Who’s Really the Competition

Who’s minding the competition?
I just wanted to pass along a personal anecdote about buying a book. Last weekend we had some friends over and my wife and a couple of friends started talking about a great new book they wanted to read. All I heard was that it was from the same author of The Shadow of the Wind.

To make a long story short, I went into a nearby Barnes and Noble today to buy the book for my wife. Since I didn’t know the name of the book, I binged (the verb to Google is sold school) the shadow of the wind from my mobile and got sent to Amazon. From there it was easy to click on the author’s name, Carlos Ruiz Zafón, and find the name of his new novel, the Angel’s Game.

On Amazon it was $16.17. Staring in front of me at Barnes and Noble, it was $26.95, or 40% more. So wanting to save some money and a bit out of principle, I walked out of the store, planning to buy the book online when I got back to the office.

On the way back to the office, I stopped into the Deli counter of my local grocery store, QFC, to buy a sandwich to take back to my office. Walking through the store, I see an end cap display of new books including The Angel’s Game, at 25% off the suggested retail price. I ended up leaving the store with a roast beef sandwich and a copy of the book. I saved almost 7 dollars and I had the book in my hand instead of waiting for shipment.

The moral of the story is, well… purchase behavior is a fleeting thing. I represent a modern multi-channel shopper. I used a mobile interface to help me find what I wanted and compared prices. And the significant discount online was enough to alter my purchase intent. But then a completely different channel became open to me, one that provided me with enough of a discount to get me purchase on the spot and change my typical behavior. In the end, the grocery store won my book purchase. Knowing the competition isn’t always enough.

Forrester Research features Ascentium among the top Interactive agencies

On Friday, Forrester Research published its Forrester Wave™, Interactive Marketing Agencies – Web Design Capabilities, Q2, 2009. Ascentium was covered for the first time along with other top digital agencies including Sapient, imc2, Razorfish, IconNicholson, IBM Interactive, Organic, Blast Radius, iCrossing, OgilvyInteractive, Resource Interactive, and Rosetta, Critical Mass, Molecular, R/GA, VML, Whittmanhart and Arc Worldwide.

In addition to just being favorably reviewed among such a great group an agencies, we take pride in that Ascentium scored the highest out of all the agencies in the category or customer satisfaction. We credit that in large part to emphasis we have given to growing customer loyalty and constantly measuring it with tools like Net Promoter Scores.

When I joined Ascentium almost four years ago, we were primarily a technology consulting firm with strong Web development skills and some good design talent, but we hadn’t yet made the commitment to become a true full service digital agency. But we got together as a team and agreed that the future was in leveraging technology to advance marketing and to move from advertising to engagement.

Three years and a roster of blue chip clients like Microsoft T-Mobile, Dell, Cisco and Random House, later. We have garnered the attention of the likes of Forrester Research and have grown from a local Seattle-based firm to an agency with offices across the country and internationally as well.

It’s been a privilege to be a part of this journey and to have helped nurture it along the way. It wasn’t always easy teaching technologists and marketers to not only get along, but to actually work synergistically, to create a new model for what Forrester has called, the agency of the future.

So congratulations to all the other agencies featured in the Wave, thanks to all the analysts at Forrester who have seen value in what we’ve created and well done to each and every employee I have the privilege of working with at Ascentium. Just wait for what we have in store for you next.

I’m Hearing from more colleagues than ever before

There’s been a definite upswing in the number of ex-colleagues who are reaching out to me via LinkedIn, Facebook, Twitter or via good old fashioned email lately. I’m glad to hear from them as I believe that is one of inherent values in social networking, re-connecting with people you have lost touch with over the years and multiple moves.

The problem is, the common thread of many of these re-connections is that they have been laid off or in some other fashion, find themselves actively looking for new career opportunities. And these are not the grade B people you knew, who while likeable enough, you knew were never going to be ready for the “big time”. Today, it is the A list just as likely to be out searching for something new. The economy has picked stripped the fat and is now eating into the meat and muscle itself.
Last week I attend Forrester’s Marketing Forum and the theme was that it was time to invest in the future. And that is what the smart companies are going to do. But there are still many, many companies who are afraid to invest, the risk is too high where sheer existence seems to hang by such a thin thread. But it seems such a shame to waste the brilliant talent that’s out there right now, filling their days searching Monster.com and cleaning out the basement.

So I’d like to propose that all those companies who are faced with declining revenues and uncertain futures, reach out to the very smart people who have been sidelined and figure out a way you can work together to map out a future that will serve everyone’s best interests and get the ball rolling again.

RFIDs for People, it’s finally here

Chipmaker, BrandChip Inc., announced that they have perfected a RFID chip that can be embedded in jewelry, watches or other personal items commonly worn by average people. This chip will contain opt in personal information regarding the wearer’s tastes, shopping habits and brand preferences. Participating retailers will be able to access the information whenever the wearer comes into the store and can then automatically generate a special offer via mobile phone.

This is the ultimate in one to one marketing. Don Rogers of Peppers and Rogers fame has been quoted as saying he’ll sign up as soon as he can and looks forward to getting some great offers from The Sharper Image. Google is figuring out how to offer a stripped down version for free and Microsoft is said to be studying it and should have a beta in market by 2015.

I applaud these efforts and look forward the next generation when they won’t even need the mobile connection. You will be able to get the offer straight from the chip.

Oh, and by the way, have a great today, April 1, 2009

Other agencies aren’t the real competition, IBM is

I just read a very good report prepared by the IBM Institute for Business Value entitled, “Beyond Advertising, Choosing a strategic path to the digital consumer.” While the article itself doesn’t contain and new thinking, that I haven’t heard discussed across many of my peer networks and among the analyst community like Forrester Research, what does stand out is that IBM, a technology and business consulting company demonstrates it understands what most agencies and marketing services companies still fail to grasp. What it tells me is that instead of worrying about other agencies, especially the large traditional holding company ad agencies, my real competition is going to become more and more the big consulting firms who see the challenges of marketers for what they really are, business issues, that affect the very core of how a company operates and what will make it successful in the future.

The only solace I can have is the fact that while the big consulting firms can do a good job of identifying the problems, they are not equipped to actually produce integrated brands, marketing programs and technological infrastructure necessary to achieve the solutions they will recommend. That still leaves an open field to companies like Ascentium and Sapient and a handful of others. But we had better not slow down the innovation we bring to our clients, or Big Blue will be pushing us out the door.

The PI is Dead, Long Live the PI – Let’s mourn the paper, but not the news

Today was the last day I will get the Seattle Post Intelligencer on my doorstep in the morning. The 146 year old newspaper has run up against a failed business model and ceased being a traditional print based newspaper today. As of tomorrow, it will exist only as an online news site and it’s unsure what the experience will be.

First, let me shed a tear for nostalgia. No I’m not being trite. I have a lot of respect for what has gone has on before me. The Seattle PI has been a great local paper, although its history has lots of less than Pulitzer prize winning stories (remember the Pulitzer prize is named for one of the worst of the Yellow journalists of his day). That’s a long way of saying I hope the big revolving globe atop the PI’s headquarters continues to spin. I also shed a tear when the giant pink toe shaped “toetruck” was hauled away and was saddened when the twin tepee restaurant (horrible food) was torn down. All were symbols of Seattle and a loss to our popular culture.

But, I am less worried about the state of journalism in Seattle. For every professional journalist whose investigative reports protected us from corruption and misdeeds, I have had to put up with a thousand articles about non-news or yesterday’s news. I’ve also gotten way too used to having to read syndicated articles written thousands of miles away, purporting to speak to issues like employment, real estate and culture that have nothing to do with my local world.

Citizen journalists are far from perfect, but the same can be said for professionals. So let’s hope that citizen journalists will fill the void left by the loss of the PI and let’s hope that we can live without opening the morning paper, sipping a good cup of coffee and learning about man biting dog.

For every role, many hats may be worn

Microsoft just launched a new Web site last week called Office for Business, www.microsoft.com/officebusiness. Normally that wouldn’t be an earth shattering event, microsoft.com is the most heavily visited corporate Web sites in the world and comes right after the major search engines in total traffic. What is noteworthy in this launch is how Microsoft is using role-based marketing to reach out to their audiences and understand that customers don’t look at the world from a single perspective. It should be noted that my company, Ascentium, designed and built the site for Microsoft and I led up the customer engagement, so I am open to claims of bias. I really think it’s a good Web site.

The premise of Office for Business is that business people are using the Web as a research tool to find tools to help them with their business. And that not only do different people represent different roles, individuals may wear multiple hats regardless of their role. This is especially prevalent in the small to mid-size business and has become even more important given the cut backs coming from the weak economy. In the case, the roles/hats addressed by this site are; the end user, the business decision maker and the technologist. These roles are captured in the statements, “Office works for Me, Office works for my Business and Office works for my IT.”

But if you dig a little deeper into the content on the site, you begin to understand that it’s not as much about different roles as it is about the multiple hats a single role plays. Microsoft understands that at the end of the day, it is the audience segment they call the Technical Decision Maker that typically has the final say in software purchases, upgrades and renewals and that while that role most likely lives within the IT organization, the person occupying the role may look at the world from other points of view than simply a traditional IT professional. In their recent article, “Role Profile: The CIO” Forrester Research reports that 39% of CIOs come from a non-technical/non-OT background. They say that “a great CIO is a strategic business partner who can innovate, think commercially and show business results.” In other words, they are just the guy in the server room fixing network issues.

We know from behavioral research that people’s first reaction to marketing is very individual. They aren’t thinking, “What can this thing do for my business”, they first think, “what can it do for me”. After that initial reaction, when the rational side takes over, their organizational role takes over and if they are a business person like the VP of Sales of Director of Accounting, they start to look through the lens of their role. In the case of the technical decision maker like the CIO or IT professional, they start thinking not just about the business benefit or solution, but how the software can be deployed and supported in their environment. Now what happens if the same person fills multiple roles or wears multiple hats?

In today’s world of tough economic decisions and ever scarcer corporate resources, the technical decision maker needs to be able to make their case for software investment, not just from their point of view, but from a business perspective to justify the spend and from an end user perspective to ensure adoption. On the new Office for Business Web site, this is exactly what Microsoft is trying to. The site is built around different scenarios, captured under the headings of Work Smarter, Work Better and Work Safer. Then within each scenario, they address the what can Office do for the user, the business and for the IT organization. It is hoped that this multiple perspective approach will build the case for each audience group to want the software.

Time will tell if the approach is successful. But given the increased scrutiny associated with any capital expenditures these days, it’s reassuring that an organization as large as Microsoft understands how their customers are looking at their own business needs.

Razorfish and Crispin Porter & Bugusky Layoffs, When Strong Reputations are no long enough

I just read a few minutes ago that Razorfish, one of the top digital agencies, and one my company, Ascentium’s, chief competitors, announced layoffs of 70 people. This is hours after I heard about Crispin, Porter, & Bugusky, one of the brightest shining stars in the advertising agency world, and a partner of Ascentium, announced layoffs of 60 people this morning. Both companies are considered at the top of the industry. Both excel at creative ideas, well-executed and yet both are taking pretty big hits on the same day. And personally, I know people at both companies from our work together at Microsoft. So what does this mean?

The deep answer is I don’t know yet, but it will make me take a look in the mirror and make sure I’m doing everything at my company so that we don’t suffer the same fate. However the more immediate answer is that this sends a clear signal about the progression of this economic downturn. When good companies make cuts, it’s a sure sign that even in the new digital world of marketing, most of the fat must already be gone, because the industry is cutting into the muscle.
My heart goes out to everyone at these two organizations who is out of a job. They say it’s not personal, it’s just business, but having personally been on both sides of the axe. It’s a lot more personal if you’re the one without a job. Good luck to everyone and let’s hope for the change sooner rather than later.

High ROI Marketing Strategies for a Down Economy

high-roi-tips1Last night I had the opportunity to moderate a great panel discussion on the topic of High ROI Marketing Strategies for a down Economy, held in conjunction with the Seattle Direct Marketing Association, SDMA. monthly dinner meeting.  The panel consisted of Andrea Schwarzenbach from Alaska Airlines, Andy Cotton,Yahoo, Jamie Lomas, AdReady, Brian Ratzliff, WhatCounts and Michael Williams, Williams-Helde.

The was a great turnout of about 85 marketing professionals from all over the Puget Sound and the discussion was both lively and thought provoking.  The overriding messages were; don’t be afraid of the economy, now is the time to try something new and pay more attenpation to your customers.

I had asked each panelist to come up with 1 tip that they could pass on to the attendees and we put all the ideas together in a short deck.  Take a look, download it or pass it on to a friend.  We all got a lot out of the evening and I hope you will as well.

Microsoft, it’s not about layoffs, it’s communication

With all the buzz and rumors about layoffs at Microsoft, most of the pundits are missing the point.  Yesterday President Obama said about government, “it’s not how big or small that matters, it how it works.”  The same idea applies for Microsoft.  It’s not about how many employees they have, it’s about how well they work together and what they produce.

Microsoft is one of the great companies of our age.  Despite all the naysayers, I know that if it wasn’t for Microsoft, we probably all wouldn’t be tapping away on our keyboards and instantly being a part of a new global community.  The same can be said for Google, Apple and the many other game changing enterprises that have created the Web2.0 world we live in.

But, it’s also been said the Microsoft has lost its groove (although actually, Groove is a great product).  Next generations of its flagship products come out slower than expected and without any new “killer apps” in the features.   Again, the same can be said for most of the others.  Apple is an example of brand and aesthetics, not technology and Google is worth what it is because it’s replacing the TV set as the place to see commercials (which they call search results, but they ultimately are still ads).

So what is Microsoft’s real problem?  Instead of selling a hundred projects in various suites, bundles or packages and marketing each separately, they need to get very focused on what they actually are.  And to my mind, what Microsoft actually is, is a communications company.

We use Word to communicate via the written word.  We use Excel to communicate numbers.  We use SharePoint to communicate among ourselves.  We use Atlas to communicate to complete strangers and we use Windows to communicate with our technology.  And since communication is the key to commerce, education and perhaps world peace, Microsoft should lift itself to the same level of Bill Gates’, Gates Foundation, by trying to ensure that each individual life has equal worth.  By facilitating communication, Microsoft can approach the same goal.

So forget about layoffs or re-organizations.  Focus on what really matters, what Microsoft is delivering to the world around us.  Let us all communicate.