Archive for the ‘Uncategorized’ Category

I haven’t been blogging under my own blog since I joined Tahzoo a year and a half ago.  For my most recent posts, check out blog.tahzoo.com 

Srividya Sridharan of Forrester Research, posted the question of “How real is real-time” on the customer intelligence community. I’d like to share my reply to her.

There are multiple areas of marketing in which real-time has a unique definition, it’s own importance and a set of tools, practitioners and process that enable it.

From a transactional point of view, real-time means being able to transact from start to finish with no latency. In ecommerce, this is a given, although it surprises me how many websites still ask the customer to submit a form, or call a rep. to get a quote, complete a transaction or get customer service. The Holy Grail of this type of real-time marketing is the complete integration of multiple channels including online, social and in-store. While some, mostly B2C, retailers have done a good job combining online shopping, order and payment with in-store availability and pick-up, this cross-channel experience has rarely been duplicated in the B2B world where sales are still driven by direct sales forces and represent long and complicated purchase cycles. for example, it’s still virtually impossible for a company’s procurement department to negotiate, transact and fufill an enterprise software licensing agreement online.

From the data perspective, real-time refers to the ability to collect and process data in real-time. Whether transactional or behavioral, it is usually focused on the online advertising, search, web or email experience and increasingly user generated activity on social networks like Facebook and Twitter. There appears to be the most momentum in capturing and analyzing social data, which is created, distributed and reacted to in real-time, however most marketers, agencies and analytics providers are still trying to apply the same methodologies to social as they have used in the past to understand traditional channels like broadcast and print. Needless to say, the importance of frequency and reach is completely different when applied to multi-facted social relationships. it is is this area of campaign management and analytics that appear to be paying the most attention to trying to achieve real-time. It won’t be difficult to generate mountains of data, but the trick is having the resources to understand the data and most importantly use that data in real-time. There appears to be very little progress in brands ability to act in real-time.

And finally, the most important area of real-time, is the one most overllooked; understanding the customer in real-time. We spend a lot of time, technology and resources to understand what consumers did in the past and hope that will help us predict what they are going to do in the future. But we devote very little energy to finding out what’s important to a consumer in the moment and then being able to communicate with them in a manner that is relevant to them in that same moment. This is the real real-time Holy Grail and in an increasingly ADHD afflcited world, this is the key to cutting through the noise and engaging customers on their terms. This is why I’ve started my new company Blab. We’re all about relevancy and relevancy is both listening as well as creating and distirbuting branded content. Check our our website for more details about our approach, http://www.blabbings.com.

Let’s start with understanding the problem. It’s not that CMOs and CIOs speak different languages, it’s that they fundamentally approach problem solving differently. Most CMOs come out of the advertising and creative world of the “big idea.” At the end of the day, they are dealing with abstraction, creating emotional ties to an ephemeral concept, known as the brand. While they can measure success from outcomes, they can never conduct QA testing to see if the solution works or not. Whereas most CIOs come from an IT background where at there is ultimately a “right” answer or solution to a given problem and it is easily measured b whether it works or not. And the outcome of working is out of scope.

At our company, Blab, I’m lucky that our CTO Joseph and I have a strong working partnership. It comes mutual respect (very common at C level), shared goals (common if business focused) and most importantly, because we spend a lot of time together talking through ways to solve problems.

I’ve learned some of the lingo of technology. I have a rudimentary understanding of database schema and at least don’t cringe when I hear the terms php, ruby on rails and lamp stack. I recognize they are development languages. But what is more important is that I understand that they are critical to my being able to effectively and efficient communicate with my customers across multiple channels.

Joseph, on the other hand, has not spent his entire career managing IT infrastructure. He can write code himself, actually thinking its fun and is excited about solving challenging problems. He’s learned something about frequency and reach and the abbreviations, cpc, seo, sem and crm don’t make his eyes glaze either.

But the real key to our mutual success is sitting down together in front of a whiteboard and sometimes over a beer, talking about the big picture issues we both face. Are we keeping up with our customers? Do we understand the problems they have? Are we equipped with the ability to listen to our customers, analyze what they’re saying and acting on the insight before it’s too late.

Joseph’s mind certainly works differently than mine. He often comes up with a completely different perspective on the issue and as often as not, his logical rational mind is as perceptive as the most gifted and creative brain. And then he tells me how he can build whatever it takes to bring the idea to life.

There was a recent story on NPR that really stuck with me “Dear Santa: Make My Mommy Happy.” The obvious emotion connection was, the tone of kid’s letters to Santa are getting sadder and instead of asking for flashy big ticket items like flat screen TVs, they’re asking for things, both simpler and harder to deliver, like happiness.

But what really hit me was that a barometer of culture may exist within the basement of the New York City post office. Most of the trends we hear about at this time of year are about things like, are retail sales up or down? What is the “it” toy? What’s the level of consumer confidence? Or they are trends in the form of hash tags on Twitter or wall posts on Facebook. Most of these trends are spoon fed to us with a bias; social, economic or political. Such trends are produced because the support a point, make good story copy or are trying to drive a certain behavior. For example, if we keep hearing consumer confidence is up, we might start buying more….

But back to the basement of the NYC post office. Here Operation Santa Claus is collecting unbiased, honest consumer trends; “out of the mouths of babes.” Their letters reflect personal experience, with no agenda other than having their dreams fulfilled by Santa.

I’d suggest that all of us, especially marketers take note of the value of honest unsolicited trends. Learn to separate them from the trends generated by the “professionals” or by brands and their competitors. Both shape cultural trends, but they don’t necessarily reflect the real voice of the people.

I just read a great report, “eight Customer Experience Megatrends,” from Bruce Tempkin, formerly an analyst with Forrester Research. While every consultant likes to issue their predictions for the next big thing or the direction of the market, I found Bruce’s list and more importantly the key implications of each trend, a stimulating read. Here’s the list. To read the complete report, go to Bruce’s blog, Customer Experience Matters
1. Customer insight propagation… customer insights will drive decisions across the company
2. Unstructured data appreciation… text analytics will become a critical capability
3. Customer service rejuvenation online interactions will increasingly use touch-screens
4. Loyalty intensification… loyalty metrics will be a major element of executive dashboards
5. Interaction iPod-ization… online interactions will increasingly use touch-screens
6. Social media assimilation… social media will get absorbed into the fabric of companies
7. Digital/physical integration… experiences will blend mobile devices with retail locations
8. Cultural renovation… engaging employees will become a key stepping stone for engaging customers

AdAge magazine just released its 2009 annual agency report today, ranking all the top agencies by revenue and grouping them according to what may be dying distinctions like advertising, direct, media, digital, search and PR. Overall agency revenues were down 7.5%, “the sharpest revenue decline in the 66 years Ad Age has produced the Agency Report.” Although digital agencies overall faired a bit better, statistically gaining 0.5% over the previous year.

But what I find more interesting than anything else is that digital agencies, once considered the mavericks, the outsiders are now about as mainstream as possible if for no other reason than almost all of the top twenty agencies are owned by much larger agency holding companies. The true independents are becoming rare indeed. It started a couple of years ago with Publicis gobbling up Digitas. They have since acquired Razorfish as well. Blast Radius is a part of WPP and the #3 digital agency is IBM Interactive and we know nothing speaks independent more than being a part of IBM.

In fact of the top 20 digital agencies, only 5 are not owned by a much larger company. And of those, Sapient has merged with Nitro, Rosetta bought Brulant and iCrossing appears to become a part of the Hearst empire.

What does all this mean for independent agencies, for marketers and for consumers? Well, sitting in one of the top five remaining independent agencies, Ascentium, makes me feel like I’ve got a bull’s-eye on my back and I’m waiting to hear the M&A types pounding at my door. And perhaps that might not be a bad thing from a financial point of view.

Although for many us who have done both the big agency and the startup, we know why we went for the small option. It’s more fun, we get to work the way we want to and it frees up our creative juices. Frankly we produce better work because we feel like it. That’s the reason a lot of corporate marketers are turning more and more to independent and specialty shops; that’s where the ideas, the new technologies and the partnership mentality come from.

And finally, what about the consumer, do they care where marketing campaigns and experiences come from? Maybe not, but according to the latest from Forrester, watching advertising ranks lowest among consumers as a measure of influence, purchase intent and loyalty. And it’s the big guys who still make most of their money from these forms of traditional push advertising. So go figure.

I’m proud that Ascentium has made it to the #5 position among independent digital agencies this year. And I hope that demonstrates both our preference for going it alone and for our clients’ preference to work with an agency who considers their clients their partners, not their holding company.

Increasingly CMO’s are being brought into the technology buying process as technology is becoming even more intertwined with today’s multi-channel, multi-device world of marketing. And it’s up to us in the agency world who call ourselves trusted advisors to come to their aid.

It’s impossible to be a successful chief marketing officer (CMO) without becoming engaged in the understanding and decision making regarding technology. In a recent Forrester Research study, “The CMO’s Role in Technology Decisions”, David Cooperstein states that while “traditionally, marketing leaders treated IT as a foreign land that had a native language they didn’t speak… today’s marketers can’t afford to be lost in translation because digital channel embed technology in everything, marketing and the multi-channel customer experience are inextricably linked and fewer resources require strapped marketers to use technology to scale.” In other words, CMOs don’t really have a choice, either they need to learn the language of technology or they will not be able to compete in today’s digitalized, mobilized and socialized world of the interactive, integrated customer experience.

So who can help CMO’s learn the language of technology? Most (55%) look to their own IT departments , even though “strained” was the most common word to describe the typical relationship between CMOs and CIOs . And in smaller numbers, they look to their traditional agencies (21%) and management consultants (17%) for support. But almost half are looking towards their interactive agencies (49%) and their marketing services providers (44%) . And it is this audience that I believe has the responsibility to take the lead in helping CMOs navigate and make the smart business decisions that make the difference between leadership and falling behind.

But even within the worlds of the interactive agency or the marketing service providers, there are still large gaps in understanding what technology means for marketing and how to make the most of limited resources and the rapidly changing world of the customer experience. Most interactive agencies are either focused on online advertising or the increasing diversity of rich applications for platforms like Facebook or smartphones. While marketing service providers continue to concentrate on the silos of their own product’s capabilities despite the expansion of technology communities like Salesforce.com’s Appexchange or Omniture’s Genesis program.

At the risk of drawing the ire of my agency colleagues, I see the greatest opportunity in the hands of the emerging marketing practices of marketing consultancies like Accenture Interactive or McKinsey or the consulting arms of research organizations like Forrester or eMarketer. If CMOs have to be able to understand how technology will help them in the achievement of their business goals, then they need help from someone who first understands their business, their customers and how the complexity of the customer experience across all touch points can be influenced, optimized and in the end monetized.
And so it’s up to all of us in the agency world to embrace new roles as not just stewards of the brand, but as, business consultants who look equally to the worlds of creative, big ideas and technology as the best way to add values to our clients, the CMO. Because if we don’t step up to the challenge, someone else will.

1 Forrester Research, June 2009 Global Marketing Leadership Online Survey
2 Forrester Research, 2008 Partnering for Success: The CMO-CIO Relationship
3 Forrester Research, June 2009 Global Marketing Leadership Online Survey

The other week, a new report came out of Forrester Research, entitled, The Future of Agency Relationships by three analysts, Sean Corcoran, Dave Frankland and Vidya Drego. First, I highly recommend reading the full report if you have Forrester access. You can also check out Sean’s blog post, Marketers Must Lead Agency Change or read Michael Bush’s article in AdAge, Memo to Marketers: It’s Your Fault if Your Shop Flounders.

All the coverage does a good job of summarizing the changes to the way agencies should provide value to their marketing clients and more importantly to their clients’ customers, be they consumer or businesses. Forrester has identified three fundamental services they feel agencies must provide: Ideas, Interaction and Intelligence. They call it adaptive marketing. And they are sending a clear message to marketers that the burden is in their court to demand these services of their agencies.

I agree with the logic. Ideas will always be central, but if and only if, the ideas can be developed and converted into real, meaningful and engaging experiences for customers. As Forrester say, “Experiences become more prominent than campaigns.” Interaction is the process of converting ideas into experiences. And in general the process for interaction is what is changing most radically. Interaction used to be the consumption of messaging, mostly through traditional channels like broadcast and print. But today with the explosion of channels, devices and emerging media, interaction is highly dependent on technology to bring the “big idea” to life. And this is one of those areas where it’s the agency that needs to change more than the marketer.

Agencies can no longer hide behind the big idea or the visually arresting creative treatment alone. If they cannot provide experiences that they, together with the marketer, and most likely the client’s IT department as well, can build, execute, support and track, they will not be successful in a highly digitalized world.

And this leads to Forrester’s third “I”, intelligence. Customer intelligence is, or should be, at the core of every action, experience and program agencies promote, marketers adopt and businesses demand. While much of the process of coming up with the “Big idea” is still a very right brain, creative exercise, which demands talent, experience and the ability to communicate, it is the question of who do you communicate with, how, when and with what message that is at the heart of customer intelligence, or left brain marketing. Any agency that does not understand and value the role of data, research and measurement will not be able to deliver success to their clients. And any marketer who does not demand measureable success from their agencies will not be able to translate those marketing metrics into the business metrics that drive a company’s “C-Suite” and that will reward marketers with budgets, respect and a seat at the business table, which is definitely where a CMO should sit.

So, go check out the Forrester report and think about how it should impact your business, whether you are a corporate marketer, an agency or a marketing services provider.

Last week, I had the privilege of hosting Marketmix 2010, a marketing conference held in Seattle and co-sponsored by the Seattle Direct Marketing Association, of which I’m the current president and the Puget Sound chapter of the American Marketing Association. The theme was mixology, which was the creative expression of our idea of presenting content and topics bringing together the various marketing disciplines and channels covering online, offline and emerging channels like social and mobile.

The event itself was wildly successful. It was very close to a sold out crowd and most of the breakout session were standing room only. The three keynotes of the day were about as representative of Seattle as possible. The day kicked off with Steve Jarvis VP of Marketing at Alaska Airlines sharing the stage with Andrea Schwarzenbach who drives Alaska’s interactive efforts. And the day was rounded out with the closing keynote given by Tom Vogl, VP of Marketing for REI. Both keynotes showed how brands are grounded solidly in customer experience and that the ownership of those experiences goes far beyond the marketing department. The presentations were recorded and I’ll update this post as soon as they have been posted.

But it was the lunch keynote that surprisingly left me with the most to think about. The speaker was Tom Douglas, Seattle’s resident celebrity chef, owner of five successful restaurants, a line of kitchenware on Amazon, a dozen cookbooks and appearances just about everywhere. I had the chance to talk with Tom before his speech and he asked me why we had invited a chef to come speak to a bunch of marketers. I said something about his having built himself into a successful brand and was really thinking to myself that he served as a break from the more intense marketing subjects covered at the conference.

As soon as Tom began speaking, I realized that not only had we picked a good speaker, but that he also had something to teach all of us wizened marketing experts. “You have to live your brand,” Tom told the crowd. Every day you have to be true to your brand or it won’t have any credibility and it won’t last. He also was very proud to say that he linked himself very directly with the Seattle brand. He represents what makes us unique up here in the Pacific Northwest; from our salmon to our wine and of course our addiction to coffee. Tom finished his talk, taking lots of questions, getting wonderful applause and unabashedly telling us to go out and eat and his restaurants. After all, building a brand is just a way to grow the business.

The next day, I was walking down the street in downtown Bellevue, on the Eastside. For those of you who don’t know the geography, culture and snobbery of Seattle, Bellevue is a former bedroom community whose population, wealth and skyline has exploded in the last decade or so. Like so many prosperous suburbs, it residents are well educated, have higher than average incomes, are generally transplants from the suburbs of some other metropolitan area and tend to like the more fashionable brands. True Seattleites tend to look down on Bellevue and it wasn’t so many years ago, it was referred to as the Californication of the Northwest.

To be fair to Bellevue, which is where my office is and where I spend a lot of my waking hours, it has matured significantly over the years and while still run the risk of being run down by BMWs, Lexuses or the occasional Ferrari if you actually walk on the streets, it is no longer the cultural wasteland we Seattleites like to think it is.

But back to Tom Douglas and living you brand. As I was walking down the streets of Bellevue, I walked past an Italian restaurant, an Irish pub, a Mexican joint and several flavors of steak and seafood establishments. All are respectable and offer quite an assortment of cuisines. But then I realized what they all had in common; they were all parts of national chains.

I could think of at least a dozen neighborhoods in as many cities, where I could walk down a block and find the same set of choices. That was nothing that spoke with any authenticity to the Pacific Northwest, there wasn’t a real Mr. Maggiano, they don’t really manufacture cheesecakes and I doubt I will ever meet the real Joey. In fact the only place I could think of that really was real, was the Twisted Cork, located adjacent to the Bellevue Hyatt. (Irony of irony, since I wrote this post over the last couple of days, Twisted Cork has gone out of business)

So Tom, thanks for sharing with us your brand, thanks for living it and I hope that your authenticity will survive the onslaught of artificial brands that serve us plastic food, with plastic smiles and not so slowly turn our unique identities into a 21st century high-end strip mall.

A couple of weeks ago, I had the privledge of speaking at Webtrends Engage 2010, their annual user conference. Each speaker was given 5 minutes to present a keynote. Here’s the link to the video http://tiny.cc/P2xgp