So you have a horde of demographic data, but do you really understand: Who is your customer? This question is not as easily answered as you think.
If you’ve written a marketing plan in the past 10 years or so, you’ve probably described your company’s target audience like lots of other marketing people do. And by that I mean things like “adults 55-65 who enjoy eclectic rock music and listen to Pandora” or “men 25-40 who like to run or bicycle 2x per week” or “CFO’s of businesses with annual sales between $15-$25 million.”
While these descriptions all follow the format taught in Marketing 101 to MBA classes in universities around the country, they’re unfortunately all nearly worthless because they provide almost no relevant information for making strategic decisions. Yes, it’s important to have this kind of information be part of the target audience description, but every year, innumerable marketing directors automatically write up plans with these kinds of empty descriptions of their target audiences. And every year, these same companies run around trying to figure out why they’re not really connecting with their customers.
Why demographics aren’t enough
First of all, your customers aren’t demographics. They’re not age ranges…or job titles…or geographical regions…or salary brackets. They’re human beings. It’s almost ridiculous to have to say that, but companies are constantly unable to remember this basic fact. Consequently, these so-call customer-centric organizations continue to roll out downright uninspiring messages to their audiences. “Got (fill-in the blank)?” Or “Do you like to garden? Then you’ll love GroundHog Tiller”? Or, “Kangaroo Jumpers are designed for the active adult outdoor workout enthusiast.” Or, “Springboard provides IT professionals and developers with the platform and tools needed for server administration, application extensibility, and interoperability.” While good money is spent in creating online sites, digital advertising, offline marketing materials and media placements, customers roll their eyes and shake their heads in disbelief (or worse, simply ignore the messages) because they know marketing drivel when they see it–just like you do–and they quickly move on to something more fascinating and relevant.
To sum it up, demographic information is good to have because it’s helpful to know something about the people you’re targeting and it gives you a good foundation to build our buyer personas on. But in today’s world, mere demographics 1) don’t tell you what these people’s pain points are, 2) they don’t tell you about their personal goals, and 3) they don’t tell you about interests and style. That’s why demographics just aren’t enough. Real-life people (i.e. your wife/husband, your mother/father, heck, even you) don’t view themselves as demographics. So as marketers, we shouldn’t view them that way, either.
Getting to know your customer
If it’s important to connect with your customers so that they take the time to listen to what you have to say, you have to stop pushing uninspired marketing clichés on them and instead focus on understanding who they really are, how they really think, and what’s really important to them. That soccer mom driving the crossover SUV with 2.5 kids? Well, her name is Lori. Yes, she goes to early morning workout classes at her fitness club, but do you know why she goes? She’s also on Facebook at least twice per day, but do you know why? Stop making assumptions (because you’ll probably be way off) and start asking questions. Then, when you start to understand, you can get real in the way you talk to Lori. (FYI, Lori goes to early morning workout classes because…she worries about heart disease as she ages since her aunt died of a heart attack at 51, and she’s on Facebook twice per day because…she’s responsible for the social media activities for her company. Probably not what you thought, right?)
Everyone sees the same person
So once you better understand what’s going on in the minds of your audience, you can do a few things to ensure that this information doesn’t just sit in a binder on shelf, but rather that it becomes an everyday part of how your marketing activities are created and put to work.
One example, and a personal favorite of mine, is to create a “customer persona” – an example of the person that would interact with your product or service – with a name, face, and look to help your team connect with your target audience in a more direct and insightful way. In order to achieve this, you need to recognize (or at least imagine) that prospect’s personal and professional interests, priorities, aspirations, fears, motivations, goals, pain points, etc. These factors will have a major influence over what catches their attention when it comes to solving a business issue. Personas concentrate on what a user does, what frustrates the user, and what gives the user satisfaction. A good persona is a narrative that describes a person’s typical day and experiences. In short, bringing the “user” to life helps you better understand what drives your user so you can build around that. (Note: There are numerous customer persona examples that you can source online to show you how it’s done.)
As a result of creating a customer persona, your team no longer has to try and hold an abstract or numeric customer profile in their heads. Nope. All they have to do is ask, “What would Lori think about this?” This simple but important change can bring about significant differences in the way a company considers its customers during decision-making processes.
So, let’s try this again: who is your customer?
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
As a partner in a thriving marketing firm that targets companies with $20-$100 million in annual sales, one of my responsibilities is that of business development. While I learn something in each conversation with people in marketing leadership positions, many times after I hang up the phone, I say to myself, “there’s another one who’s losing sales to their competitors!” Mainly that’s because these folks have adopted some misconception about marketing as the “truth” that they can’t and won’t let go of no matter what. So while they say they’d like their sales to be stronger, their year-over-year sales won’t change much or, in some cases, will decrease from one year to the next.
So, let’s do a quick run-through of 5 most common fallacies that I hear. Hopefully none of these sound as familiar to you as they do to me.
I can grow my sales and “share of pie” with a smaller budget than my competitors
When I hear this, it generally implies two things to me: 1) Either your competitors are wasting a big portion of their marketing budget on initiatives or messaging that doesn’t connect with the customers or, 2) your marketing partners are fantastic because they’re willing to work for less than the average market price in order to do the wonderful work they do…which I have a hard time believing is the case. Oh, and then let’s not forget about the inability of these companies to track how much money the competitor is actually (over) spending on marketing.
The reality is this: if your company is spending a good deal less than the competition, you’re probably not making any significant gains in market share. Yes, there might be a competitor that’s overspending, but my experience working with companies from the Fortune 100 to small mom-and-pops is that you don’t pose a serious competitive threat unless your marketing budget is in the same ballpark with your competition….it’s just one of those “marketing truths.”
Marketing’s role is to generate new business
You’ll get no argument from me that one of the jobs of marketing is to generate new business, directly or indirectly. But just as important, marketing’s role is to make existing customers come back for more, that is making customers loyal to the brand. Many businesses are so focused on attracting new customers that they tend to ignore – or even walk away from – the existing ones. Yes, new customers are constantly needed, but truly successful companies prosper on their ability to retain the customers they’ve already acquired. The reason is simple: finding new customers is expensive and time-consuming. Let the following research statistics wash over you….
New business is always good but don’t forget who’s paying the bills.
We’re looking to be more visible with our customers because it leads to better engagement
Reaching the right balance between quality and frequency of the message requires careful consideration. There is a common belief among some that the more we communicate with our customers, the more “engaged” they will become. In fact, not knowing when to “zip it” is a classic marketing mistake that too many marketing people make. If marketing is about building relationships with customers, over-marketing is the best way to kill the relationship and send the customer or prospect heading for the door. A social engagement study entitled “The Social Breakup” prepared by ExactTarget, provides clear evidence of what happens to customer relationships when the marketer comes on too strong:
Guess the biggest reason people break up with companies? (Drum roll)…Too much marketing. The study showed that:
In short, increasing the frequency of communication shouldn’t be your marketing goal. Constantly improving content quality should be.
We don’t need a marketing firm because we can do it in-house for less
It’s the #1 thing I hear the most. A survey conducted by American Express Canada shows that “84% of small business owners say branding is important to overall business success, but only 14% hire third-party experts to help with branding.” I am not surprised by the results, and I can only guess the reasons: agency expense, the desire to have full control over the creative process, poor prior experience with an agency, or possibly the ability to make changes faster on one’s own. So, instead of looking for an outside marketing partner, many companies decide to hire a “marketing person” who wears many hats: graphic designer, social media specialist, copywriter, etc. Let’s be honest, no marketer can be a specialist in everything, unless the company is willing to cut corners on how it presents itself to the world.
Now please understand, I’m not trying to bash the in-house marketing department as there are a lot of smart and talented people out there working for companies. Rather, my point is this: the right outside marketing partner will bring a focus to the marketing initiatives or project, resulting in faster execution time; will come in with an original point of view – more in line with how your customer will interpret the messaging; develop much fresher creative (no “vanilla” wallpaper stuff that gets passed over, and; deliver a much higher level of production quality. Try this on for size: open up 5 trade or consumer magazines and tag or cutout 10 ads that stop you in your tracks… ones that convey a strong value proposition, ones that you wish your firm had done! My completely biased but nevertheless absolutely accurate guess is that all 90% of those ads you clipped out were created by a marketing or advertising agency.
We’re looking for something beyond traditional marketing because that kind of advertising is dead
The internet is chock full of advice on how your company should abandon traditional “old school” communication methods and make the switch to online. It would seem like TV, print ads, billboards, and radio are dying and not worth considering in the overall communication strategy. Yet, research (and lots of it) say this is an incorrect assumption. I think we can agree that the best marketing communication strategy uses a mix of offline and online tactics to reach the target audience. (Do yourself a favor and visit www.marketingcharts.com and subscribe –it’s free. Here you’ll get daily research updates on a wide range of topics including how traditional channels are preferred over digital depending on the audience.)
While it’s true that more money is shifting towards digital, the traditional marketing channels are still heavily required in many business environments. In fact, when Google started getting serious competition, they started running…wait for it…TV ads! When Dollar Shave Club saw that their growth was limited by only online marketing, they started using those old, traditional channels that have in turn made them a rising star company. When there’s a product launch, a sale or just about any other occasion where you need to reach a mass audience quickly and effectively, there’s still no substitute for paid media…and even the dot-coms know it. Think about this, in 2014, the average cost of a 30-second Super Bowl ad was more than $4 million. No CEO or Marketing Director would ever approve such a budget without taking ROI into account, right?
So as I noted earlier, hopefully none of these sound familiar to you. But if on the other hand you’ve heard or said one of these things in the past, know that a lot of confusion, frustration and unrealistic expectations can be eliminated by seeing the world through a different set of lenses.
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
As we all know, Pinterest and Instagram have become staples on the social media scene. The right visuals (from photos to quotes to inspirational messages) have great appeal and serve as motivation for many. With that in mind, here are some interesting visuals coupled with some content concerning marketing issues that face marketing teams almost daily as they work towards creating the change in the way people use and interact with their company’s products or services. Short, sweet and fun. Click away! 
The average attention span today is roughly 9 seconds…like that of a goldfish. Nine seconds to communicate a message, earn a little bit of loyalty, build a little bit of trust so you can continue the conversation before your customer starts getting distracted! So what could you possibly say in that time or less to get someone’s attention? It starts with presenting your message in clever and unexpected ways. It grabs people’s attention and has them focusing on the message and not thinking about the other stuff that could come into their mind. They’re engaged and captivated. In doing so, it allows you to persuade them, get them to trust you, get them to believe you, get them to want to connect with you. A shift in perspective from speaking about yourself to speaking from the audience’s point of view can be remarkably effective. Witness a beautiful commercial for a British online content company featuring a blind man whose original cardboard sign talks about himself, “I’m blind. Please help.” But when a caring passer-by changes the words to be more audience-focused, something powerful happens. The symbolism is powerful. To read more, click here.
Social media as a pathway to sales is almost certainly not going to work to the degree you want. There…I said it. While social media can be a valuable marketing tool, it’s not magic and it cannot and won’t replace everything that came before it. There’s no quick success and very few programs break through. Coca-Cola says it can find no correlation between “buzz” on Twitter and actual unit sales. Nissan admits it has no idea if social media helps it shift cars. MasterCard can’t tie its social investment to revenues. Don’t take my word for this. Go online and do your own research and see for yourself. In fact, there remains little evidence social media does anything to boost brands’ bottom lines. So then why use social media at all? The reason is that it is an impactful vehicle for empowering advocacy and we know that’s extremely important for brand health and profitability. Social media, if done right, can capitalize on what brand equity your company has already built up. To read more, click here.
When was the last time you/your marketing team asked the question “I wonder what would happen if we ________.”Crazy ideas have changed the way we go about living our lives. Knowing this, why is it that many marketers still don’t trust the crazy idea when it shows up unexpectedly especially, since crazy ideas, not safe ideas, are the game changers that propel companies forward? In today’s competitive, me-too world, if your product isn’t a legitimate leader in a category, it’s certainly a far better choice to come up with a new value story around your own product or service rather than trying to compete price-wise on the value that was generated by a competitor. You might want to be thinking about a crazy idea that will create a new meaning around your brand. Embrace that mindset so much so that the next time an idea is presented by your marketing department and someone outside of that department says “That’s a crazy idea,” you’ll say, “Thanks, we love it as well!” To read more, click here.
If you want to have passionate customers and dedicated partners, you must first inspire strong responses. But as you attract fans, you’re also bound to get the critics or “Haters.” It’s OK to have some folks (not too many, though) who will not like your brand. The undeniable reality is that if you’re not eliciting a negative response from someone somewhere, then you’re probably not that fascinating to anyone. Think about it, even Apple has Haters as does Starbucks and it hasn’t hurt them. Alternatively, you have the advocates, evangelists, loyalist…the Lovers. They don’t just buy your product or service, they also accept price increases and forgive occasional “issues.” They’re loyal and not just buying your products for price or utility. In the middle are the Lukewarmers. They have a really bad habit of not caring. They won’t buy your product unless it’s the cheapest or most convenient option which means they’re only buying you until a cheaper or more convenient alternative comes around. In today’s marketplace, this middle ground is death!! Not caring is not buying. Not caring is inaction. The world is not changed by people who sort of care or don’t care at all. Stop focusing on the Lukewarmer. Start by having your marketing and advertising be imaginative, original and fresh. To read more, click here.
Having dealt with all sorts of companies and people, I believe the Number One reason for boring “vanilla” marketing messages is the result of trying to please all the people all the time. Fighting the desire to be all things to all people lets you: 1. Stand out from the herd; 2) Attract the like-minded; and 3) Create stronger connections. Vanilla brands might not have enemies, but they also don’t have passionate advocates whose enthusiasm spreads. In order to win the race, you can’t stand still. Vanilla marketing is standing still. To stand out, to be different, to be memorable, takes boldness. It takes being “a real Marketer”. So, however you go about it, stop defaulting to dishing out plain vanilla marketing and start scooping out interesting flavors (think “Cherry Garcia”; “Chubby Hubby”; or “Chunky Monkey”, etc.) that stand out and are uniquely your own. To read more, click here.
So there you have it. 5 visuals that speak to different marketing challenges and opportunities. Maybe these visuals will stick with you for awhile and even change the way that certain projects, campaigns and programs are developed and executed. Seeing is believing.
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
I was having lunch with a friend who is well-respected and recognized in the advertising industry (age of “Mad Men”), when we both started reciting well-known marketing/advertising quotes and how there are as relevant today as they were 40 to 60 years ago. Unfortunately, too many marketing director types immediately dismiss these pearls of marketing wisdom because they think “that was then and this is now.” The problem with that type of thinking is that these people are doomed to make the same mistakes over and over again because they don’t get one important fact: marketing has the same challenges as it did years ago which, in short, is the need to differentiate your message from competitors so people buy your product or do business with you. It’s we just have a lot more channels to contend with today.
So, here are five famous marketing/advertising quotes, with a few thoughts on how they relate to your efforts, whether you’re a social media manager, content marketer, or advertiser:
1. “The truth isn’t the truth until people believe you, and they can’t believe you if they don’t know what you’re saying, and they can’t know what you’re saying if they don’t listen to you, and they won’t listen to you if you’re not interesting, and you won’t be interesting until you do and say things imaginatively, originally, freshly.” – Bill Bernbach
My all-time favorite advertising/marketing quote because it really goes to the heart of getting your product or company’s message recognized and acted upon. If you believe what Mr. Bernbach says, and frankly, how can you not, then the whole idea of developing uninspiring, status-quo, “beige” marketing messaging should never be settled for again…ever. Why put forth the effort of creating something that becomes largely invisible to your audience? This quote goes hand in hand with another Bernbach quote: “You can say the right thing about a product and nobody will listen. You’ve got to say it in such a way that people will feel it in their gut. Because if they don’t feel it, nothing will happen.”
2. “When you reach for the stars you might not quite get one, but you won’t come up with a handful of mud either.” – Leo Burnett
I’ve worked both on the agency side as well as the client side and to this date, I’m still shocked at how often the client thinks so little about the growth opportunities for their product or service, while the agency thinks that the product or service is just the “cat’s meow.” Don’t be an “Eeyore-type.” Think big! While there’s also something to be said for having realistic expectations about what you can achieve, there’s nothing wrong with having big dreams and aiming to make them a reality. If you aim a little higher you might just find yourself achieving things that you might not have thought possible.
3. “Why keep a dog and bark yourself?” – David Ogilvy
If you’ve decided that working with a marketing firm is going to help you communicate your value proposition in ways and forms that you otherwise might not have come up with, then believe in the abilities of those you’ve entrusted to do this and step away from playing copywriter or art director. Yes, you’ll know your product much better than the agency in the same way the agency knows how to communicate it to the marketplace much better than you. In short, collaborating is a good thing. Dictating to your marketing partner, well, that’s not how to get the best work done.
4. “I’d rather apologize than to be so timid as to never try and do anything smart or brave.” – Lee Clow
Lee, who created legendary advertising ranging from Apple Computer’s “Think Different” to the Energizer Bunny to Taco Bell’s Chihuahua to California Cooler, knows of which he speaks. The reason these brands became megabrands is because they recognized good work and weren’t afraid, yes, unafraid, to put it out there for the world to embrace. They rejected the status quo. While your company might not ever become a megabrand, it certainly has in it the ability to fascinate your audience more than it does now and in doing so make your competitors say “Why didn’t we think of that!”
5. “On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent eighty cents out of your dollar.” – David Ogilvy
The headline or title of your ad, blog post, collateral piece, Twitter post, YouTube video, etc., is the most effective way to get people to give you the 8 seconds of attention that you want before the reader decides to move on to something else. In short, the purpose of your headline is to get people to read your first line. The purpose of your opening line is to get people to read the next one. If you don’t embrace – and more importantly, implement – this principle, you’re going to miss out on a lot of readers. Employ headlines that stop the prospective customer. Don’t let it be anything but scintillating.
“The consumer isn’t a moron; she is your wife.” – David Ogilvy
“Rules are what the artist breaks; the memorable never emerged from a formula.” – Bill Bernbach
“Creativity may well be the last legal unfair competitive advantage we can take to run over the competition.” – Dave Trott
“Stopping advertising to save money is like stopping your watch to save time.” – Henry Ford
“Don’t tell me how good you make it; tell me how good it makes me when I use it.” – Leo Burnett
So take these inspirational quotes to heart and make your advertising and marketing ancestors proud! If you want your brand and products to get more noticed in today’s media-saturated world, you might not have to look any further than the original Mad Men and marketing legends. Their legends for a reason!
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
As I write this, my house is in complete disarray. We have a contractor tearing up my girls’ old bedrooms and converting them into a guestroom and an art studio for my wife. It isn’t pretty…but soon will be. As I walk past the tarp and power tools and stepladders, I’m so appreciative that there are people whom I can call on who know how to do this with an assured and desirable outcome. I use experts to prepare my taxes, to check under my engine, to tell me my cholesterol is too high. I leave the do-it-yourself projects to things that have very low consequences if I screw it up.
Marketing is not a low-consequence endeavor. If it doesn’t succeed, company fortunes and employee livelihoods are at risk. And yet, for too many companies, marketing continues to be a do-it-yourself project.
It doesn’t take an expert to see the results of this by simply flipping through the pages of any newspaper or magazine. Home-made ads are usually the ones you ignore, are plainly designed (or far worse) without style or a fresh point of view. The same goes for websites, Facebook pages, direct mail, radio commercials and company brochures.
D-I-Y is pervasive – but hardly ever persuasive!
We get inquiries all the time from businesses who have been creating their home-made ads and realize that the outcomes haven’t been what they’d wish for. But just as quickly, they pull back, fearful of relinquishing control and suffering sticker shock when they compare the cost of their D-I-Y efforts to professional services. What they’re missing is that by spending money for professional objectivity, expertise and talent, they dramatically increase the chances of their marketing actually having serious bottom-line impact.
The results of making the leap from D-I-Y to seeking out professional help can be dramatic. I’ve seen countless times sizable changes in traffic, sales and inquiries that resulted from putting the marketing in the hands of experts who excel in that craft. That’s how after 20 years, some businesses become overnight successes!
And by “experts,” I’m not talking about letting the shop that designed your banners or flyers design an ad. They’re experts in quick print projects. They’re not a marketing firm or an advertising agency whose portfolio of work comes with recognizable brands; as a result they don’t know how to help you build a long-term competitive position in the marketplace. Nor am I talking about brother Bernie’s kid who took two semesters of computer graphics and makes rock band t-shirt designs.
Every town has ad agencies and marketing firms who can provide you the ideal strategic guidance and talent required to make a difference. As you know, they come in just about every flavor, from one-man shops to multi-floor mega-agencies. Selecting the right company is a matter of chemistry, portfolio, history of success and their desire to win your business. It’s no different than choosing an accountant, contractor or garage mechanic. Price is a factor, but should never be the deciding factor – any more than seeking out the cheapest physician when you’re worried about internal bleeding. (Remember, it’s your company’s life on the line.)
Here are some tips in selecting a marketing provider (or better yet, a marketing partner!):
Just remember, success isn’t about your being able to do everything or know everything. It’s about being able to find the very best resources to complement what you do and know.
That’s why I know when to run to Home Depot myself and when to call on the guys who are ripping out the girls’ closets right about now.
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
“Life can only be understood backwards; but it must be lived forwards.” – Soren Kierkegaard
The last quarter of 2013 is almost history and as we stand poised to welcome 2014 in just 50 days from today, we hope for a future that is successful, rewarding and where dreams will be realized. Having seen the start of more than a few “new business years” during my career, I’ve learned that you can do one of two things in preparation for the coming year. You can yet again try to create a brand new marketing strategy for the coming year or you can pause, look back and do some serious reflecting, resolving to change, or improve some aspect about how you will initiate your future marketing campaigns. For some people, looking back over the past year may be something better left in the rearview mirror; on the other hand, burying your head in the sand can be seen as the primary ingredient in a recipe for another disappointing year…and you know how much the CEO/President/Owner/ Founder loves that kind of thinking and pending poor results. So before one celebrates the dawn of a new year…take time to ask yourself what are you going to do to change? What does success in 2014 look like to you and your executive management team?
Speaking for myself and our firm, the end of each year is met with a healthy dose of optimism for the coming year. We see 2014 through a lens of hopefulness, that things will indeed get better. Is that just us or will you and your organization also view the coming year with a level of anticipation that you haven’t had for a few years? Hey, it’s been tough for most everyone out there but let’s remember that at least a few organizations — perhaps your own competitors — have fared better than most despite these trying times. So what have they done to plot a course for a more optimistic and profitable path for success in 2014?
Depending on marketplace factors coupled with how well you were able to strategically position and market your company, the past year was either seen as a success or another year of disappointment. Success if you were able to grow your share of the proverbial pie (maybe at the expense of your competitors) or be sufficiently positioned to stay in business to fight the fight for another year. Or disappointment if things didn’t turn out so well because of…(you can fill in the blank). The question that begs to be asked here is, how much of last year’s success or disappointment was because of something you had no control over, such as good luck or bad luck, and how much was because of something you did or didn’t do given how the marketplace presented itself? I’ve found through personal experience this is the time to be totally honest with yourself. As the quote goes: “Being entirely honest with oneself is a good exercise.” – Sigmund Freud
Hey, I’m all for a bit of luck but you probably don’t want to continue betting future success on lucky things happening in the coming year. With this in mind, here are a few questions to ask yourself as thought starters as you begin the process of looking in the rearview mirror to last year and through your windshield to the next:
As marketers, one thing we know for sure is that change will not stop in 2014. The economy will continue to shift on us —hopefully with less drama. But by reflecting back on 2013, taking control of your marketing activities rather than being tossed around by the waves in the marketplace, along with thinking optimistically about what 2014 can hold, 2014 might actually be a year worth celebrating. It will be for us and hopefully will be for you as well.
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
Businesses everywhere are searching with ever-increasing frenzy for the wonder drug that’s going to help their businesses do more sales. A few years ago it was search engine optimization. Today it’s social media marketing. My take on this is to do your company a favor and save your money because using social media as a pathway to sales is almost certainly not going to work to the degree you want. What? Heresy you say?
You see, while social media can be a valuable marketing tool, it’s not magic, it is not a miracle, and it cannot and won’t replace everything that came before it. By itself, social media doesn’t work well. I realize what I’m saying is not likely to be well-received, especially with the hundreds of people who have set themselves up as social media experts over the last year. I can understand why people think social media will cure everything, but I challenge anybody reading this to produce a real success story that has led to an actual increase in sales.
Just take a look at the top brands on Facebook (www.fanpagelist.com/category/brands) to see which brands people Like and Follow on Facebook and Twitter respectively. It’s hard not to be amazed. The #20 brand (Skittles) has more fans than there are people who live in Texas! Yup…Texas. Wow! Who needs paid media when you can reach a mass audience for free? Surely that’s an opportunity just too good to miss, right? Surely it makes sense to place a chunk of your limited and stretched marketing budget on a social media expert who promises to get your message out there so that the profits will roll in. Right?
Well, hold on for a reality check. One significant fact is that most of the top social brands continue to invest heavily in traditional media. Coke is near the top of the top brands on Facebook with more than 70 million followers. WalMart has over 30 million. The route to social media success, it seems, runs through traditional channels. Even the exceptions like YouTube and Starbucks are worth looking at. They obviously didn’t grow into superstar brands using Facebook and Twitter but rather use social media to capitalize on brand equity they have already built-up. In fact, when Google started getting serious competition, they started running TV ads. When there’s a product launch, a sale or just about any other occasion where you need to reach a mass audience quickly and effectively, there’s still no substitute for paid media…and the dot com’s know it.
Social media is a long, hard row to hoe. There’s no quick success and very few programs break through. Ask any company in the country and they’ll tell you they have some kind of social media program in place. Some of the more active companies write a few blog posts a week; reply to comments and questions on a daily basis; and update their Twitter and Facebook feeds repeatedly. A tiny, tiny proportion of them are having anything that resembles significant impact. Fact is, Coca-Cola says it can find no correlation between “buzz” on Twitter and actual unit sales. Auto manufacturer Nissan admits it has no idea if social media helps it shift cars. MasterCard can’t tie its social investment to revenues. In fact, there remains little evidence social media does anything to boost brands’ bottom lines.
Our firm’s experience has been pretty much the same. Although LinkedIn groups were helpful in the beginning, Facebook and Twitter were almost useless for the first year. It took awhile to build a following and learn how to develop it before we saw any benefits that justified the effort.
Oh, and let’s not forget about that group of mysterious online people out there that supposedly hold all the cards … the “Influentials.” Tap into them and they’ll disperse your message to the masses, or so some would have us believe. The fact is that in-depth research into the matter finds this whole idea completely baseless. Brands like Apple, Harley Davidson and Trader Joes, for instance, have been able to build an army of passionate followers without an “influencers” strategy.
That doesn’t mean that influence doesn’t exist. It does. TV show host Oprah Winfrey is very influential as doctors are when it comes to health issues, clergy for spiritual issues and so on. However, there’s nothing mysterious about them. Marketers have long used celebrity endorsements, trade marketing and community outreach where appropriate. The truth is that brands are not built by influential people, but by influential ideas. The problem is that so called “influencers” aren’t that much more influential than anybody else. Don’t take my word for this. Go online and do your own research and see for yourself.
Again, social media by itself is not a great way to build a brand. You’re just inserting yourself into an ocean of jumbled voices and are unlikely to stand out. Marketers like to complain about the clutter in traditional media, but in social media it’s so much more cluttered.
So then why use social media at all? The reason is that it is an impactful vehicle for empowering advocacy and we know that’s extremely important for brand health and profitability. Social media, if done right, can capitalize on what brand equity your company has already built up.
So when I hear social media “experts” who make outrageous claims, who state misleading research, who use everything from stories to rumors to masquerade as facts, whose bias renders them short of perspective, and who completely dismiss the power of ‘traditional’ advertising… they’re ONLY, ONLY, voicing their opinion and not “showing me the beef.”
While social media is a vitally important component of an overall effort, it’s no replacement for sound marketing principles.
A few weeks ago, I was faced with needing to find a new dentist. So, the search began and the more I looked around, the more it showed just how many touchpoints came into play prior to – and after – a selection being made.
As we know, customers experience your brand in numerous ways and each of these touchpoints molds the customer’s impression of your company’s brand. If the brand is a promise you make, then the customer experience is the fulfillment of that promise. The customer experience can’t be left to chance. It has to consistently reinforce the brand promise across every customer touchpoint or the value of the brand itself is at risk.
So, after thinking about what your brand stands for and what sets it apart, it’s time to look outward. After all, if a brand is built and nobody hears it, does it make a sound? In not-so-distant marketing past, reaching consumers meant connecting through just a few channels: a catalog, a radio spot, a store visit, a customer service line, a salesperson…You get the idea. However, the number of channels for reaching customers has exploded in recent years. Think about it: when was the last time you made a major (or even not-so-major) purchase decision, personal or for business, whether a product or service, through a single channel? In fact, it’s more likely that your purchasing decision was made after being reached through a variety of interconnected touchpoints, from social media, to word-of-mouth, to advertising messaging, to conducting research online, to comparison shopping in the store.
Despite the desire to “silo” marketing channels, they’re far more effectively used together than individually. In a Forrester’s research report, it was noted that 33% of new customers involve two or more “trackable touchpoints,” and nearly 50% of repeat customers visit three or more “trackable touchpoints.” And despite the fact that nearly a 50% of the surveyed people believed that social media channels are a great place to discover new products, less than 1% of sales resulted directly from a social media referral. Online search (i.e., Google) and email were much more effective at closing a sale.
That said, your ultimate goal is to have each touchpoint reinforce and fulfill your marketplace promise. The best way to do this effectively is to look at each of your marketing, selling, and servicing processes which then allows you to create a simple touchpoint chart or map that defines your customers’ experiences with your brand.
Keeping this in mind, let’s use the process in looking for a new dentist:
That said, all touchpoints are not created equal. Some will naturally play a larger role in determining your company’s overall customer experience. To determine the touchpoints driving your customers’ overall experience, your organization can use a wide array of techniques ranging from quantitative research to institutional knowledge.
Yes, it’s simple….almost absurdly simple. But stepping into consumers’ shoes is an exercise absolutely too many executives neglect when marketing. We forget to become our own customers–with real, day-to-day concerns–and in the process, we lose sight of the most valuable touchpoint opportunities. Each one is a chance to present your brand and what you stand for.
In other words, having a more refined sense of “touch” has a big impact on how your prospects feel.
Imagine if you had some magical warning sound that alerted you before you made a misjudgment or a social faux pas. You know, like you’re about to bet on a bad hand and, HONK!, so you pull back your bet just in time. Or you’re about to give a future employer one of those cool “street” handshakes and, HONK!”, you think better of it. There’s a clever commercial for the Nissan Altima that plays out this funny notion as it promotes a cool new feature on the car: a warning honk that alerts you before you over-inflate your tires.
[youtube http://www.youtube.com/watch?v=V9xFgyv8BJI]
Now admittedly, we’ve all managed this long without the benefit of an automatic over-inflation warning, but still, it’s pretty cool. And it dramatizes a point that as a marketer you should be asking yourself: What’s the cool feature you have to sell? What do you produce, offer or do that excites your audience and makes them think “Wow!”
This is a pretty ho-hum world we live in and we’ve all seen ads, commercials, websites and Facebook pages up the wazoo. So the challenge of breaking through today means finding the one or two out-of-the-ordinary things people don’t expect or don’t know about you that fascinates them. We all know that to be the all important “Wow Factor.”
In your specific industry, you already know what the baseline of expectations is (quality product, made from quality materials/ingredients, great customer service, affordable prices). That’s just the opening ante that anyone in your business must provide. But where is the Wow that you alone can talk about? That one thing, or series of things, that is not merely unique but deserves an exclamation point in the eyes of your customer.
In books such as Raving Fans: A Revolutionary Approach To Customer Service, or Purple Cow: Transform Your Business by Being Remarkable, the authors write about the need to be remarkable or else become invisible. In your marketing, the same rule applies, that you must find the Wow Factor and express it in a fresh and unexpected manner so that it excites the audience and sets you in a league all your own. That way, it grabs people’s attention and has them focusing on the message and not thinking about the other stuff that might come into their minds. They’re engaged…captivated.
In doing so, you start connecting with your audience on a more intimate level, and that better allows you to persuade them, get them to trust you, get them to believe you, and get them to want to buy from you. So when your competitor tries to pull them away, they’ll stay loyal to you.
Back to the example of the Nissan Altima, the commercial demonstrates that promoting one small but really interesting feature is better than loads of features or bland generalities. That nugget of marketing gold for you might exist in one “small” aspect of your operation but demonstrates everything holographically about the way you do business. Whether it’s some unique characteristic about the what makes up the product (i.e., it doesn’t rust…even when submerged in salt water) or a particular service that you alone are offering (i.e., you’ll return every inquiry within 2 hours), it just needs to be a Wow. Anything short of Wow, whatever it is, will be background noise and nothing more. And if it’s a Wow, no matter how small it is, your marketing can make it big.
It’s time to do some corporate detective work and discover – or develop – your own Wow Factor.
And hey, did I mention the marketing director’s daughter who (HONK!!!!) … oh, never mind.
The year is 1913. The automobile is more than a novelty by this time. It is here to stay, and already, in the big cities, cars are beginning to outnumber horses on the major thoroughfares. Every young and growing family of any means has one of these contraptions. And the Ford Motor Company is pumping these babies out as fast as his factory will allow. In fact, if you’re Henry Ford, in 1913, you can’t imagine that ANYONE would want to be without a car, given its obvious speed, convenience and ability to vastly improve commerce.
But that same year, anyone who is over 50 has grown up with the horse and buggy and they are far from abandoning the most dependable and affordable form of transportation there is. Out in the countryside, they’re even more locked in to the old ways. Of course, they’re all a dying breed – literally – and one day, maybe in another decade or two, Mr. Ford will be right. But in the meantime, it still pays to be a blacksmith.
The year is 2013. Social Media is more than a novelty. And the digital universe will continue to play a growing role in how one makes choices in every area. But there’s a market divide here as well: those under 50 who, growing up, depended on television and now the Internet as their major information sources, and those over 50 who grew up with newspapers, books and encyclopedias, news magazines, radio and eight channels of TV to inform their world view. Those gray-haired Baby Boomers and pre-Boomers aren’t ready to give up the old medium forms or use the full potential of Internet the way their younger counterparts are. They still rely on traditional media and the power of face-to-face relationships to form their opinions. It’s how they’re hard-wired, even though many Boomers and older seniors may have Facebook accounts and smart phones.
For the visionary marketer under the age of 50, little wonder that he or she sees the future the way Henry Ford did in 1913. Soon, EVERYBODY will be wired, interactive, and engaged in the multiplicity of online touch points.
But whoa! If you’re reaching buyers over 50, which is the absolutely dominant market for health care, retirement living, destination travel, hospice care and funeral services, it still pays to know how to shoe horses!
I spoke last week to a senior services industry group, most of whom were Boomers or older, and they were very clear on the fact that for the next decade at least, Boomers and the older generations will remain the primary target audience. In fact, it was fascinating to note how many of these industry professionals struggled to understand how to use Facebook. Well, they’re over 50, just like their buyers!
If you’re under 50, you might chuckle at these old codgers and say their ways are fast coming to a close. But do remember, if you’re selling anything to Baby Boomers and older, these old-school marketers are more on-target than you are.
Young emerging marketing directors need to know how to employ the technological and social changes that are underway. But if you’re marketing to Boomers and older, automotively speaking, this is still 1913, not 1930. The changes that should be happening right now aren’t so much about how to use Facebook and Twitter but how to speak to the Baby Boomer better, understand their culture better, speak their language better and show up where they are. That means more relevant branding, more choices of products and services, adroit use of surprise, humor and respectful irreverence in marketing, and the avoidance of anything that reeks of clichés and stock or traditional messages.
Visionary thinking is wonderful, but while you’re looking well down the path, it pays to watch where your very next step will be as well.