Future trends in Digital strategy, Total Customer Engagement, CRM, eCRM and multichannel marketing
Friday, 20 November 2009
So, farewell then, the Revolution
It is, in my opinion, a huge shame. I've been involved in the magazine in one way or another – reader, writer, interviewee, critic, blogger – for a dozen years. I've seen it change and grow and mature since its earliest raison d'etre of providing a more client-friendly window on our industry than NMA's then-trade newsletter view.
We, that is my friends and colleagues in the industry, even put up with the doldrum years of that one awful front-cover photoshop template and remained loyal. It's a crying shame that ad revenues couldn't support the title... but it's also testament to the power of the digital revolution itself, which Revolution has so diligently reflected, that has led to the incorporation of marketing into the online. The digital universe, once so revolutionary, took over.
That the print edition is going is not so sad, except that it ends a vital period of reporting and advocacy that has now, quite inevitably and probably quite rightly, moved online. As with all changes like this though it leaves the hugely talented and engaging people behind it adrift. I hope that this talent doesn't go wasted or diluted. Gareth Jones, Andy McCormick and the rest of the team deserve congratulations, as do their predecessors, for providing an important and valued perspective on our industry, one that has been accessible, informative and fun.
So, farewell then. Revolution is dead. Long live the revolution.
Tuesday, 20 October 2009
Well, what a week
We then spent most of the rest of the weekend finalising our move into new offices while we wait for the brand new and very cool offices to be fitted out. How come? Well, we’ve just completed a deal to become part of Hasgrove-owned Amaze plc, the UK’s largest non-London digital agency. They’ve got 180 people in Manchester, Chester, Brussels - and pretty soon it’ll be 50 in London too. We’ve made Head of Client Services Emma Nicol and Planning Director Pete Anderson shareholders in recognition of the work they’ve done over the past couple of years while we’ve built up to this point, and it’s well-deserved.
We’ll continue to operate under the Underwired brand, and of course we own the eCRM.co.uk website and trade mark, so the pointy-head stuff we do, along with the lovely design work Jason’s team produces, will continue but with a bit more, well, momentum behind it.
So, a momentous time. And we’re extremely happy. You could say I'm flying.
Here lay the Wave
I think partly the way they’ve done the beta release is to blame. It seems that very few large communities of people that already correspond have been given a pool of invitations. So conversation has been very fragmented. The beauty of Wave, which is a kind of rolling discussion incorporating instant messaging, social media, productive wiki and email, can’t show itself clearly when there are six of you but not all on the same wavelength at the same time.
One of the features I found quite interesting is that you can incorporate a Wave into a webpage. In my case I hosted a Wave in my blog for a week, and people who were logged in to Wave could view the embedded Wave and people in the conversation could interact with it. My coding’s not up to much, so it didn’t look particularly elegant, but it’s a far cry from the basic comment field.
So I think that one day Wave could be awesome. While some of my colleagues didn’t see the attraction, I think it might become quite a revolutionary step. For example, imagine constructing a collaboratively-generated screenplay or feature article, where several people can be involved in different time zones, editing previous contributions and suggesting new, constantly honing and refining, fact-checking, editing and clarifying as you go along, until the final polished artefact is ready. On the other hand, I can see all sorts of mischief, and the experience of wiki, where attribution and defacement become important, may have to be reworked.
It’s not in itself particularly original - it is after all an agglomeration and blurring of the borders between a whole host of technologies that have been around for between 15 and 30 years - but it may take discussion itself to a whole new level.
Tuesday, 6 October 2009
They is no longer The Man, They is Us
And yet not a huge amount has changed, but there’s been a subtle shift. Online communities still grow, morph, die. People choose which stuff to consume and which stuff not to consume. They choose how and when to interact. They write, take part in places of play, and navigate their social networks.
They. Not you, Mr, Mrs, Miss and Ms Brand Marketer. The individual consumer. They control what they do, say, think, recommend. They control your reputation. They is no longer The Man, They is Us. So now the consumer is doing the building, and the static HTML or even the documentary email is old hat. These days people use XML-based channels, YouTube, Twitter and Digg, and so on - through the browser, IM app and phones. Forrester’s (then employee) Charlene Li set it out beautifully simply in the book (book!) Groundswell, which described a new generation of segments based on how integrated consumers are with social media content production, consumption, recommendation and storage. Li told of a revolution that has taken place under our noses but behind most marketers’ backs.
The future is, as it were, here. Which means that brands too have to start getting their hands dirty. Brands have to join in the social fun, make social gaffes, fix lapses in tact and establish a reputation. Today is when you have to start if you haven’t started already. Gone are the days when background repetition created any capital for brands - we’re in a future where immersion is the new rule.
Saturday, 3 October 2009
ECRM and the Art of Customer Retention
Interactive multimedia truly gave the power of self-selection to the consumer. It meant if we gave a consumer five choices, they’d (almost certainly) choose the option that appealed to their needs most. Slightly problematic in that getting CDs to enough potential customers was expensive and the media was fixed. No-one in marketing took it very seriously. Then the following year along came the world wide web, and the world changed in twelve months.
Marketers cottoned onto the opportunity - eventually - to engage customers in a dialogue driven by the customer herself. Websites became big business for forward-thinking clients and agencies like ours; getting people to the websites became the next challenge but again, tapping into elective channels made sense and worked in practice. In fact, the agency I run now started as a search engine optimisation (SEO) agency in 1996 as an offshoot to our web agency. And actually that leads me towards the problem marketers face at the moment, which in my view is crippling the advance of interactive, elective experiences that customers can enjoy and companies can make millions from. And they can, because some have seen how to solve the problem.
The issue is that in the years following the early pioneering experimentation, digital marketing has become siloed. When I last looked there were 3,500 companies claiming to build websites. SEO has become an industry in its own right - in fact, two industries: organic (natural) search optimisation and paid-for search, (PPC – pay-per-click). Web has become websites plus tactical microsites, often by different agencies. The DM agency probably has a microsite supporting a print campaign. The PR agency is looking after “reputation management”, though it might be subcontracting the Facebook page to a social media agency. Oh, and the online ad campaigns are being specified by the media buying company.
I’m sure it all made perfect sense at the time.
So here’s the situation most clients (except the really canny ones staffed by strategic thinkers) find themselves in today. A dozen agencies, some nested or subcontracted. Each of them doing what they’ve been told. And if they’re good, each one is trying extremely hard to improve on what they did last quarter, incrementally increasing click-throughs or eyeballs or impressions or recall by 3%.
Many of the really good ones will be coming to you with really great ideas for attracting new customers. Fantastic viral ideas coming from the ad agency. A really good creative hook with legs from the online agency that will reach new audiences and probably drive some extra traffic to the website too. And what with the e-commerce company annually improving the sales funnel, well, it’s an ever-improving world out there. But while all these bits and pieces are individually doing better than whatever they were doing before, they are also gradually losing touch with each other. It used to be that marketing marched to a single coherent beat, where the TV ad established the awareness and each other medium elaborated on the brand message. Yet that’s fragmented badly, and what we’re left with is a mess of tactical, competing, agency-income-motivated digital campaigns that have no backbone or strategy, and which often do more to confuse the customer than empower them.
It’s a situation we see all the time. And there is a simple way of getting out of it, though it takes will, vision and patience.
We need to go right back to the customer. The data is the key here. All of the various marketing activities I’ve described deliver data in fairly large quantities - data about who your customers are, how they behave, what they like, how many times they buy, how much they spend, how long they last, how quickly they churn and so on. Again, it’s probably in a variety of different places, but that doesn’t really matter. The first step is to find it all.
So, step one, find the data. Any eCRM agency worth its salt will be able to manage the aggregation of this data, manage its analysis, and come up with insights about your customers. These insights inform segmentation - behavioural, demographic, technographic; value (by whatever measures)-led, loyalty-led, influence. And segmentation tells you what you need to say to each of them at what time to increase their engagement and to increase sales... when McCain Foods did this, engagement rates with brand resistors went from 14% to 63% in just ten months.
So now we have a map of what needs to be said to whom and when. In its most basic form eCRM can easily be delivered by email. This might be augmented by microsites speaking and exchanging information with each segment. Supporting this you might want to extend forums or social media that allow customers to interact further with you, or each other. If you observe these closely enough you’ll find out what’s bothering customers - in fact they might show you how to segment them even further or what’s going to interest them in the future.
And suddenly (well, to be fair it might be three to twelve months) you have the kernel of a digital strategy. Followed through, the segmentation which came from all that disparate data can start delivering genuinely useful information that essentially becomes the foundation of a marketing strategy. Simply observing the success or failure of each strand of communication with a segment by watching the behaviour of the recipient, gives you the power to change the options you make available to her over time. It’s enormously powerful, and because all that is being done is observing response and making changes based on what is seen, the power really is back in the hands of the marketer, even if it appears that the whole machine is being driven by the customer.
And from this observation of what works and what doesn’t, what motivates or engages and what demotivates or disengages, comes the magic: very quickly we start to see which segments we want more of. And that means we know what to tell our agencies to do. They are suddenly working to your plan, not theirs, and your plan is driven by an eCRM strategy not an agency account handler’s desire to make themselves famous with an award-winning viral or a 0.002% increase in banner clicks. Time was that clients drove strategy, rather than herding agencies, and eCRM brings that time back, at long last.
Monday, 28 September 2009
Mixed bag of advertising that fails to build relationships
Barclays seems to have caught a great advertising team – two ads for two different products were clever and eye-catching. I liked the latest ads for some car marque, which seemed to offer three different cars depending on your budget but I can’t remember which brand; likewise the “chasing her metaphors” piggy bank ad again, amusing ad but can’t recall the brand. I loved the army ad detailing a strike on an insurgent gun, but on reflection felt underwhelmed when this turned out to be the chap’s career highlight (the army chap, not the insurgent chap). I really liked the Cadbury’s Fair Trade ad. Actually, it was a mixed bag. I’m very glad I can avoid it all with a PVR’s ffwd button.
None of it however has been designed to develop a relationship. Even the Cadbury’s one, which presumably is part of a series designed to give me a rounded sense of the brand new brand onion, felt stuck on – unrelated to the Gorilla or those other ones that didn’t work. I’d love to see advertising that deliberately led off-screen, not just to the shop but to a place where a relationship can flower.
I can’t remember the last time an ad told me to visit the website in a clear, beneficial way. Oh, apart from all those second-string insurance aggregator sites of course, which do so so risibly it’s more a distraction than marketing (“let’s grab the consumer’s attention, at any cost” we imagine the account guy saying, shortsightedly – smacking of desperation on the part of both client and agency). I’d love to work with an ad agency that had the confidence to work with a digital specialist to create a genuine journey. Meerkats and Army aside, they just don’t cross-refer – and the beauty of the modern customer journey is that it can and should be fluid, media savvy and engaging, not ephemeral, boorish and – in some cases thankfully – entirely negligent of brand recall.
Tuesday, 15 September 2009
Shame on you, eBay
So, eBay scrapes the bottom of the advertising barrel, with an online banner / MPU combination listing results for Patrick Swayze memorabilia including a 99p video of Dirty Dancing – available now on eBay UK. I do hate advertising. In fact, there seems to be very little to redeem it these days. Ever since our ad breaks were transformed into zippy topped and tailed bits on Sky+, I've not missed it one bit.
And on the few occasions recently when I've actually had to sit through advertisements on the telly I've been shocked at how bad it is. To whit, crass ads that seem to have been created by morons from cheap advertising agencies, with no hint of irony. Bad acting (Peter Jones, there's no excuse), bad editing, bad voiceovers, bad construction, bad branding... has nothing moved on since the 80s? I'm aghast.
Anyway, the dross and unforgivably tacky online aberrations like eBay's let the few redeeming campaigns stand out, simples.