Posts Tagged ‘ROI’

Driving Conversions is what it’s all about

Posted: April 22, 2013 in customer experience
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I recently published an article in Chief Marketer about driving conversions through increasing the relevancy of content entitled, Drive Conversions by Making Interactions More Relevant

Can CMOs and CIOs become good partners

Posted: March 16, 2011 in Uncategorized
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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.

A new advertising agency model?

Posted: December 17, 2010 in New Agency Model
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Current advertising agencies make revenue based on a service model charged by number of employees it takes to deliver an agreed scope of work. All IP, thinking and work an agency does on behalf of its clients belong to those clients. Agency long term value is based on reputation, a portfolio of clients’ work and knowledge residing in individuals who might or might not leave.

There is no current ability to build massive data storage populated with agency owned data regarding what’s important to people, how they interact and make decisions. There is no ability to break down the FTE heavy structure and process inherent in making money to action campaigns in 72 hours or less. There is no ability to scale beyond tens of clients. There is no ability to use data collection to normalize between channels and determine a predictability regarding where and how to best spend marketing funds.

Agencies today develop client rosters based on cultural fit, revenue limitations, geographic limitations, reputation. Agencies don’t identify specific categories and set out to become experts in these categories as a cable broadcaster might, because there is no way of amassing long category term IP.

Agencies do not build and curate influencer communities within specific categories with the purpose of creating a category network that is ripe to consume and proliferate publishing.

….. but what if an agency were to throw the rule books out, starting with the business model and organizational structure

Launching the Rainier Advisory Group

Posted: September 7, 2010 in Ascentium, Closed Loop Marketing, CMO, community marketing, Customer Engagment, customer lifetime value, enterprise marketing platform, integrated marketing, Marketing Strategy, online marketing suite, Rainier Advisory Group, SDMA, Strategy, web marketing
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After nearly 5 years, I’m leaving Ascentium and starting my own consultancy, Rainier Advisory Group specializing in helping companies navigate the complexity of the marketing technology landscape.

I’m very proud of the success I’ve had growing Ascentium from a small technology consulting firm into the 5th largest independent digital agency according to AdAge and being called out with the highest customer satisfaction scores in the country by Forrester Research in their 2009 Forrester Wave® of Top Interactive Agencies.

Now is the time to move on and focus on my real passion of mastering cross-channel customer experiences through the integration of the technologies that are helping transform the marketing landscape from search to analytics, lead management to CRM and everything in between. With the maturation of cloud-based services, today’s marketer is faced with a myriad of choices and almost no one to help navigate not only the applications and services themselves, but how they fit into an integrated cross-channel strategy, Forrester calls Digital Brand Orchestration.

I believe that my combination of executive experience on the client side for Lufthansa, T-Mobile and Gateway, agency consulting experience working with companies like Microsoft, Intel, Lexus, and Ford as well as start ups like Marketfish, Quasar, and Surveyanalytics as well as my thought leadership and speaking engagements for organizations like Forrester Research, the DMA, Digital Hollywood, Mirren New Business, The Integrated Marketing Conference and MarketMix, position me well to provide the strategic consulting services needed by leading companies, marketing service providers and advertising agencies.

Please feel free to reach out to me if you’d like more information or if you know of any firm in need of my services.
I will also be devoting time to my commitment to our industry in my capacity as past president of the Seattle Direct Marketing Association, incoming president of the Pacific Northwest Business Marketing Association chapter as well as lecturing on digital marketing at local institutes of higher learning.

Most of my contact information remains unchanged, with the exception that I can now be reached at john@rainierag.com or jkottcamp@gmail.com . Today I have also launched my new company website, www.rainierag.com . Farewells are always sad, but new beginnings are even more exciting. I continue to wish everyone at Ascentium continued success and I look forward to sharing new stories with each of you in the near future.

Digital Agencies are proving they’re ready to lead

Posted: November 13, 2009 in Ascentium, CMO, integrated marketing, Interactive Agency, Marketing, Marketing Strategy, SDMA, social media, social networking, Strategy
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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.

Social Media, forget the hype and forget the technology

Posted: August 26, 2009 in community marketing, Marketing, Marketing Strategy, SDMA, social media, social networking, User-generated content, Web 2.0
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There was a full article in the Seattle Times this morning about social media. It’s amazing that a major media outlet either just discovered social media as a topic or there wasn’t enough new news to fill the dwindling number of printed pages. But let’s not get on the subject of newspapers and why most journalists seem to be more afraid of social media than taking steps to become the leaders of it.

What I want to talk about is not newspapers and not about what social media is, isn’t or what its good for. I don’t know and I’m supposedly an expert on the subject for my agency Ascentium. What I do know is that I don’t want to see, hear, blog, tweet or otherwise spew about the definition of social media and how it’s going to change the world, or at least our way of thinking about the world. Been there, done that.

It’s time to focus on the reality, not the potential of social media. Look at what Twitter is being used for politically around the globe. See how the Huffington Post has already redefined journalism. And as marketers, let’s start talking about the work we’re at our companies or for our clients. Let’s see what is working and what isn’t. And let’s define success, not at the nebulous level of “building brand awareness” or “increasing reach”. Let’s apply real metrics to determine the ROI of a very broad array of activities, campaigns and applications that we lump under the category of social media.

As president of the SDMA, we created an editorial calendar of the coming year’s series of monthly events. The kickoff event, to be held on 09/09/09 at the Bellevue Hyatt was listed in our working calendar as social media. From there, we went about selecting a speaker(s). It was easy to find some really smart people who could pontificate on social media. In fact, last week the Seattle Social Media Club had a great presentation on “What the f**k is Social Media?”
But we’ve tried to set the bar higher. Our moderator, Blake Cahill, of Visible Technologies, a social media expert in his own right, reached out to his considerable network and looked for marketers who were actually using various social media techniques and asked them for examples of what is and isn’t working in the very real world of corporate marketing.

The result is a great panel representing brands including Alaska Airlines, Comcast, REI and PCC Natural Markets who are willing and able to talk about what they have learned about social media.

So if you’re interested in going beyond the hype and seeing what social media can really do when applied by top marketers, come join us on Sept. 9, 2009 at 5:30p at the Bellevue Hyatt for the kick off event of the season of the SDMA.

Welcome to a new season of the SDMA

Posted: August 21, 2009 in Ascentium, SDMA
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In addition to my role at Ascentium, I have been privileged to be elected president of the Seattle Direct Marketing Association, SDMA, and as we kick off our new 2009-2010 season of events I’d like to welcome back all our members, colleagues, friends and everyone that has an interest in the marketing profession.

We’re in the home stretch of summer. Our sub-baked brains are shifting from vacation to back to school, from playing hooky on a sunny Friday afternoon to getting the next proposal out the door. In other words, the fun’s over. But wait a second! Just because it’s no long 103 degrees outside, it doesn’t mean there’s nothing to look forward to. The SDMA is here and it’s time to kick off another great season of speakers, events, networking and the continuation of our exploration into the art and science of modern marketing.

Last year we debuted a new tagline for the SDMA, “thinking outside the mailbox” in recognition that direct marketing has evolved into integrated marketing. We’ve taken the expertise direct marketers have gained in the areas of targeting, segmentation, analytics and ROI and are applying it to email, online advertising, search and social media. We’re extending brands across multiple new channels like mobile, branded content and the Web. And all while remembering that traditional media and direct still make up the lion’s share of marketing budgets and are evolving just as much as the new media is coming on the scene.

This season, the SDMA is going to mix things up a bit. In response to our success last year in Bellevue, we’re going to host some events on the East side and some in Seattle. We’re going to experiment with different formats including thought leader interviews, competitor panels and bring you real-life case studies showing how companies are using new ideas as well as re-inventing established methods to produce tangible and measureable results for their businesses. For this year’s calendar, visit www.sdma.org/events

In addition to our monthly events, we are partnering with the PSAMA and the Social Media Club to produce the region’s premier marketing conference, MarketMix 2010, to be held on March 10, 2010, at the Bell Harbor Conference Center. Mark your calendars today.

If you haven’t checked us out in awhile, visit our website at http://www.sdma.org, our groups on Facebook and LinkedIn, or even better, join us for our season’s kick-off on Wednesday, September 9, 2009, 5:30-8:00p at The Bellevue Hyatt for our evening event, “Transforming your Marketing and Customer Relationships with Social Media – Real Tweets from Real Practioneers at Leading Northwest Firms,” with panelists from Alaska Airlines, REI, PCC and Comcast. To register, visit, http://www.sdma.org/events .

Looking forward to seeing you and having your participation in another great year for the SDMA and for the marketing profession in the Pacific Northwest.

On behalf of the entire SDMA board,

John P. Kottcamp, President

Market Researchers are the keymasters of loyalty

Posted: July 25, 2009 in Ascentium, Closed Loop Marketing, CMO, Customer Engagment, customer lifetime value, integrated marketing, Marketing Strategy, Strategy
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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.

Other agencies aren’t the real competition, IBM is

Posted: March 24, 2009 in Uncategorized
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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.

Is Integrated Marketing the same as Integrating Marketing?

Posted: August 26, 2008 in Closed Loop Marketing, CMO, Customer Engagment, customer lifetime value, integrated marketing, Marketing, Marketing Strategy, social networking, Strategy, User-generated content, Web 2.0
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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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