versa. Trust is hard to get a first time and nearly impossible to get a second time.
  • They use customer insight as the guiding light for the organization. Largely it’s a communication issue; beyond gathering information, they seek to spread that information into broad areas of the company. Ironically, in most companies, the team members closest to the customer are the most likely to know what is working yet least likely to have a communication channel to upper management and product teams. Conversely, many top management teams sponsors consultant research projects to learn about their customers and then they don’t share the learning deeply into the organization.
  • They get their hands dirty. They go to clients, they engage with teams at different levels and internal organizations. More than a decade ago I worked at a global technology distributor and asked that I spend a few days working in a warehouse… it was probably the single best learning experience I had. I “knew” what it took to make the business operate, how difficult the operations part of that business was, and all of that helped me greatly understand how to communicate shipping issues to clients in the ensuing years.

Have you factored internal organizational dynamics into your customer-centric marketing strategy?


“Clobberation” – words the English language should have

March 15, 2009
[klobuhrey-shuhn]

 

–noun
1.the act or process of physically harming team members during a web project.
2. found in nature – response between sales and marketing teams during an annual planning process.
2.a painful product resulting from collaboration: A dictionary is a collaboration of many minds, a web project is a clobberation of many web developers.

 

 

 


Behavior, algorithms, consumer relevance and the advertiser

February 19, 2009

Can a single algorithm deliver relevance… across seasons, different web properties, between global cultures and among differing offering categories? Personally, I have troubles trying to predict behavior in the people I’ve known for many years. The human heart and mind act in sometimes strangely unpredictable ways. Isn’t that the part of humanity that’s really great? I think so!

Algorithms to deliver relevance need to accurately reflect consumer information – behavior, demo / psycho-graphics, and other.  The difficulty with this model is that only the smallest of slivers of a consumers life revolves around any single brand – though we would all like to believe differently:-)  Also, until you get reams of data surrounding an individual, how do you actually recommend. In the on line world this is particularly debilitating because over half of website traffic bounces from good sites right away and only a small sliver (used the word twice) of traffic actually makes it to a conversion… and an even smaller sliver (gotta stop using that word) comes back and makes it to a second second conversion. So, algorithmic personalization or recommendations really are only capable of helping a small portion of your consumers, after you get to know them.

An actuary can build statistical models that deal with vast population samples, telling the breakdown of what will proportionally happen in certain events. That’s interesting but it also deals with averages across large groups of people. Not necessarily valid to the point of algorithmically driven recommendations or optimization of an individual and their purchase potential or drivers.

I don’t intend to close the door on the subject, I do believe these approaches are helpful when other data is not available or when you have A LOT of information and you want to solve a retention / lifetime value issue… which are both great issues to solve. From my experience though, many brands believe they can use these technologies, in particular recommendation engines, to help solve an acquisition problem. Hmmm.

Love to hear your thoughts!

Mark


“Insinnuendo” – words the English language should have

December 20, 2008

[in-sin-yoo-en-doh]

–noun, plural -dos, -does.

  1. An indirect, covert or artful suggestion or hinting, as of something implied involving the slanderous art or power of stealing into the affections and pleasing; ingratiation:intimation about a person or thing, esp. of a disparaging or a derogatory nature.
  2. Archaic. a slow winding, worming, or pleasing in.
  3. Obsolete. an ingratiating act or speech given to one of the opposite sex.
  4. Law:
  • (in an action for slander or libel) the explanation and elucidation of the words alleged to be defamatory, in particular if the stealing of affections was perceived as less than pleasing by the party of the first.
  • A poor parenthetic explanation or specification in a pleading.

What is behavioral targeting?

October 5, 2008

When you’re in a conversation and somebody uses this term, your first question should be… is this on-site or display ad behavioral targeting?

Typically, when referring to banner ads, behavioral targeting relates to the use of data regarding consumer behavior that’s learned across numerous domains. I’ve tracked a new industry group that’s tasked with defining standards and definitions for behavioral targeting, Behavioral Targeting Standards Consortium (BTSC). After reviewing the site once again before this post, it’s interesting that they don’t have any content yet regarding the accomplishment of this objective. Seems like it would be somewhat simple to define a market in broad terms, guess not.

On-site behavioral targeting is often times referred to simply as on-site targeting. Typically, it relates to individual consumer information that’s used to segment and them either serve a different experience on a website or measure the difference in reaction to particular aspects of a site by each segment.

This distinction is critical because it demonstrates how young the discourse is in the online industry. The idea that two words can mean very different things to two people who share a similar role should be rather concerning. And, is likely why we have confusion around many subjects.


Behavior is only one datapoint

September 29, 2008

Much has been written about on-site consumer behavior and its applicability to targeting programs. Despite this, little is really known about types of behaviors that are tracked or trackable, and which ones are truly indicators of or useful as a high-value targeting mechanism. It’s possible that we’ve over-inflated the importance of behavior and overlooked other things that should be considered. And, in doing this, headed towards a focus on a technology solution that relies upon the use of highly personal consumer information to fuel its’ engine… raising the concern of consumer protection groups and the governments of many countries.

Types of behaviors that are tracked or track-able:

  • On-site, single domain behavior – probably the least contentious source of data, easily believed by consumers as a valuable source of data to help marketers connect with consumers. Often called re-marketing, in a recent MediaPost article, Jeff Hirsch, the CEO of Revenue Science and Behavioral Targeting Standards Consortiumfounding member, specifically stated that this a limited version of behavioral targeting.
  • Cross-domain behavior – algorithms consume a large quantity of data, including searches, product views, and domains visited in the attempt to identify a sense of interest on the part of an individual consumer so a marketer can target ad messages. The aggregation of this data can occur via cookie tracking across a network or more recently there’s been attempts to validate the process of intercepting and interpreting all web activity from ISPs (i.e. NebuAd), creepy.

However, in all the dialog about behavior, what other data points are available that marketers can use as targeting methodology? Or, from a more important strategic perspective, what is the objective of a marketing program and which data points can help the marketer accurately identify and target?

My assertion is that other data points are more effective at targeting, achieving marketer objectives. Here’s why I say this:

  • Today, only a minor portion of display ad spending is funded towards behavioral targeting. Display ads are largely brand oriented. Marketers tend to choose domains as their primary targeting mechanism. Behavioral targeting comes too late in the purchase cycle to affect brand preference and attitude, it’s more of a “hail-mary” or a direct response tool.
  • Virtually no on-site targeting is the result of multi-domain data aggregation.

What other data points are available, without any fancy technology:

  • Geography, language, and season – these have been used for generations in the offline environment very successfully, why don’t we use them on line more often? The interesting point is that these data points are largely available to everyone with very limited technology constraints. Between a site visitors IP address and their browser settings, these data points are easy to use. Whether display ad or on-site targeting, these are available today.
  • Returning customer or new prospect – again, these are largely available to marketers today. Why not use them? Certainly, every marketer would like to speak to a new prospect in different terms than they would an existing customer.

In a later post I’ll try to talk about targeting options that require more sophisticated technology. Until then, send me your thoughts!

Mark


Opening day at Forrester’s Marketing Forum – the keynotes

April 8, 2008

Engagement. Not only is it the theme of the forum, it’s a solid description of the participants and our hosts… Engaged.

Recap of the keynote presentations…
Brian Haven kicked things off with a great presentation…

Engagement = fundamentally a different view of customers. Engagement is about relevance. It’s about developing strategies to find, monitor, measure and leverage the opinions and behaviors of a brands’ interaction with their market influencers.

Engagement model:

 

The emphasis of this model is to change the marketers view of the customer and the company’s relationship with them. The new view is a dialog. A dialog that involve motivated customers and gain their interaction with an organizations brand. The inner circle describes the process from the consumers perspective.

Mark


Online consumers are driving changes in off-line purchase behavior

March 24, 2008

“…The sluggish economy is punctuating a cultural shift enabled by wired consumers accustomed to comparing prices and bargaining online, said Nancy F. Koehn, a retail historian at the Harvard Business School… Call it the eBay phenomenon…

This quote is from an excellent article in the 3/23/08 New York Times. The author, Matt Richtell, sites quotes from spokes people and shoppers of stores including Home Depot, Ralph Lauren, Best Buy, and Circuit City. As well as analysts from Wachovia and Pacific Crest Securities.

Highlighted is the point that this is revolutionary as consumers shifted away from haggling as a method of conducting purchases back in the 1850’s. 

This is a great example of the consumer empowerment theme of this blog. In the “About” section I described it further… driven by the adoption of technology and acquisition of the “perfect knowledge” typically held by the brand marketer, consumers have turned the hand of marketing teams for leading retailers. The NYT author described it as “…Savvy consumers, empowered by the Internet and encouraged by a slowing economy…”

It’s interesting to read examples of how consumers executed two key strategies:

  1. Online research -> developing a target product selection and then research prices. These prices were then used as ammo to drive sales people on the retail floor to lower their prices.
  2. Play “good cop / bad cop” with sales people.

In the end, consumers and their changing habits have changed the course for their relationship with selected brands. In this case, lowering prices.

Love to hear your thoughts –

Mark


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