I just read a really stupid article in AdAge

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I don’t ever like being critical of any of my peers, but sometimes, I just have to call a spade a spade. I just finished reading an article in Adage, entitled, “Our Biggest Brands can no longer be managed by nerds” by Tom Hinkes. His basic premise is that using data to inform marketing decisions somehow is responsible for the loss or the demise of CPG brands.

While I agree that “brand marketing is not a science, it requires analysis, discipline and detail. Even more, it requires intuition, flair and vision,” what I disagree with is the confusion between data and “numbers”. Using advances in market research, analytics and more recent social monitoring to listen to your customers, gain a greater understanding of what motivates them and responding to their needs/desires is not being a “bean counter”.

What made Starbucks a success was not that Howard Schultz ignored the research and went with his gut; it was that he was able to see the real needs/desires of his audience. They weren’t interested in coffee or soft drinks; they were interested in human interaction and a place where that could happen. And that type of insight is exactly what data and the successful understanding of data can bring about.

So I would counter that it’s some traditional brand managers who can’t see the forest for the trees and it takes a new more strategic business focused approach to be successful in today’s marketplace. So instead of being afraid of nerds, learn to listen and then apply the intuition, flair and vision that makes brand marketing as much art as science.

Ascentium Names first Chief Client Officer

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I am proud to welcome the newest addition to Ascentium’s ranks, David Blum who has joined in the newly created role of chief client officer. David has joined Ascentium after leading interactive for Butler, Shine, Stern and Partners, the Bay area advertising agency, named small agency of the decade by Adweek.
Not only does David bring tremendous talent, energy and experience to the job, but what is more important is what it represents to an agency like Ascentium.

Over the last few years, Ascentium has been steadily building a reputation as one of the nation’s leading digital agencies, producing great work for client’s like Microsoft, T-Mobile, Cisco, Precor and Samsonite. But being the best digital agency is only a milestone on the road to helping redefine what agencies should look like in the future.

At our core, we are an experience agency. We meld passion for big ideas with an obsession for performance that produces engaging experiences, not just on the Web, but across multiple platforms, channels and devices. And to do that, we need to take from what traditional advertising agencies do best; own the “big idea” and manage account relationships and fuse that together with what digital agencies are known for; innovation leveraging emerging channels, technologies and customer behavior.

David Blum’s arrival at Ascentium will help us do that. His experience at BSSP helping to win major AOR accounts like Priceline, Allstate, Greyhound, Columbia Sportswear, Chipotle, Epson and Radio Shack coupled with the work he did managing Razorfish’s web development group in Seattle. Give testimony to Ascentium’s commitment to going beyond digital and leading the evolution into a true Experience agency.

Check out the article in today’s Adweek online about David, www.adweek.com.

Digital Agencies are proving they’re ready to lead

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I read a very good and insightful article in today’s Adage, “Why Digital Agencies are Indeed Ready to Lead” by Jacques-Herve Roubert. I agree with his contention that Digital agencies are indeed ready to lead and as he points out, our company, Ascentium, is demonstrating that in fact with our relationship with Precor, but also increasingly so with some of our other accounts who are looking for to us for ideas and strategy and their traditional agencies for mass advertising.

The reasons for this are many and you pointed out some really good ones regarding where the energy, ideas and innovation is coming from. But the basic underlying reason is rooted in the business model of the big traditional agencies more than anything else. The traditional business model is based on revenue streams from media, not direct billable hours. This means that to be successful, agencies were forced into thinking about media as the prime distribution channel because that is how they make money. Digital agencies are not boxed in that way and as a result, they are able to look more broadly across channels and take a more customer-centric approach to communication than a media or product based approach.

Devotion to gathering customer intelligence across multiple channels online, offline and emerging social channels and then applying that to create customer experiences which produce trackable and measureable results is the key to our success at Ascentium and I believe that same can be said for the other great emerging digital agencies cired as well, like AKQA and TribalDDB. The big agencies are saddled with the innovator’s dilemma and while it won’t be the end of them, it certainly erects a big speed bump to innovation.

Look beyond Websites and start thinking, Integrated Digital Experience

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My company, Ascentium, was named by Forrester Research, as one of the top web design agencies in the country last summer. It was an honor and I think a fair reflection of some great Web sites we’ve been building. But at the risk of diminishing the importance of Web site, I believe we’ve entered a new era, when producing a great web site is not enough to have an effective web presence and to keep up with your customer’s digital experiences.

The other week, I had the privilege of speaking at the first annual Integrated Marketing Communications conference in Kansas City. My topic was the introduction of the Integrated Digital Experience concept. Its premise is fairly simple and does not represent rocket science. But like most important concepts, its not the understanding that’s difficult, it’s the implementation that’s hard.

I’ve uploaded my slide deck to SlideShare and in future posts, will begin elaborating on what IDE means and what are some easy steps to making it happen. Check it out at http://www.slideshare.net/jkottcamp/the-digital-experience .

Social Media; The Battle between Hype and Reality

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I had the opportunity to speak to the Forrester Research Technology Marketing Executive Council recently in conjunction with the Technology Forum in Chicago. The central theme of my talk was simply stated, as marketers, we need to start integrating social media into the rest of your marketing strategy and programs and stop treating Social Media as some magical new quasi religion.

I do not mean that there are not unique attributes of each of the various new channels, media and technologies that comprise social media; blogs, social networks like Facebook and LinkedIn, Twitter that we must examine, learn how to use and take advantage of in creating dynamic and meaningful experiences for consumers and businesses alike.

What I do mean is that instead of starting off with the attitude of “I’ve got to get me some of that Social Media stuff,” and invariably jumping right into figuring out which technology you need to buy, install and staff up to support, marketers needs to go back to their overall marketing strategies and figure out how each of the facets of social media can be leveraged to support their strategies, not drive them.

At this Forrester Research event, I had the privilege of delivering my talk on the heels of a presentation by Peter Burris, a research director at Forrester and a really smart and articulate guy. Peter’s theme was based on his recently released piece, Turning Your B2B Web Site Into A Community Hub. His premise, which I completely agree with, is that you need to start looking at how you integrate social media into your corporate Web presence. It is also related to the presentation I did at the Integrated Marketing Communications conference in Kansas City (see my post entitled, It’s time to look beyond Websites and start looking at an Integrated Digital Experience).

I won’t go through my entire presentation here, I’ve uploaded it at SlideShare and I encourage you to take a look. http://www.slideshare.net/jkottcamp/marketing-and-social-media-tmec-oct09

Market Researchers are the keymasters of loyalty

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I was thinking about loyalty the other day. I had just sat through a company presentation where we talked about the almost 2 years of experience we have with Net Promoter Score. In the same meeting we also talked about our new Web site and how we were going to start capturing visitor data via our Web analytics tools and then incorporate that data into our CRM system. And at the end of the meeting, the topic even began to cover the piloting of capturing social media data and putting that it into CRM. Wow, that’s a lot of data. But what’s the connection between loyalty and data.

In the past, I’ve written about two distinct ways that connect data and loyalty. First, by applying what I call Closed Loop Marketing, a company can create endless loops of communication between consumers and companies. By opting in, a company can track a Web site visitor’s behavior, match with data captured from offline interactions like events, retail transactions or customer service. Then if intelligence is applied to understand the needs and wants of the customer, a company can reach back out to the customer to advance to dialogue, drive incremental transactions or take care of service incidents, closing the communication loop and advancing the relationship and by extension increasing loyalty.

In other contexts, I’ve made arguments about how companies can begin to use a mix of behavioral data captured online, demographics from CRM systems and transactional data from line of business systems to enable predictive analytics that will optimize response rates, close rates and ROI in general.

But today I had an epiphany. The missing piece has been the role of market research. Traditionally we think of market research as focus groups, qualitative and quantitative research and endless cross-tabs slicing and dicing every possible sort of data. And more recently, market research has been turned upside down with the advent of online surveys like Zoomerang and SurveyMonkey. But what is still in its infancy is the pairing of market research analytic expertise with social media influence monitoring.

So what does it all mean? For over a decade we’ve been hearing about the 360° view of the customer. And this has for the most part meant getting more individual data about a customer to be able to sell them more. But what it lacks, besides the fact that virtually no one has achieved it, is that we need to stop talking about data and start talking about intelligence. Capturing transactional data from online and offline is valuable, but only if someone is looking at that data and gaining insight from it.

CRM is primarily a tool of sales people and sales people do not have the time, the background or the motivation to analyze data and turn it into insight. Campaign or brand managers are only interested in their slice of the customer and aren’t really the best choice to be the customer’s advocate.

My choice is to call upon the market researchers. Their skills lend themselves to be good listeners and good ones have the ability to synthesize and extract patterns, critical keys to gaining true understanding of behavior.
So to all of those fellow travelers in the market research space who are seeing their budgets being stripped, there traditional approaches being usurped by self-service tools online and are wondering where their next career move will take them. Start looking at yourselves as the customer advocate and make sure everything you are doing advances your understanding of customer behavior and that you are able to translate that for your businesses or your clients. That will be where you add the most value and this is the key to loyalty.

Forrester Research features Ascentium among the top Interactive agencies

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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

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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.

High ROI Marketing Strategies for a Down Economy

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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.

Is Integrated Marketing the same as Integrating Marketing?

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The other day I found myself in a heated discussion about integrated marketing. On the one side, it was argued that integrated marketing is a decade old concept that was proven not to be either practical or particularly effective. The other camp argued that integrated marketing is a core element of anything we call marketing2.0 and regardless of name, is something that is essential for the future of marketing. Both sides of the debate have good arguments and I couldn’t find any fault with their logic, however I think both miss the point.

The future of marketing does not hinge on integrating messaging across multiple channels like we tried to do at the advent of the internet age. We’ve learned that different media and different mediums require unique messaging. Just because a TV ad is video, does not mean that it’s going to be a hit on YouTube. Traditional print copy losses most online readers before the first sentence is complete and anything that hints of advertising or hype will be shot down within any community.

On the other side, simply participating in every new social network like Twitter, Imeem or Boing Boing does not automatically mean great marketing. Companies still spend as much on Yellow Pages ads as they do on internet marketing and broadcast TV is still the biggest single line item in any marketing plan. They key is not trying to be everywhere, but trying to be in the right places, where the right customers are.

I started out by saying that both points of view are missing the point. It’s not that they are wrong, but I think the real meaning of integration in today’s marketing world should reflect solutions to the problems that are keeping CMOs up at night. The biggest struggle marketing has is not with customers, but with the rest of the company.

For decades, marketing departments have used their own metrics and their own milestones for success. Even as their methods and tools have become more sophisticated, most marketers still speak in terms of reach & frequency, opens, click-throughs and response rates. Those that do attempt to measure business metrics like ROI, tend to use implied or derived revenue data and quite often their formulas do not reflect basic understanding of finance principles.

And this lack of business rigor is reflected in the way other parts of the enterprise view marketing. From the CMO council to Forrester Research, there are multiple studies that say the same thing. Most CEOs do not believe that marketing can justify its expenditures, even if they know intrinsically there is value in what is being done. Few CFOs accept any numbers marketing presents as accurate and VPs of Sales tends to argue over the influence and therefore impact of marketing programs. In general, they assign the revenue to the one who closed the sale, not the one who found the lead.

The answer is the integration of marketing into the rest of the enterprise, allowing the CMO to take their rightful place as a business leader in the C suite. Like everything else in business, this integration has people, process and technology elements. From a people perspective, marketers have to become increasingly left brain thinkers. Identify themselves as business people, no matter how creative they may be and learn to look at everything they do by asking the question, does this advance the business? From a process point of view, organizations have to stop thinking in terms of the marketing funnel, the sales pipeline and customer service and understand and track the customer along the complete customer lifecycle continuum.

And finally, look to technology as the enabler of both people and process. Customer Relationship Management, or CRM, has got to come out of the Sales closet it normally hides in. If companies’ marketing, sales and customer service groups are not all using the same CRM application, or at least the same data, then they are bound to remain siloed in their approach to the customer. If the data collected from each customer touch point is not brought together and form the basis for a robust business intelligence solution, then each division will continue to report on its own metrics; campaigns, sales, incidents and not understand the value contribution of each interaction.

So, by integrating marketing into a closed loop environment, built upon a platform where all customer interaction is captured in a CRM system and then reported on and analyzed through the multiple lenses of a BI solution, companies will be able to understand their customers across time and behavior, as well as across media. The result will be achievement of integrated marketing through the integration of marketing.

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