REIMAGINEMARKETING
FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
Customer relationships
REIMAGINE MARKETING 1 "Trust is the glue of life." -Stephen Covey
2 REIMAGINE MARKETING "Trust is the glue of life." -Stephen Covey
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DEEP DIVE Explore these informational and educational articles written to provide applicable knowledge to help improve your marketing.
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BRIEFS Briefs provide an overview of important FINANCE and emerging PEOPLE marketing topics. STRATEGY CREATIVE BYTES 38 MEDIA Bytes offer a quick glance at some ANALYTICS new data, insights, and ideas.
4 REIMAGINE MARKETING 8 CUSTOMER RELATIONSHIP microsoft MANAGEMENT Customer Relationship Management in the Age of the Customer. 12 uFAQ: THE UN-FREQUENTLY ASKED QUESTIONS Answers to the questions you’ve always had but never wanted to ask. 16 INTERVIEW: JEFF MARCOUX Jeff Marcoux, CMO Lead of Microsoft 52 Worldwide Enterprise Marketing, shares his thoughts on marketing and customer relationships. DEEP DIVE 20 VERSUS: SOCIAL VS SEARCH Explore these informational and educational articles SHOWDOWN written to provide applicable knowledge to help As social media sites and search engines improve your marketing. fight for customers, we compare them to show you how to get the greatest return from each. 22 EMERGING IDEAS Explore how 3D printing, Bitcoins, and :60 smart materials are shaking up industries. 54 CUSTOM TAILORED Custom tailor a campaign. Target the right people with the right message at the right place at the right time. 74 THE SCIENCE OF CUSTOMER RELATIONSHIPS See how insights from the science world can help you build better relationships with your customers. 82 FAILURE TO LAUNCH Avoid these CRM implementation and system failures. Learn how to come in on time and on budget.
REIMAGINE MARKETING 5 RELATIONSHIP MANAGEMENT Customer Relationship Management in the Age of the Customer is causing businesses to evolve their customer experiences.
ustomer relationship management (CRM) is a business strategy for optimizing marketing, sales, and customer service activities to attract new and C retain existing customers. As access to information, social media, and mobility have created a new breed 243% of customers, companies must evolve their CRM strategies, techniques, and technologies to achieve a new panoramic view of Average ROI from using their customers. Through this evolution, it is possible to improve Microsoft Dynamics CRM interactions with customers in ways that maximize top line (Forrester Research, 2011) revenue and bottom line profitability.
6 REIMAGINE MARKETING Want to learn more? Visit Microsoft.com/Marketing and download the complete white paper on Customer Relationship Management in the Age of the Customer.
MANAGEMENT The age of the customers will return year performance of Disruptive customer or turn to a competitor companies who were technologies We’ve moved from – is a deliberate ranked as leaders or The Age of the the Age of Information strategy for every laggards in customer Customer is enabled to the Age of the business organization. experience. The by technologies that Customer. Consumers And while all leaders’ returns were provide customers have more options businesses will say 128% higher than with more choices and than ever before, with they put customers that of the laggards, capabilities than they information on each first, it’s those who and 27% higher have ever had before. choice available at are proactive in than the S&P 500. These technologies their fingertips. It has improving customer Delivering leading are changing the way become paramount for experiences that will customer experiences customers interact brands to ensure that find much greater allows organizations with brands and customer experience success. In 2012, to dramatically consequently, the way – the single greatest Watermark Consulting outperform the brands interact with predictor of whether looked at the five- market. customers. They are
REIMAGINE MARKETING 7 also extremely interconnected, even mean that the mobile Create a single view of the a new challenge for brands experience is only an accessory customer looking to deliver a unified and to the experiences happening While creating a panoramic, consistent story across multiple around it and not “the single view of a customer isn’t channels. experience” within itself. Mobility a new concept, it has previously offers new opportunities beyond been focused on analytics. Social networking mobile websites and apps. CRM now operationalizes that Social networks have Organizations that keep this in single view through technology empowered consumers by mind and use the opportunity solutions that collect data giving them a voice in a way to refocus and revitalize the and use predictive techniques they’ve never had before. These customer experience will reap to determine which offers platforms are always on, and the the greatest benefits. to make to which customers speed of feedback has raised and segments. These tools customer expectations when What today’s customer wants help brands align digital and engaging with brands on social Today’s armed-with-information offline marketing; create networks. Furthermore, they customer seeks three things demand through personalized, provide a quantifiable social from their experience. First is automated, and timely proof that can add or detract personalization. Customers communications that are built value from a brand. Social media increasingly determine how they upon real time data; and provide and content management want to be marketed to, sold deeper insights by organizing tools can help brands manage to, and served. Secondly, they data across and beyond the the speed, volume, and want a seamless experience customer journey. collaboration needed for regardless of time, location, or meaningful engagement on device. Lastly, they want a unique Adapting to the new journey social networks, but first, it is engagement that delivers an A customer-centric approach important that these social exceptional experience and a is a crucial starting point for efforts are aligned with the great sense of empowerment organizations seeking growth in larger brand strategy and and convenience. In summary, their marketing-related business story that’s occurring across all putting the customer at the strategies. The importance of customer touch points. heart of the business means this process in facilitating CRM delivering customer experiences cannot be overstated. Do not Mobility that are personal, seamless, and make the mistake of believing Mobile devices are rapidly differentiated. that your own customer changing how and where development lifecycles reflect customers access information the way all customers perceive about brands and products, the purchasing process, which bringing a new level of typically follows a cycle of immediacy and ubiquity to ENGAGE TRANSACT engagement, transaction, brand interactions. When fulfillment,and service. When developing mobile experiences, thoughtfully implemented it is important to consider both with a focus on optimizing how the information is being customer experiences, CRM displayed on a smaller screen can help organizations increase as well as the user intent and SERVICE FULFILL productivity, provide superior context within which they are service, and implement effective using their devices. This may marketing communications.
8 REIMAGINE MARKETING CRM UFAQ INTERVIEW VERSUS EMERGING IDEAS AWARENESS ENGAGE INTEREST DESIRE TRANSACT ACTION Pre-Purchase
Post-Purchase PURCHASE FULFILL USAGE POST-PURCHASE NON-USE DISSONANCE EVALUATION SERVICE
SATISFACTION COMPLIANT BEHAVIOR
PRODUCT DISPOSAL CUSTOMER JOURNEY JOURNEY CUSTOMER Age of the Customer , Age of the customer journey is becoming increasingly complex. Consumers interact with
INCREASED USE COMMITTED REPEAT SWITCHED DISCONTINUED CUSTOMER BRANDS USE In the brands through a growing number of touch points and through a two-way dialogue that hasn’t existed previously. existed hasn’t that dialogue two-way a through and points touch of number growing a through brands REIMAGINE MARKETING 9 uFAQ Answers to the questions you’ve always wanted to ask.
10 REIMAGINE MARKETING UNFREQUENTLY ASKED QUESTIONS What is transmedia story- ages, video, and audio mes- mary of the seven main re- telling? sages between cell phone us- quirements: Transmedia storytelling is a ers. It has become popular for concept whose roots can be a few reasons. First, compared 1) Don’t use false or mislead- traced back to the 1970s, but to most carrier SMS plans, it ing header information, in- it has surged into the main- is inexpensive. The app is free cluding who the email is from. stream in the last few years. to use for the first year and Transmedia storytelling is a then $.99 a year after that. 2) Don’t use deceptive subject technique where a story is Second, it is cross-platform. lines. told across time using mul- It doesn’t matter if you’re on tiple platforms or formats. It a Windows Phone, iPhone, or 3) Clearly identify the mes- requires unique content for Android. Third, it works inter- sage as an advertisement. different channels. This con- nationally for no extra cost. tent is linked like a puzzle and Users can send messages 4) Include your physical ad- synchronized to create a sin- between countries, and even dress in the message. gular, unified experience. if you don’t have cell phone service in another country, as 5) Include clear and simple in- Unlike more traditional long as you’re connected to structions on how to opt-out cross-platform media expe- WiFi, you can still send mes- of receiving future messages. riences which may replicate sages through WhatsApp. content or have content that 6) Honor all opt-out requests exists on one platform inde- The application currently has promptly, within 10 business pendent of the others, trans- around 450 million active us- days of receiving the request. media stories are a sum of ers worldwide. The global au- their different parts and all dience size is one of the rea- 7) Monitor what others are parts are required, often in sons Facebook is said to have doing on your behalf. You are sequence, to complete the made the acquisition. The still legally responsible, even if experience. app currently doesn’t include you hire another company to advertising, Facebook’s main handle your email for you. Transmedia storytelling is a revenue model, and they fully participatory experience claim it will remain that way. Learn more about CAN-SPAM where the audience becomes Time will tell what Facebook’s at business.ftc.gov. a stakeholder in the process. plan is for the application and It is also very aligned with whether or not it will pay off. Transmedia how we naturally share and spread stories in our person- storytelling al lives. For these reasons, What is CAN-SPAM? brands have started to ex- CAN-SPAM, short for the is a fully plore this technique for shar- Controlling the Assault of ing brand stories. Non-Solicited Pornography participatory And Marketing Act of 2003, experience. What is WhatsApp? sets the rules for commercial In one of the most talked emails, including penalties What is a CMS (content about major tech acquisitions for violations. The laws apply management system)? in a while, Facebook recently to all commercial emails, not Simply put, a website is purchased WhatsApp for $19 just bulk email. Each violation made up of three elements: billion. But what is WhatsApp? is subject to penalties of up 1) a folder that holds files, In short, it is a mobile appli- to $16,000. Fortunately, the like images and videos, 2) a cation and messaging service rules are relatively straight- database that holds content, that sends text messages, im- forward. Here’s a brief sum- such as text, user names, and
REIMAGINE MARKETING 11 specific about each possible Is it OK to delete user posts from your Facebook Page? circumstance. Receiving neg- ative comments can be up- setting and emotional, and having a plan will allow you Yes. Absolutely. Your Face- to react more thoughtfully book Page is owned media. should someone post nega- It’s your real estate to tell your tively on your Page. brand’s story, and you should put your best face forward. For purely hateful comments, This should start with having it is usually best to delete a social media strategy that them. These users are typical- outlines your approach. Part ly just looking for a reaction, of this strategy should in- and it’s best to not reward clude how to deal with neg- this behavior. If they are re- ative posts and comments. Be peat offenders, you can block
Create a plan outlining how you will deal with negative posts and comments.
quite popular. A responsive website will render differently in size and scale, depending on whether it is being viewed on a laptop, tablet, or mobile device. With non-responsive websites, viewing content on passwords, and 3) website that content is then added to. mobile is difficult due to the code that tells the browser This is great for blogs, news, device’s smaller size. Prior to how to format all of these files and shopping sites that may the development of respon- and content so it is rendered include a large number of sive websites, many brands appropriately on screen. A pages in the same format. chose to build a completely CMS is a program that acts Popular examples of CMS in- separate WAP site for mobile as a central interface for edit- clude WordPress, Drupal, and browsing. This solution ad- ing, adding to, and organizing Joomla. dressed the problem, but was items within these three parts. very costly. What is a responsive web- While websites built on a CMS site? Responsive websites helped can be extremely customiz- With the emergence of smart- resolve these challenges with able, a CMS will generally in- phones and tablets, respon- an efficient solution to build- clude several page templates sive websites have become ing a single website that dy-
12 REIMAGINE MARKETING CRM UFAQ INTERVIEW VERSUS EMERGING IDEAS
them from your Page. Some Some negative comments can be turned into a positive if negative comments can be they give you the opportunity to post a productive reply. turned into a positive if they give you the opportunity to namically rendered to differ- % Audience Reach post a productive reply. You ent browser sizes. Depending x # Frequency can also create rules for how on the size of the browser, the GRP to handle posts that include website will alter the layout things like inappropriate lan- and the content for the best So, a campaign that reaches guage or content, links to visual experience per each 25% of the audience with a fre- other content, or comments size. quency of 10 would have a GRP about other brands. of 250. For digital advertisers What are GRPs and how are looking to compare GRPs and Be careful to not unintention- they calculated? impressions, this can be done ally turn your Facebook feed GRPs, or gross rating points, through the following: into a forum for people to measure ad reach and frequen- complain about your products cy. GRPs are generally used for GRP = 100 x Impressions/Audi- just to get feedback. Don’t re- broadcast media, like television ence Size ward behavior that you don’t and radio, versus digital media, want to attract. Giving free which is more commonly mea- Impressions = Audience Size x products to a person who sured via impressions. GRP/100 complained on your Page may attract a lot of unwanted com- plainers.
Lastly, it’s good to set expec- tations. Make it clear how you want to use Facebook and what types of content you’d like your users to post, which may even include a note in the description that you will de- lete negative comments.
Make it clear how you want to use Facebook and what types of content you’d like your users to post.
REIMAGINE MARKETING 13 INTERVIEW
Name: Jeff Marcoux
City: Seattle, WA
Company: Microsoft
Title: CMO Lead Worldwide Enterprise Marketing
Education: Leadership MBA University of Washington
Masters Certificate in Technology Entrepreneurship University of Washington
Congressional Recognition of Leadership in Internet Marketing
Certified Internet Marketer
14 REIMAGINE MARKETING Versus
Which is more likely to be around in 15 years:
Instagram or Pinterest
More likely to drive JEFF success: MARCOUX SEO or paid search What do you do at was a Microsoft ISV in the Microsoft? marketing automation space Better at driving leads: I have a really fun job. I am where it became apparent responsible for the story that when businesses Email marketing or behind what Microsoft can implement a marketing paid search do for marketers. I get to automation solution they take the latest research forget about developing Which will happen first: from our consumer insights a content strategy to feed team, look at what all of our their automation engine. Amazon drone delivery or product teams are working The startup I was working at man walks on Mars on and figure out what that got acquired and I noticed means for marketing teams. that Microsoft was doing I also get to work on and some exciting things in the Greatest opportunity: create amazing content that marketing space so I decided appeals to marketers. I really to join the Dynamics Augmented reality or have an amazing job where Marketing team. geofencing I get to interact with the brightest marketing minds Can you give us an in the industry and here at overview of Microsoft’s Better long-term Microsoft every day. solutions? Any upcoming investment: innovations/releases you What brought you to can share? Facebook or Twitter Microsoft? The digital world is one I came to Microsoft from of radical overabundance the startup world. I spent – overabundant data, More iconic campaign: several years helping to overabundant ads, and start a marketing consulting overabundant apps. All Dove Beauty or Got Milk? practice where I got my of this data, all of these first taste of Microsoft platforms, empower Dynamics CRM and really marketers by making it Use most for felt the need for a marketing easier than ever to reach the entertainment content: planning tool. I was then consumer with their brand recruited to a startup that message. TV, computer, or mobile REIMAGINE MARKETING 15 “We live in a world where we expect customer service to be What other brands/companies crap. Treat customers one level above crap, and you’ve got do you admire for creating yourself a fan. Treat customers above and beyond one level up, a great experience for their and you’ve got yourself a lifetime loyalist.” customers? What are they doing so well? I think Nordstrom, REI, and -Peter Shankman Zappos are the ones that really stand out to me and they all But at the same time, there’s platform to experience, we have one thing in common: more data than we know how to have the most comprehensive They have a culture of customer use, and the consumer is being set of solutions available, and centricity. A TRUE culture overrun by ads. As a result, they come together around where it is lived and breathed ads are becoming less and less one simple idea: make your every day. Many companies effective per capita. The result marketing work. have ‘values’ that are customer is a vicious cycle. The consumer centric but they do not live tunes out most ads, platforms What differentiates a normal them out or empower their respond by throwing more ads customer experience from employees to execute against at them; the consumer ignores an amazing customer them. The three companies the new ads, and so platforms experience? mentioned enable employees develop even more disruptive Really, it is the little things. A to make situations right when pop-ups or pre-roll video. normal customer experience is something goes wrong, and what you expect to get from a advise customers on what And at the same time, marketers brand - a product that works, is truly best for them vs just have such an overwhelming and does what you expect it to. making a sale, truly keeping the amount of data, from such a An amazing experience comes customer at the center. large number of sources, that it’s from when a company surprises difficult to get the most value and delights you. Simple things How do you define customer from their data set. like an Uber having a phone relationship management? charger for you to use, your car I define CRM as a system that As a result, marketing becomes repair shop remembering your enables you to track your harder than it should be, and name, offering a loaner car, and prospects and customers across less potent. The small problems fixing something easy for free the buying and customer and inefficiencies that constrain that they just saw. Now that journey. They enable you to how marketers work with data, is a car shop I’d go back to for know when someone is ready and each other, converge with life. In the software world, it is for a sales call, time for a follow ad platforms that prioritize as easy as having a customer up call, and what pieces of volume and quantity to produce success team that makes sure marketing content or emails poor consumer ad experiences. customers are getting value they have received. They are That’s why we’re here. Microsoft out of what they purchased very valuable at providing social has developed a single, holistic and showing them new ways to insights and a 360 degree view vision designed to make our use/get value out of what they of your customer. But they clients’ marketing campaigns already have. Remember, it are not only for pre-sales and more effective and easier to doesn’t take a lot to stand apart sales. They should also be used implement. From analytics to from the pack. Small things, to ensure you are surprising operations, from advertising often make all the difference. and delighting your customers,
16 REIMAGINE MARKETING CRM UFAQ INTERVIEW VERSUS EMERGING IDEAS
taking care of them in the to miss things like renewals, Your CRM system will get to a post-sales time. These systems invoices, marketing content point where it tells you exactly can enable you to do the little that has been sent, etc. There what you need to do each day things that make an amazing is something nice about having to surprise and delight your customer experience: send a your calendar automatically customers without you having birthday or anniversary card, remind you about what you to do much thinking beyond know when someone might need to do each day to exceed being customer focused. need a little extra help, identify your customers’ expectations. your high value customers to ensure they are in LOVE with What are the biggest your product or service. Where do you see CRM going obstacles to bringing this in the future? vision to fruition? What’s the tipping point for I see CRM becoming a true Data is the biggest obstacle. needing a CRM system? When engagement engine for all What data sources do you is an Excel spreadsheet no things customer or prospect need, how do you hook them longer sufficient? related. It can predictively up to predictive engines that I think that every company advise businesses on when and can tell you what you do need should have a CRM system what a customer or prospects to do each day to exceed your of some sort beyond a needs: marketing, sales call, customers’ expectations. To spreadsheet. A spreadsheet demo or sample, preemptive reach this future you have to cannot give you notices of service, etc. I believe that they bring together sales, service, important things and is a very will monitor social and product social, marketing, and many linear view of your customers. usage to allow businesses to other data sets along with the At best, it sets you up to provide see how their consumers are right data scientists to create a standard experience. With using products and features a system, algorithms, and an spreadsheets it is very easy and if they are happy or not. always learning CRM. The
REIMAGINE MARKETING 17 technology all exists today, but become a watchdog tool vs What tools are in your someone has to bring them all something that helps people personal marketing arsenal? together with an incredible user create amazing customer To build my personal brand and experience and interface. experiences. network I use the following: LinkedIn, Lead Rocket, Is there a recent or emerging Out of all of the changes in Heroic.ly, Twitter, Blogging, and technology that you think the marketing world over Facebook. I have also used could change the future of the past 20 years, what do tools like Dynamics Marketing, CRM? Social media, mobile? you consider to be the most CoreMotives and Marketo for I think that predictive analytics significant and why? marketing automation. will have huge impacts on I think the development of the future of CRM and all the smartphone is the biggest What marketing tools/ technologies. Imagine a system change in the marketing world strategies do you see as being that has the ability to identify over the past 20 years. 9 out undervalued or overvalued? what a customer or prospect of 10 mobile searches lead to Why? needs next, on an individual action and over 50% lead to I think marketing planning level- marketing material, purchase (SearchEngineLand). tools are undervalued in call, demo, birthday card, This has created a paradigm the marketplace. Just like etc. Predictive CRM would be shift in the marketing a marathon or summiting able to look at your specific landscape that marketers need a mountain, planning and business, learn what types of to recognize- from creating preparing are critical to success. deals you’re most likely to close apps, to push notifications, You need to have a plan in and why, and quickly identify to geospatial offers. Mobile place, know what’s necessary what steps lead to success and has been a game changer for to win, and have an execution ultimately creating amazing marketers across the board. plan to ensure success. fans vs simply customers. What do you see as the What do you believe is the What is the biggest misstep next major evolution in greatest challenge marketers you see businesses make marketing? face today? with regards to customer The next ‘big’ thing in I think the biggest thing relationships? Why do you marketing is going to be taking facing marketers today is think this is? personal content to the next how to measure ROMI. It is I think they treat it as a static level. What I mean is that very difficult to measure a system of record that is only marketing will become truly campaign from awareness used for reporting. This is the individualized where marketing to lead to conversion and easiest way to use CRM and will fill a ‘hopper’ with accurately distribute revenue turns it into a sales pipeline and marketing collateral and based to all marketing touch points case-tracking management tool on who I am (demographics, for each customer. Attaining vs a customer RELATIONSHIP digital body language, previous this gives you the ability to manager. Once a business buying history, and network) optimize your campaigns and treats their CRM in this way, the I will receive exactly the right marketing mix while equipping adoption drops significantly piece of content I need to move marketing to have a seat at the because the system has my purchase forward. corporate table.
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With such a cluttered 1) Make your marketing What’s the best piece of landscape, what can truly personal with dynamic advice you’d give to a fellow brands/marketers do to be websites and content veteran marketer? truly different? that customize exactly to I would share the guidance Customers are now over your prospects. 2) Create from Peter Shankman that I 57% of the way through compelling and diverse have taken to heart: ‘We live their buying decision before content that will impact in a world where we expect they ever reach out to a customers in that 57%. customer service to be crap. company. It is because Treat customers one level of this that marketing has What’s the best piece of above crap, and you’ve got become more important advice you’d give to a new yourself a fan (not saying that’s than ever and standing out marketer? a good place to settle). Treat is even more so. There are Create marketing content that customers above and beyond two key things marketers adds value to people’s lives. one level up, and you’ve got can do to be different: You are what you publish. yourself a lifetime loyalist.’ --
REIMAGINE MARKETING 19 VERSUSSEARCH VS SOCIAL Search and social dominate web use, collectively accounting for nearly half of all time users spend online. As they become increasingly interlocked, understanding the differences between search and social can help ensure the most efficient allocation of resources.
MINUTES PER DAY AMERICANS SPEND 37 ON SOCIAL MEDIA AWARENESS & SOCIAL VALIDATION INTEREST RESEARCH PURCHASE
SOCIAL SEARCH SOCIAL SEARCH Social is a great place for ideating When exploring a purchase or Armed with information, users Once a decision has been made, and discovering new things that product, search is frequently will seek social validation of users may seek out deals and peers are using. It can be used used to gain more information. their purchase. This may validate cost comparisons. Beyond this to build a relationship between This information helps drive the a decision or drive selection point, they will move forward brands and customers. decision. between remaining options. with a purchase.
20 REIMAGINE MARKETING CRM UFAQ INTERVIEW VERSUS EMERGING IDEAS
EXPLORING DIFFERENT USES SEARCH SOCIAL By the numbers Direct Response Awareness Despite the growth of using The diffusion of information social for direct response, search through social networks can still dominates this space. While make them great tools to drive Mobile Share social tries to identify interests brand awareness. This spread and deliver content, search has of information comes with an 60% the advantage of being able implied brand endorsement from to target handraisers for very peers who share or like a brand. specific things. According to a Unlike search, which requires Webmarketing 123 survey, 77% some initial search intent, social of marketers felt search (SEO & can introduce new products and
PPC) had the biggest impact on ideas to users that they were 20% 40% 60% 20% lead generation. previously unaware of. search social One-way Two-way One of the most fundamental Unlike search, social provides The growth of mobile has changed both search and differences between search and the opportunity for a two- social. Roughly 20% of searches are performed on social is the direction of the way engagement between a mobile, including 45% of local searches (eMarketer, 2013; interaction. Search engines are brand and its customers. This BIA/Kelsey, 2012). More than half of social media time is a one-way street where brands is one of the most powerful spent on mobile (Business Insider, 2014). push information to users that elements of social. It allows ask for it. While this may seem brands to provide timely and like a limitation for search, it also personalized information, Minutes Per Visit By Source provides brands the opportunity respond to feedback (both to deliver their story the way positive and negative), develop 04:36 they want it to be told without a one-to-one relationship with the clutter of the social-sphere. It individuals, and share peer-to- allows brands to steer users. peer recommendations.
Facts Opinions 01:42 01:41 An Econsultancy report showed The information users seek from that 61% of consumers use search social is much more qualitative 0 1 2 3 4 5 engines to research products than the information they seek direct search social before making a purchase. When from search. Instead of facts, seeking specific information, they are look for opinions and USERS WHO VISIT NEWS consumers still turn to search recommendations from their engines to pin-point the exact community. This frequently SITES DIRECTLY SPEND information they’re looking for. In means validating a decision they LONGER ON SITE turn, search engines can provide have already made or looking for THAN USERS WHO brands with greater insight into red flags that may turn them off 3.7X what matters to consumers. of a particular purchase. ARRIVE FROM FACEBOOK OR SEARCH (Pew Research Center, 2013).
204,965,536 196,866,416 WHO HAS THE MOST 144,807,824 MONTHLY VISITORS?
95,173,360 74,168,752 60,982,972 51,462,960 49,757,720
1. google 2. youtube 3. facebook 6. twitter 10. yelp 13. pinterest 19. bing 20. linkedin 10096+71+46+36+30+25+24+ (Quantcast, 2014) REIMAGINE MARKETING 21 EMERGING IDEAS
Bitcoin
Bitcoin, the booming virtual currency, generally refers to three things: the currency (usually written with a lower- case “bitcoin”), the technology, and the network.
Bitcoins are a currency just like Dollars, Euros, and Yen, but with two very distinct differences. First, bitcoins have no physical form - they are entirely digital. Imagine if all hard cash were eliminated and currency could only be exchanged through digital transactions, the way we cur- rently conduct credit card purchases. Second, unlike other world currencies, there is a fixed amount of bitcoins - 21 million - and that amount can never be exceeded by the creation of new bitcoins.
Like all other currency, bitcoins have value because people have decided to accept them as payment for goods and 1 services. If everyone stopped accepting quarters as cur- rency, all of the quarters you have in your pocket would 3D Printing be deemed worthless. The only reason they have value is because they’ve been assigned value. Bitcoin’s value is no 3D printing is one of the most exciting new technologies different; however, because it’s a new currency, its value is emerging in the market. Through an additive layering much more volatile. process, it allows users to print virtually any 3D digital rendering in actual 3D. The Bitcoin technology is simply an open-source software launched in 2009 that enables a peer-to-peer payment sys- The applications for 3D printing are expansive, from more tem. When a transaction occurs, it must be confirmed with- customized medical devices to printers on Navy ships that in the Bitcoin network. To confirm a transaction, network can print replacement parts for repairs. The implications users (more accurately, their computers) must solve a com- for 3D printing technology in the product and marketing plex mathematical calculation, a process known as mining. world are very exciting as well. Not only will it enable rapid- Mining is not only necessary to confirm the transaction, but prototyping, but as it becomes faster and less expensive, it also increases security. For their efforts, the miner is paid it could enable new, more personalized experiences for a transaction fee and given newly created bitcoins. consumers. Disney recently used this technology to allow users to buy Storm Trooper action figures of themselves. Several noteworthy businesses, like Reddit, OkCupid, and 3D printing will make it much easier to develop and try out PayPal, now accept bitcoins, and it is rumored that several new packaging options, as well as produce short-run items, other major retailers will start soon. Whether or not Bit- such as custom products for trade shows. coin lasts, its effect will be felt for a long time.
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Smart Materials
Smart materials are about to change the world more than 2 we can imagine. New smart materials continue to emerge, from materials that can repair themselves to materials that alter their shape based on changing light, temperature, or electrical charges. As these materials become less expensive and more readily available, brands will be eager to apply these technologies to new and existing products to create things we never thought possible.
One of those materials is a bio “smart tag” developed for products having a limited shelf life, such as food and medicine. These gel-like tags can be made as small as a kernel of corn and can be produced to react by changing color to specific chemicals and microbial growths.
The opportunities for this technology are broad. For starters, it could be applied to various food and medicine packaging to alert consumers of when their food has spoiled. It is likely to be ground-breaking in testing for bacteria like e. coli and salmonella.
While this technology is still extremely new, there are exciting opportunities that present themselves. For example, this technology could give customers a clear, objective signal that they need to replace their products - like replacing a toothbrush head or ordering fresh milk - in a way that doesn’t feel like they’re being ‘marketed’ to.
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REIMAGINE MARKETING 25 IN 2014, MARKETERS WILL INVEST AVERAGE MARKETING SALARIES IN US DOLLARS $135 BILLION INTO NEW DIGITAL MARKETING COLLATERAL. (WEBDAM, 2014)
As companies expand into new markets, many will look to hire a local marketing team. The following data from oDesk shows marketing salaries around the world. Average $16
BILLION United States
$ $31 PROJECTED1.2 REVENUES FOR B2B MARKETING AUTOMATION IN 2014 The B2B marketing automation technology industry Russia is set to have another record year, with a 60% growth $22 rate in 2014, according to Raab Associates. UK MEASURING MARKETING ROI $15 Average salary per hour in US Dollars ($) per hour in US Dollars Average salary NO TRACKING TEST & CONTROL A 2013 India 20% GROUPS 11% Lenskold $10 MULTI-CHANNEL44+1+20++19++10++2+1+R Group study ATTRIBUTION 21% showed that MARKET MIX MODELING two-thirds Pakistan 3% of companies use $9 no tracking or single attribution to measure the Phillipines $9 performance average SINGLE ATTRIBUTION of their marketing. 45% 26 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
SPENDING CHANGES FOR 2014
SOCIAL TECH 20.8% $2.9B
DISPLAY 17.1% $20.6B
IF YOU WERE GIVEN 10% MORE BUDGET, DIGITAL AD SPEND WHERE WOULD YOU SPEND IT? 14% $50.6B A recent study by SiriusDecisions asked CMOs where they would
allocate a 10% increase in budget. Over a third of CMOs said they SEARCH would put the money towards demand generation. As more companies 12.4% increase investment in demand generation, they are turning to CRM $22.6B technologies to coordinate efforts between marketing and sales. TV
40% 3.2% $68.5B 30% OVERALL MEDIA 1.9% 20% $124.6B
10% MAGAZINES 0.0% 0% CHANNEL OTHER SOCIAL ENABLEMENT MKT OPS CONTENT BRAND DEMAND $15.1B CREATION EMAIL BREAKDOWN OF SOCIAL 15% 57% 0.0% MEDIA ADVERTISING Other $2B 2% 3+4+6+10+12+13+17+35BUDGET ALLOCATION NEWSPAPER Facebook dominates Group, 2014) (Winterberry 13% (8.6%) social media advertising, $17.1B receiving over half of allocated dollars. Twitter and YouTube are a distant 13% second (GO-Gulf, 2013). 57+13215+F REIMAGINE MARKETING 27 :60
T MINUS SIXTY MINUTES The immediacy of social media is shifting customer expectations. AVERAGE MARKETING DIRECTOR SALARY A 2013 American Express Open Forum study showed that 25% According to PayScale, the median salary for a Marketing of consumers who complain on Director in the US is $76,764. This is comprised of salary, social media expect a response bonus, profit sharing, and commissions. within one hour. $0k $50k $100k $150k
Salary ($39.5k-$135k) MINUTES Bonus ($26-$29k)
Profit Sharing ($978-$17.4k)
Commission ($0-$20.5k)
Total ($38k-$153k)
MARKETING DIRECTORS SALARY BY CITY IN SAN FRANCISCO, 75+65+91+82+72+65+68+83+86+90+66+69+ 100+ 3 SEATTLE, AND BOSTON Atlanta $87,005 EARN TOP SALARIES Austin $75,562 Boston $104,702 As a marketing director, Chicago $94,620 where you live greatly Dallas $83,700 Denver $75,110 THE AVERAGE affects your earnings. San Houston $78,613 TIME SPENT Francisco topped the list Los Angeles $95,891 5 with a median salary of Minneapolis $98,812 READING DAILY $115,512, followed by New York $103,772 Phoenix Seattle, Boston, and New $76,716 BY AGES 15 TO 19 San Diego $80,090 (BUREAU OF LABOR STATISTICS, 2014) York, all of which averaged San Francisco $115,512 six figures. (PayScale, 2014) Seattle $106,982
28 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
SPEAKING PERCENT SPANISH ONLY VERSUS 100+90+69+67+64+58+49+0+4+3+3+3+2+2+2 SPANISH IN California 13.70% Texas 12.31% AMERICA New Mexico 9.39% The Spanish-speaking Arizona 9.16% population is rapidly Nevada 8.76% Florida 7.89% growing in the US. New York 6.66% States in the West
and Southwest have South Dakota 0.57% the highest density of North Dakota 0.47% individuals who only Hawaii 0.44% speak Spanish. The Montana 0.40% North and Northeast West Virginia 0.34% CLIENT VS AGENCY Vermont 0.24% have the lowest. (US 22.2% Census Bureau, 2012) Maine 0.2%
4.7%
UNSATISFIED/VERY UNSATISFIED
JOB SATISFACTION 10028+W 10012+W THE TRUTH ABOUT THE TRUTH 28.1% 11.5% A 2012 Newsweek study reported that nearly a third of SEARCHING FOR NEW JOB people admitted to lying on their resumes. Men seem to NEW JOB lie more, an average of 6 times per day compared to 3 times per day for women. But then again, how can we trust someone to tell the truth about lying?
X X X X X X X X X X X X X 89.1% 89.0% X X X X X X SECURE/VERY SECURE
X X X X X X JOB SECURITY
X X X X X X REED, 2014 REIMAGINE MARKETING 29 AN INCREASE DO PEOPLE HATE IN CLOUDS ADVERTISING? MAKING IT While people may claim that they RAIN FOR CRM dunbar’s do, what people really hate is bad, Cloud revenue
irrelevant, and invasive advertising. 49% is expected to Consider this: account for 49% of number the $23.9 billion in 82%% of consumers enjoy revenue projected
reading relevant content for CRM software in 8 from brands 2014. In 2013, they People like good content. 2 Ads are content. If it’s good represented 40%, content, people will like it. and are expected to exceed 50% in 2015. +22+R % 78 There are over 6.1 million (Gartner, 2013) TV commercials uploaded to YouTube THE FUTURE OF 6 The most viewed, an MSN MARKETING ad from 2000, has 209M According to a 2013 views. People will watch ads M that they enjoy. Yahoo survey, 78% of CMOs think that 45% of consumers find TV custom content is the 78% commercials amusing. future of marketing. 4 According to MRI, in 2013, Roughly 86% of B2C 45% of American adults marketers already use 5 said that they found TV content marketing. % advertising amusing. People like good content. Ads are DATA OFFICER content. If an ad is good content, BY 2015, 25% OF LARGE GLOBAL people will like it. ORGANIZATIONS WILL HAVE CHIEF DATA OFFICERS. (GARTNER, 2014)
30 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
LEAD GEN dunbar’s number DUNBAR’S NUMBER Dunbar’s Number is a theoretical limit to the number of social relationships one 1 THE BLUEPRINT OF can maintain. The number is proposed to be between LEAD GENERATION 100 and 250, with the 5 The first step in commonly used average of 150 generating leads is to relationships per person. offer users something of high value in 0 exchange for their the OFFER information, such as a FACEBOOK FRIENDS sweepstakes or ebook. Facebook gives users the tools to maintain a greater To direct users to redeem an offer, number of friendships, 462 on provide them with a 4 average. While the scope and clear call to action, quality may differ from what the CALL- such as a button TO-ACTION reading, “Click Here To was defined by Dunbar, the Download.” 6 fact remains that technology is changing how we connect. The offer landing page should include a lead capture form and 2 information relevant LINKEDIN to the offer. Having the LANDING unnecessary info will CONNECTIONS PAGE hurt conversion rates. LinkedIn users average 342 The lead gen form connections. While technology 3 should capture enables a larger professional any necessary lead network, it is important to information. Think long-term when consider how maintaining larger 4 establishing fields. the FORM numbers of relationships affects More fields will mean the relationships themselves. lower conversion rates. 2 REIMAGINE MARKETING 31 MOST VIEWED ADS CHECK OUT THE ON YOUTUBE NEW TWITTER PAGE LAYOUT Twitter is changing their layout. The new pages feature MSN UK wide profile Changing Room, 2000 headers, larger Views: 209,006,959 profile pics, and Euro Rscg Wnek Gosper highlighted tweets. Check out more details on the Creative Brief. ILLUSTRATOR, Adobe Illustrator | 9.4 Turkish Airlines Adobe Photoshop | 9.1 Kobe vs Messi, 2012 PHOTOSHOP, Views: 107,487,512 AND INDESIGN Adobe InDesign | 8.5 Alametifarika TOP THE LIST Adobe AfterEffect | 5.4 OF MOST Adobe Dreamweaver | 5.1 IMPORTANT Adobe Lightroom | 4.6 TOOLS. Adobe Flash | 4.4 Designers were Autodesk 3ds Max | 3.7 Volkswagen asked to rate Autodesk Maya | 3.6 The Force, 2011 the importance Views: 59,787,260 10 Deutsch of various tools. Adobe Illustrator, Photoshop, and InDesign topped the list of tools. (Smartpress, 2012) Budweiser Puppy Love, 2014 Views: 50,306,067 Anomaly 63+12+11+8 63% SANS FONTS MOST USED FONTS
12% IN LOGO DESIGN SLAB FONTS A 2014 study by Tasty Placement looked at logos 11% 27+28+33+35+38+41+64+68+71of the top 100 brands. They found that sans fonts SCRIPT FONTS are more than twice as common than all other fonts 8% combined in logo design. Twenty-one percent of SERIF FONTS the logo fonts were Helvetica, a sans font.
32 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS IMPROVE FACEBOOK ENGAGEMENT
FACEBOOK POSTS POSTS WITH WITH PHOTOS LESS THAN 250 GET 53% MORE CHARACTERS LIKES, 104% MORE HAD 60% HIGHER COMMENTS, AND ENGAGEMENT 84% MORE CLICKS THAN LONGER POST PHOTOS SIMPLE POSTS THAN TEXT POSTS. FACEBOOK POSTS. (KISSMETRICS, 2013) (TRACK SOCIAL, 2012)
POSTS WITH POSTS INCLUDING EMOTICONS “SHARE” RECEIVED HAD 33% MORE MORE SHARES. COMMENTS, WERE :-) USING “LIKE” AND SHARED 33% MORE “COMMENT” DROVE OFTEN, AND LIKED USE EMOTICONS THEIR RESPECTIVE CALL-TO-ACTION 57% MORE OFTEN. METRICS AS WELL. (AMEX OPEN FORUM, 2013) (HUBSPOT, 2012)
UX FAIL Sixty-eight percent of users leave a website 68% due to a poorly $44,150 designed user experience. AVERAGE ANNUAL SALARY OF A (Homestead, 2013) GRAPHIC DESIGNER. (BLS, 2013) 68+32T REIMAGINE MARKETING 33 FACEBOOK USERS WHO HAVE VOLUNTARILY TAKEN A BREAK FROM 61% THE SITE. (PEW, 2013) FACEBOOK FATIGUE WHAT DRIVES THE An increasing number of Facebook users are MOST RELATIONSHIPS? voluntarily taking breaks from the site. Here’s why: More than half of marketers listed social
100+48+48+43+38+38+38+33+29+19+10+10+10+5+5 as the largest driver of relationships and 21% Too busy engagement in their media mix. 10% Not interested 54% 10% Waste of time 9% Too much drama 8% Using too much 25% 8% Infrequent user 8% Went on vacation 12%
7% SOCIAL EMAIL WEB Got bored with it 6% No reason 4% Privacy concerns 2% No computer 2% Prefer other 2% Health issues 79% 1% REASON FOR OF MARKETERS Religious reasons HAVE INTEGRATED
1% FACEBOOK Didn’t share SOCIAL MEDIA INTO BREAKS THEIR TRADITIONAL MARKETING ACTIVITIES 34 REIMAGINE MARKETING 79+21 FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
Hardly familiar
24% No, not at all 43%
Somewhat PERCENT OF MARKETERS 49% 43WHO HAVE FOUND NEW +57+R 24% CUSTOMERS VIA LINKEDIN. Very knowledgable 3% DO YOU KNOW WHAT NATIVE ADVERTISING IS? 52% A 2014 Copyblogger survey showed there is a large knowledge gap with native advertising. Native advertising is an online marketing strategy in which content is provided in the context of the existing user PERCENT OF MARKETERS experience. The intent is to make the advertising less 52WHO HAVE FOUND NEW +48+R intrusive and more integrated. Native advertising tactics CUSTOMERS VIA FACEBOOK. include advertorials, branded content, Promoted Tweets, Sponsored Stories, and product integrations. HUBSPOT, 2013
WHICH MARKETING TACTICS HAVE THE BEST ROI FOR YOUR COMPANY?
67% 38% 37% 19% 16% 15% 13% 12% 11% 11% email online direct phone trade PR twitter social event field mail show 67+38+37+19+16+15+13+12+11+11DMA, 2012 79+21 REIMAGINE MARKETING 35 TRADITIONAL DATA RESEARCH MINING VERSUS Data mining is the next evolution of market research. Three-out-of-four researchers believe that mining existing data will take over as the main form of research, versus traditional approaches. (NJIT, 2013)
USES FOR SALES DATA SURVEYS FOCUS GROUPS PREDICTIVE ANALYSIS
REGRESSION CHOICE MODELING RULE INDUCTION ANALYSIS
MEMORY-BASED CLUSTERING NETWORK ANALYSIS REASONING MARKETING
NEURAL NETWORKS DECISION TREES UPLIFT MODELING 85 85% OF IT AND BUSINESS LEADERS SALES AT LARGE ORGANIZATIONS BELIEVE THAT BIG DATA CAN HELP BUSINESSES MAKE MORE INFORMED 85% DATA-DRIVEN DECISIONS (IDG RESEARCH SERVICES, 2013) OPTIMIZATION 5858 +42G big data is a challenge RISK ASSESSMENT driving operational efficiencies is 7373 +27G the biggest benefit of big data 50 big data helps in better meeting QUALITY consumer demand ASSURANCE 50+50G WIPRO, 2012 36 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
QUALITY IS KEY Data quality is key to damaging, leading to bad, TRI making informed data- misinformed decisions. LLI driven decisions. A study Decisions like these cost the ON by IBM suggested that US economy an estimated $3.1 one-in-three business $3.1 trillion annually. leaders don’t trust the Collecting good clean data ESTIMATED information they’re given starts in the planning process. ANNUAL COST ON to make decisions. And as Make sure you’re clear on many as 27% were unsure what data is being collected, THE US ECONOMY of how much of their data how, and what it means. Be OF POOR DATA was accurate. At best, bad aware of collection biases and data is useless. Quite often, user biases, and control for QUALITY bad data can be incredibly extraneous variables. With all of its benefits, big it, especially for real-time data does not come without systems. A large variety its challenges. As mobility in data types and sources and tracking increase, there requires more sophisticated is an increase in the amount systems and analytics that of data being stored. This can both translate data and means larger facilities to store make it uniform. All of these data and more powerful variables create a challenge computers to process these around data accuracy. Even THE FOUR growing volumes. The the best servers, processors, increased speed of data and analysts in the world can CHALLENGES demands faster systems be easily neutralized by poor OF BIG DATA to aggregate and process data quality. (Gartner, IBM) VOLUME VELOCITY amount of data speed of data
VARIETY VERACITY forms of data accuracy of data
REIMAGINE MARKETING 37 38 REIMAGINE MARKETING briefs
REIMAGINE MARKETING 39 What is the value of your software?
hether you’re Computer Software The definition of building software computer software W to sell, building noun written programs or procedures includes: for internal use, or or rules and associated purchasing software, documentation pertaining to the • Operating systems understanding software operation of a computer system • Utilities and that are stored in read/write valuation is important. memory. • Business applications (Dictionary.com, 2014) • Word processors Software is generally to operate hardware, such • Spreadsheets classified as an intangible as with an operating system, • Computer games asset (IAS 38R). In the software is generally • Electronic databases instances where the considered to be part of the • Mobile apps software is necessary cost of the hardware. • Enterprise software
Software Evaluation Criteria 1 Usability for all users 2 Flexibility for today and tomorrow 3 Adapt to existing enterprise infrastructure 4 Ease of implementation and management 5 Reliability and accuracy of software 6 Responsiveness and stability of vendor 7 Total cost of ownership and ROI
Legal note: Tax law is complicated, frequently changing, and can vary state by state. The material contained within Microsoft Reimagine are for informational purposes only and is not meant to be a substitute for professional advice. Please consult a tax professional for advice on software taxation and/or valuation.
40 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
3 Approaches To Software Valuation
01 MARKET APPROACH The Market Approach values the software based on what it would sell for in an active market. This is frequently based on the selling price Cloud vs On-Premise of similar items, making A service or software? Cloud technologies are adjustments for differences. forcing tax lawmakers to rewrite the rulebooks. The growth of cloud-based for both the providers and 02 INCOME APPROACH software, frequently called the end users, especially Software as a Service pertaining to revenue and (SaaS) has presented some cost recognition. When The Income Approach interesting challenges traditional software is values the software based for accountants. Unlike sold, most of the revenue on projected income traditional software, which can be recognized at produced. It is calculated was purchased, delivered, the time of the sale. If and implemented on a software is deemed a through dividing the user’s computer, SaaS service, the revenue must projected net operating users don’t purchase the be recognized ratably income from the software by cloud-based software and over the contract term. the software may run in a the capitalization rate. different state from which When taxed as a service, the user is in. Or perhaps cloud-based software even in a completely companies must account different country. for two different types 03 COST APPROACH of costs incurred. First, At the state level, there has the costs to build and The Cost Approach values yet to be a consensus on maintain the software, the software based on how to account for sales and second, any direct what it would cost to and use taxes on cloud- costs attributed to specific based software transactions. customers. rebuild or replace the Many states have scrambled software. This method must to address the questions As the cloud software account for employee time that have emerged. market grows, keep an eye out for the evolution and expenses, as well as The answers to these of this interesting overhead expenses. questions have implications accounting discussion.
REIMAGINE MARKETING 41 CALCULATING CUSTOMER LIFETIME VALUE As we pursue strong and long lasting relationships with our customers, it is important to understand the value of these relationships. Calculating Customer Lifetime Value (CLV) is both simple and incredibly complex. The following breaks down the math and thought process behind calculating CLV.
ustomer simple intuition if it’s you establish reasonable customer acquisition and Lifetime all you have to work retention costs. Modeling different scenarios may Value, or with, establishing these help you determine if spending more to acquire C CLV, is metrics is doable. a certain type of customer is worth the return, or defined whether it’s more profitable to spend money to as the present value It should be said that gain new customers versus retain existing ones. of the future cash CLV is not a static flows attributed to the number. CLV should be The cost of losing a customer may be more customer during his/her looked at and adjusted than lost revenue. Loyal customers bring entire relationship with as more information with them referrals, word-of-mouth, social the company (Pearson becomes available. In proof, and perhaps positive online reviews. Education, 2010). In fact, the accuracy of essence, it quantifies your metrics may be There is more than one way to calculate how much “value” - or less important that CLV. Other model types include RFM models, profit - a customer will having a consistent probability models, econometric models, bring into your business methodology and persistence models, computer science during their lifespan as rationale at the start. models, and diffusion/growth models. a customer. Once you have a model in place for calculating While the actual CLV CLV you can update it Having a 360-degree customer view calculations aren’t as more data becomes is crucial towards understanding the full difficult, the challenge available to you. With contributions and costs from customers. (See comes from identifying more data points, it will the Analytics Brief for more). the accurate input become more accurate values, such as yearly over time. Use both historical and predictive data gross contributions when calculating inputs. Historical data per customer or CLV is an important gives you a base for your values while customer lifespan. metric because it predictive data enables you to use logic and Although difficult, by can help you identify knowledge of future plans - like increased using historic data, more profitable ROI marketing spend - to project changes. industry data, or just opportunities and help
42 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS the formula n n r i r i-1 CLV = GC * - M * d i d i-0.5 Σi=0 (1 + ) Σi=1 (1 + )
SIMPLIFIED, this formula calculates the total projected revenue GC = Yearly Gross Contribution Per Customer (average annual revenue * years of customer lifespan) minus M = Yearly Retention Costs Per Customer the total projected costs (average annual cost * years of n = Average Number Of Years A Customer Is Retained customer lifespan) and multiplies them by a yearly discount r = Yearly Retention Rate rate to convert future dollars to their present values. d = Yearly Discount Rate
REVENUE COSTS LIFESPAN PRESENT VALUE
Using historic data Again, through the Customer lifespan can Due to inflation and you can project the use of historic data be calculated using interest rates, the average yearly gross you can project your your retention rate. A concept of the time contributions per yearly retention costs simple annual retention value of money states customer. Simply per customer. This rate calculation is to that a dollar today is multiply the average generally includes take your total number worth more than a revenue per visit by the the variable costs of of customers from last dollar tomorrow. Thus, average number of visits delivering a product. year and divide it by the when calculating CLV, in a year. Be sure to It may also include remaining customers it is important to value account for seasonality, marketing expenses this year. Lifespan can future revenue and growth, and future and a prorated portion be calculated using costs in terms of their profit margin changes. of overhead costs. CL=1/(1-RR). net present value.
BREAKING IT DEMO DATA USER TYPE SATISFACTION Demographic and Elite and regular users may Metrics like satisfaction and DOWN EVEN geographic data may alter have different behaviors and loyalty may affect behaviors the CLV. For example, users in lifespans. For example, an and lifespans. Highly satisfied the North will use more cold elite tech user will likely buy customers usually spend FURTHER weather products. more tech gear. more than dissatisfied ones.
REIMAGINE MARKETING 43 The Power of Choice The emergence of cloud technology has introduced a new software deployment method. But is it right for you business? Here is a breakdown of the options to help you choose.
ON-PREMISE CLOUD PRIVATE CLOUD Software is installed on a Software is located on Software is located on a local server that is owned a remote server and dedicated server (local or by the client. accessed via the Internet. remote) and accessed via the Internet. PROSPROS PROSPROS • Security of locally • Reduced upfront costs PROSPROS stored data • Flexibility to scale • Greater security • No subscription fees • Less maintenance • Easy mobility • Easier mobility CONSCONS CONSCONS • Hardware requires CONSCONS • More expensive updates and • Subscription fees • May still require maintenance • Reduced data control hardware updates and • Slow implementation maintenance
44 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
The total cost of ownership is largely dependent upon the software. On-premise solutions generally have larger upfront costs than cloud-based solutions, but they will not require a subscription fee. On-premise solutions require IT staff to manage both the
COSTS software and hardware on which it runs. SECURITY Because they are more isolated, on-premise solutions are generally considered more secure. Certain industries even have legal requirements that drive companies to keep software on-premise. That being said, security on many cloud-based solutions is really strong, as their success often depends on it.
Due to complicated security protocols, most on-premise software requires users to be on-premise to access them. With software that lives in the cloud, these authorizations are taken care of effortlessly making mobility much simpler. MOBILITY FLEXIBILITY Because the software is purchased and implemented upfront, modifying on-premise solutions can be very complicated. Cloud-based solutions offer amazing amounts of flexibility, such as adding or removing features with the click of a button or dynamically increasing server capacity to meet seasonal demands.
94% OF BUSINESSES ARE USING CLOUDS CLOUD ADOPTION BY COMPANY SIZE
ENTERPRISE 29% 58% 7% 16% 35% 31% 18% 1000+ 16+35------+31+18 20% 29% 25% 26% SMB <1000 watcherbeginnerexplorerfocused PUBLIC HYBRID PRIVATE 20+29+25+26 CLOUD ONLY CLOUD CLOUD ONLY RightScale, 2014
REIMAGINE MARKETING 45 SIMPLE STEPS TO personalizing BEGIN CREATING PERSONALIZED CREATIVE FOR creative YOUR AUDIENCE Too often marketers start the creative and messaging process with asking, “What do we want our customers to know about us?” instead of, “What do our customers need from DEFINE us?” The focus is on what is being said and not on what message is being received. Here are some simple steps you can use to create more personalized messaging using your customers as the design point for your plans.
Audience segments should define your define your define your be based on differentiated behavioral drivers. “Does this segments triggers creative segment need something different than other segments Gender Cookie Data Concept to help make a decision?” Age Self-Defined Copy Buying Stage Page View Photography Activity Click Gender Occupation Purchase Color Location Action Sequence Call-To-Action Triggers are the parameters by Behavioral Inquiry Landing Page which individuals are placed into specific segments. These may be assigned manually, through SEGMENT A cookie data, or through actions, SEGMENT B such as visiting a page or SEGMENT C making a purchase. SEGMENT D SEGMENT E triggers
With your audience ads segmented, now you can create www personalized experiences for each segment. The level of www personalization can range from using gender targeted creative to customized support.
46 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
BREAKING DOWN THE NEW TWITTER LAYOUT
HEADER PHOTO The profile header photo is now located at the top of the page and stretches across 1500x500 the entire screen at 1500x500 px.
PROFILE PICTURE The profile picture is 400x400 now located in the upper left. It is larger, 400x400 px.
PROFILE Profile info, including name, handle, bio, and pictures, are now all on the left under the profile picture. PINNED TWEETS You can now pin one of your tweets to the top of your profile page. Click the “More” menu and select “Pin.”
BEST TWEETS Your most popular posts, based on retweets, favorites, and replies, will appear larger.
TRENDS Trends and Who To Follow have been moved from the left to the right side.
REIMAGINE MARKETING 47 What’s more QUALITY or important: QUANTITY?
FANS & FOLLOWERS AD IMPRESSIONS
WHY QUALITY? WHY QUANTITY? WHY QUALITY? WHY QUANTITY?
• When you distribute • Look at net numbers. • High quality ad • Better back end content, it is being While the ratio of placements help metrics. High volume seen by people who quality fans vs total ensure your ads will buys generally have are highly interested. fans may be lower, be seen. lower CPMs. While • Your audience will having more total fans • Ads are more likely these buys may get be more targeted, likely means more to be aligned with lower click-through- making it easier to quality fans as well. relevant and targeted rates and conversion develop targeted • More diversity. Some content. rates, the lower cost content. of these “mid- to • Reduced risk of of the ads frequently • Smaller, more low-quality fans” may delivery issues, like results in more total targeted audience turn into your biggest being served next to clicks, lower cost-per- makes it easier to supporters. inappropriate content. click, and lower cost- build relationships • Quantity of followers • Higher click-through- per-acquisition. with individuals. gives you social proof, rates and conversion • High frequency is • Likely higher ratio which makes people rates. important for building of Likes, Shares, and more likely to buy • Reduces likelihood of awareness, interest, Retweets per follower. your products. frequency spamming. and favorability.
48 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
The answer: It depends. Many media “gurus” would like us to believe that the debate is over: quality is more important than quantity. Quality followers, quality impressions, quality content, and quality leads. While there is certainly an argument to be made for the value of quality, truly savvy marketers understand the value and importance of quantity. We’ve broken down several key benefits of each to explain.
CONTENT & POSTS LEADS
WHY QUALITY? WHY QUANTITY? WHY QUALITY? WHY QUANTITY?
• Content pieces • Focusing on quantity • Storing and managing • While close rates may provide opportunity doesn’t mean quality a high volume of be lower, net number for deeper has to be poor. It leads is costly and of sales can be higher. engagement. Their might just not be as time consuming. • High-quality leads quality should reflect in-depth. • High-quality leads lets likely captured within the high quality of • Most people aren’t you spend more time the larger quantity of this interaction. reading your full white focusing on those leads. Not mutually • Likely higher ratio paper anyways. Focus most likely to become exclusive. of Likes, Shares, and on more “lite” content customers. • High quality leads Retweets per reader. pieces. • Allows for more may buy regardless. • Fewer pieces means • While you may get personalized Casting a wider net less content to lower engagement engagements. lets you talk to those manage and produce. rates, net metrics • Reduces time selling who might not be • The people who are across all of your to individuals who are customers otherwise. likely to read in-depth pieces will be higher. never going to buy. • Lower cost-per-lead content are already • New and relevant • Less time and effort can result in lower interested customers. content helps SEO. to close sales. cost-per-acquisition.
REIMAGINE MARKETING 49 360 VIEW OF YOUR CUSTOMERS Technology has enabled businesses to capture customer data from an expanding number of touch points. When threaded together, the result is a more complete view of customers as they move through the purchase cycle. Gaining this 360-degree view of customers helps businesses deliver more personalized marketing, sales, and support to their customers.
Gaining a 360-degree view of customers helps businesses deliver more personalized marketing, sales, and support
SOCIAL MEDIA EMAIL Learn: User likes and Learn: Content clicked on. dislikes. Apply: Use this Apply: Marketers can show information as a proxy to popular features. Product gauge where users are in teams can fix issues. the purchase cycle.
CRM SYSTEMS TRANSACTIONS Learn: Cross-team Learn: Purchase patterns. information. Apply: Leverage purchase Apply: Sales teams can cycle for other similar follow-up on support calls customers. Determine with solutions. future purchase timelines.
50 REIMAGINE MARKETING FINANCE PEOPLE STRATEGY CREATIVE MEDIA ANALYTICS
Marketing With a 360-degree view of customers, marketers can identify demo and geo data, products of interest, where in the purchase cycle customers are, and what their purchase triggers are. Added up, this enables marketers to deliver more targeted and personalized ads.
Sales With a 360-degree view of customers, sales teams can identify purchase and usage timelines, purchase triggers, and challenges that will enable reps to follow-up with customers at the right time and offer appropriate targeted solutions.
Service With a 360-view of customers, support teams can predict and proactively address support issues, provide customized support experiences to customers, flag recurring problems for product teams, and provide user feedback to both marketing and sales.
CUSTOMER SUPPORT WEB ACTIVITY Learn: Recurring issues. Learn: Website user flow. Apply: Predict which other Apply: Provides insights customers may have similar into barriers to purchasing issues and proactively that can be leveraged by provide solutions. sales and marketing.
ADVERTISING CONTENT Learn: Messaging clicked. Learn: User interests. Apply: Determines intent Apply: Marketing can and triggers that can be deliver more targeted used by sales or future messaging. Sales can advertising messaging. engage via new content.
REIMAGINE MARKETING 51 deep dive
52 REIMAGINE MARKETING deep dive
REIMAGINE MARKETING 53 CUSTOM Tailored
Microsoft by
54 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH
Customize your marketing by targeting the right person with the right message at the right place at the right time.
bove the clut- They view advertis- ers are exactly alike right people with ter of bad ing as a tool to help – each has differ- the right message at Aadvertising people make smart- ent needs, differ- the right place and – invasive pop-ups, er purchase deci- ent motivations, at the right time. confusing commer- sions and to create and are at different Marketers who are cials, irrelevant bill- happy, loyal clients. stages in the buy- able to achieve this boards, and annoy- These engagements ing process – and can separate them- ing emails – stands come from creating their individuality selves from the clut- a class of strategic personalized experi- should be reflected ter and build stron- marketers who de- ences through every in their conversation ger, more personal, fine advertising suc- brand touch point. with brands. Tacti- and more profitable cess beyond just im- The reality is that cally speaking, this relationships with pressions or GRPs. no two consum- means talking to the customers.
REIMAGINE MARKETING 55 THE RIGHT PEOPLE your highest op- Be sure to consider on the brands their portunity custom- all parties involved parents purchase. It Audience selection ers are and which in the decision pro- is also important to The first step in adjacent audience cess. For example, think not only about creating more per- groups might pro- with their “The Man who your customers sonalized brand vide growth op- Your Man Could are today but who engagements is es- portunities. For Smell Like” cam- your future custom- tablishing who you companies launch- paign, Old Spice ers will be. Such is need to be person- ing new products, found great success frequently the strat- alizing for (a.k.a., competitive audi- in targeting women egy for targeting audience selec- ence analysis can for a men’s product. big ticket items, like tion). This process be a great way to They did this with cars, to college stu- typically involves learn about pro- the knowledge that dents who may not some form of re- spective custom- in many households have the capital to search. For exist- ers. This can range women were the ac- make large purchas- ing brands, your from purchasing tual purchasers of es while in school current customer syndicated data these products for but will soon have base will provide to combing your their spouses. Simi- a level of purchas- a great amount of competitors’ social larly, children often ing power that they insight into who media pages. have a large impact have not had before.
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Segmentation variables that affect the ability to ad- There are three im- purchase decisions dress these differ- portant factors to that we can deliver a ences through a consider when es- meaningful person- personalized experi- tablishing audience alized experience. ence. Certain differ- segments. Your seg- This differentiation ences, like creating ments should be also means that in- gender-matched differentiated, targ- dividuals do not creative, are easy to etable, and address- simultaneously ex- execute, but some able. Let’s dig into ist in multiple seg- variables may be what each of these ments. beyond your con- mean. trol. For example, a Second, you have sunscreen compa- First, your segments to be able to tar- ny may know that must be differenti- get them. While an users in the North ated. Being differen- expanding array of prefer smaller bot- tiated does not sim- data has allowed ad- tles of higher SPF ply mean that your vertisers to become sunscreen while audience segments incredibly specific customers in the have tangible dif- with their targeting, South prefer low- ferences, like male there are some in- er SPF sunscreen versus female, but stances where this but want larger and it means that they may not be possi- cheaper quantities. have identifiably dif- ble. This can often If the company does ferent purchase be- be the case with not currently have haviors and motiva- very niche audienc- different package tions. Ask yourself, es, such as targeting size options, this
“Does this segment hair care products to segmentation isn’t < need something individuals with red valuable because Differentiated different than other hair who live in Col- they do not current- Identifyably different pur- segments to make a orado, or segments ly have the ability to chase behaviors and moti- vations. Does this segment purchase decision?” where there simply address it. Brands need something different This question is im- may be no data, may also find that as than other segments to make
portant because if like a boat compa- they develop more a purchase decision? two different audi- ny wanting to run a segments, the costs < ence groups have campaign targeting of media, creative, Targetable the same purchase individuals who had and asset develop- The ability to target and iso- late each segment through process, segment- boats growing up. ment may inhibit appropriate media channels.
ing them may be their ability to indi-
< an unnecessary Lastly, these seg- vidually address all expense. It’s only ments must be ad- of their desired seg- Addressable The capacity to create a when we can isolate dressable, meaning ments. Segments personalized experience for differences in the you need to have should be large each segment.
REIMAGINE MARKETING 57 user flow
SEGMENT A
SEGMENT B
SEGMENT C
SEGMENT D
SEGMENT E
triggers
ads www
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58 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH enough that the “indicators of inter- leads should be As you acquire more performance gained est” - and assigns placed. This infor- leads and more from segmenting is a score, or grade, mation may come data, you should greater than the ad- based on those directly from the tweak your scoring ditional costs. criteria. It’s worth lead, perhaps via a to provide more ac- noting that there form where a job curate placement Lead scoring is not a standard- title or company of new and exist- While some compa- ized scoring system size is submitted, or ing leads. Don’t let nies take a narrow and that a lead may it may come from creating a perfect definition of lead have different sets proxies, like using model inhibit you scoring – a single of scores that de- website activity to from jumping in. If number to deter- termine their place- determine buying you’re waiting for mine “sales readi- ment. The result is stage. In the latter the perfect model, ness” – for our pur- a multi-dimension- case, multiple vari- you’ll be waiting a poses, we’ll take a al matrix with a cell ables might be used long time. It simply broader view. Once for each segment and weighted in isn’t that black and you’ve established that includes scor- determining one’s white. your segments ing criteria and fol- score. For example, there are two ques- low-up measures. you may look at tions that need to Depending on the time on-site, pages be addressed: what level of sophistica- visited, and specif- are the criteria to tion, these criteria ic on-site actions place someone into and subsequent to estimate buy- each segment and follow-up proce- ing stage. You may what happens once dures may even be choose to weight they’re assigned to dynamic. For ex- the act of watching a segment? The sec- ample, the criteria an overview video ond question will for a user to enter as a more significant be answered in the a buying stage may indicator of buying next sections which vary depending on stage than time on- discuss messaging, whether they are a site, which could be placement, and tim- new lead or whether used as an indicator ing. The first ques- they are an existing of interest. tion, regarding how lead moving down users are placed, is the purchase funnel There is no one cor- where lead scoring to the next segment. rect way to handle comes in. lead scoring and Scoring criteria segmentation, but Lead scoring assess- Your lead scoring having a methodol- es a set number of criteria will help ogy that is consis- variables – some- you determine into tent and rational is a times referred to as which segment great place to start.
REIMAGINE MARKETING 59 Into the cycle
Into the cycle defined action, such Once a user is placed as becoming a loy- into a segment you al user). Just like the can begin to deliver parameters that de- a more customized fine which segment experience. This may users are placed into, include promoting there should be a set different product - of of parameters that ferings based on their determines when an company size, having individual has moved a sales rep call them down the purchase if they are deemed funnel to the next to be past a certain segment. This may be point in the buying when someone clicks process, or using city on three consecu- specific images in tive email links, when ads based on where someone signs up a user lives. This may for a demo, or when also mean providing someone has been in more frequent fol- a stage for more than low-up to custom- one month. Your cri- ers who you predict teria might also out- will need additional line when to move post-purchase sup- people back stages. In port. the case where a user previously seemed Each segment should ready to buy but has represent a unique not visited the site or marketing cycle that opened any market- will be delivered to its ing emails in the last members. Ideally, this two months, it may cycle should be de- make sense to shift signed to lead people them from a “ready < How will users get placed into a down the funnel to- to buy” segment to a segment and what will happen to wards making a pur- “still exploring” seg- them once they’re there? chase (or another ment.
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REIMAGINE MARKETING 61 Start small by identifying two or three segments that will have a large impact.
THE RIGHT MESSAGE on their journey ond ad that gets There is a similar is- and deliver that ex- fewer clicks may sue when advertis- Customized mes- perience. drive more purchas- ers run multiple cre- saging es. In this case it ative versions that Based on your seg- Creative Testing would be beneficial contain multiple mentation, you can When establishing to identify the vari- variances, like head- deliver segment- messaging for your able that is driving line, color, and call- specific creative segments, it is often clicks on the first ad to-action. The result to provide a more helpful to test dif- and apply it to the is what is known as customized experi- ferent options. An second ad. multicollinearity. ence for your audi- effective method for Simply put, it be- ence. This may be this is through live CREATIVE comes impossible as complex as cre- multivariate test- VARIABLES to determine which ating completely ing. This involves ad concept, of the variables is different campaigns putting several dif- copy, style, driving the results. that are targeted ferent creative ver- photography, In the aforemen- gender, colors, to different seg- sions into market tioned situation, the call-to-action, ments or as simple and seeing which landing page, appropriate solu- as changing the performs the best. products, offers, tion would be to run call-to-action on an In order to ensure location each possible vari- online banner. Oth- the efficacy of your able combination, a er adaptations may testing, be aware of Second, try to avoid technique known as include copy ad- a few common mis- extraneous vari- factorial design. If justments; manip- steps. ables. A common there were 3 head- ulating the style of mistake with mul- lines, 3 colors, and 3 your ads; changing First, make sure tivariate creative calls-to-actions, this the photography you’re accurately testing is that ad- would result in 27 to feature different interpreting your vertisers don’t iso- ad versions. Using activities, people, data. Click volume late users, meaning this method of run- or locations; chang- is frequently used that any given user ning each variable ing the color palate; as a success met- may see multiple (such as headlines) changing the prod- ric for creative per- versions of cre- evenly against all ucts or offers being formance, but this ative. As a result, it others, the result- displayed; and even may be misleading. becomes difficult ing performance of having individual- A particular ad may to identify whether each variable can ized web experi- receive a high vol- the performance is be independently ences that feature ume of clicks but a result of the cre- assessed. Deeper different content if there is disconti- ative or of a par- analysis may also to support all of nuity between the ticular ad sequence help you identify the above. Discov- ad and the landing (i.e., if a user sees different variable er which messaging environment, there Version 1 first, are combinations that variables will best may be a really high they more likely to perform particularly help each segment bounce rate. A sec- click on Version 2). well. 62 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH
FACTORIAL DESIGN HEADLINE 1 HEADLINE 2 HEADLINE 3 CTA CTA 1 CTA 2 CTA 3 CTA 1 CTA 2 CTA 3 CTA 1 CTA 2 CTA 3 COLOR H1 H1 H1 H2 H2 H2 H3 H3 H3 Red H1 H1 H1 H2 H2 H2 H3 H3 H3 Blue H1 H1 H1 H2 H2 H2 H3 H3 H3 Orange
CLICKS ACTIONS Red 53,663 15,893 Blue 47,437 16,120 COLOR Orange 54,012 14,984 H1 46,327 14,864 H2 50,991 14,012
HEADLINE H3 60,794 18,121 CTA1 53,244 16,809
CTA CTA2 48,449 16,757 CTA3 56,419 13,431
REIMAGINE MARKETING 63 Limitations and media are more lim- The branches act as mented, the next challenges ited in their ability individualized cam- challenge is getting Based on your seg- to isolate audiences. paigns, products, or the right creative mentation, your You should try to re- segment extensions in front of the right ability to isolate and duce the fragment- that sprout and people. Currently, target your seg- ed experience that reach out from that TV, radio, print, and ments may create may occur if there base. The leaves, outdoor have the some limitations in is a high likelihood which fall off and greatest limitations your capacity to cus- that you will have regrow, are the cus- in terms of audience tomize creative. De- a lot of crossover tomized elements targeting, largely livering different ad between segments that change cyclical- relying on content campaigns, creative, and ad versions. ly, such as offers. targeting. This is not and messaging to necessarily a bad the same user can One tactic is to build thing, just some- create a confusing your campaigns like THE RIGHT PLACE thing to be aware brand experience. a tree. The trunk is of. As these media Digital media pro- a branding cam- Finding your audi- become more digi- vides strong target- paign providing a ence tized, the opportu- ing capabilities, but base that can exist With your audience nity to dynamically broadcast or print across all segments. and creative seg- serve ads based on
64 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH user data will in- involved in consum- males within a par- targeting variables crease their ability ing the media. They ticular age range like household in- to pinpoint specific sit on the couch will do so through come or people with individuals. while the TV plays in buying ads during certain hobbies (i.e., front of them. With programming that boating). Digital media – in- active media – such indexes high for cluding online, as magazines and that audience, but Digital media pro- email, and mobile – most digital – par- the ad will also be vides the most tar- has the ability to not ticipants are actively seen by anyone else geting capabilities only be very precise involved in consum- watching that show by far, including pa- in its targeting, and ing the media. They who is not within rameters like demo- it also gives adver- are turning pages, that target audi- graphics, location, tisers the ability to scrolling, and click- ence. Advertisers content, psycho- specify who they ing links. can geo-target mar- graphics, behavior, do not want to see kets with TV as well. job title, purchase an ad. This may be This is not to sug- The same rules gen- intent, and retarget- important if you’re gest that one me- erally apply to oth- ing. While mobile running different dia type is better er broadcast media, devices are lagging campaign creative than another. In like radio; however, behind computers targeted to different fact, most research radio is much more in their use of data segments and don’t suggests that touch geo-based due to to target users, they want any crossover. points across differ- the limitations in ra- are quickly catching ent multi-sensory dio broadcasting. up. Media selection media is the most When choosing effective approach, Out-of-home me- what media to run, so when planning, dia – including bill- THE RIGHT TIME it’s important to you should consid- boards and transit consider not only er the purpose, user ads – target based Appropriate mo- the targeting capa- context, and usage on location. Out- ments bilities but also how of each medium as of-home publishers As targeting has your audience is us- it pertains to your have data that esti- evolved and be- ing the media in re- advertising. mates the amount come more precise, lation to your prod- of views an ad will it still has its draw- uct and creative. Targeting param- receive based on a backs. One major Media are classified eters given location and drawback is that as passive or active Different media sometimes can even timing is often ig- (although there is have different tar- estimate other pa- nored. Before the a spectrum). With geting capabilities. rameters, such as mass-adoption of passive media – such For TV, targeting how many of those cookies and a mil- as TV, radio, and is largely content viewers are men. Lo- lion different target- outdoor – partici- based. Advertisers cation can often also ing parameters, ad- pants are passively seeking to target fe- be a good proxy for vertising was largely
REIMAGINE MARKETING 65 content targeted (and much of it still is). While The right frequency this may not be as precise as cookie-based tar- For many marketers, the topic of optimal ad fre- geting, it provides the benefit of having adver- quency is a bit of a black hole. While most rec- tising that is adjacent to relevant content. This ognize the importance, not many understand means that when your ad is viewed, it is viewed how to establish or apply a value. Optimal ad by someone who is thinking about a related frequency will vary depending on the medium, topic. Much of today’s advertising identifies an media mix, brand history, product category, and impression, identifies the user, and delivers the competition. appropriate creative, independent of experience. A young mother might be the perfect target for Brands need to be conscious of how frequently diaper ads, but if she’s enjoying her few minutes they’re serving ads to a particular individual, es- of personal time by catching up on some news pecially with highly customized messaging. There in the evening, baby products might be the last are many stories of brands spamming individu- thing she wants to think about. Now that we can als with retargeted product ads, which becomes identify users all over the web, we need to make a turnoff after a point. Be sure to frequency cap sure that we’re reaching them during appropri- your delivery both per day and per campaign. ate moments. Delivering high volumes of ads to an individu- al who has not responded to any previous ones Customer lifecycle will hurt both performance and ROI. These ads Beyond targeting appropriate moments, under- would be more effective being used to expand standing the customer lifecycle is a key timing your reach to new prospective customers. issue. If you understand your pre- and post-pur- chase timelines, identifying where a customer Evolving customer demands is in the lifecycle can be incredibly powerful in Customers are more empowered than ever be- helping to provide the right information at the fore and expect faster and faster responses from right time. One of the best ways to get this in- businesses. Having a strong understanding of formation is to look back at data from customers the customer lifecycle, both pre- and post-pur- who have already purchased products. Several chase, can go a long way in helping to meet these examples of companies employing this method- demands. For example, being aware of frequent ology have made headlines, including a father post-purchase support issues, companies can who was livid at Target for mailing maternity ads deliver timed support to customers. Or if a cus- to his daughter only discover that Target had tomer does call for support, based on their pur- identified that she was pregnant before he did. chase timeline the support team can predict and
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proactively direct the call to a team member who specializes in the predicted issue.
BRINGING IT ALL TOGETHER Once you’ve identified your segments, QUICK have decided how users are placed into each segment, and determined what the follow-up for each segment is, you’re on your way to more strategic marketing plan- ning - targeting the right person with the tip right message at the right place at the right time. Each of these targeting tactics is important, but they are useless if not used together. Having segments is meaningless Use email to help determine without a way to address them individually. which buying stage your Customized creative is useless without the ability to target the media. And all of these leads are in. Provide different efforts will be futile if you’re not in front of stories targeted different your customers at the right moments. buying stages. Using links as Start small proxies - called indicators- Creating a campaign that is simultaneously customized yet integrated can be an intim- of-interest - you can idating challenge. And doing it well is hard. segment users based on But you don’t need to start at the end. If which content, or clusters of you are just beginning to collect leads, having multiple segments may be over- content, they’re clicking on. kill. Start small by identifying two or three segments that will be highly impactful and build from there.
REIMAGINE MARKETING 67 The caveat to start- tunately, there is no Bad assumptions Privacy ing small is that you magical formula to As is the case with As data collection should have a vision balance form fields all analytics, be care- grows, so do con- for where you want and data points. ful of making bad sumer concerns. to grow to. If you Over time, new data or biased assump- There is a line plan to build up to can help inform tions. Being deep- across which help- multiple segments, these decisions and ly ingrained in our ful customization it’s helpful to iden- help make your al- brand and products, turns into creepy tify those criteria gorithms stronger. we often overesti- stalking. Unfortu- and start gather- mate how interest- nately, this line is ing that data at the Building upon itself ed others are. In the different for every- beginning, even if Having a plan is im- behavioral sciences, one, so brands must you’re not going to portant, but once clinicians look for use caution in how use it initially. While you’ve established “behavioral clusters” they’re leveraging you can certainly a plan, be flexible to identify different data and personal- add new parame- and let your pro- feelings. For exam- izing. It is common ters down the line, gram build upon it- ple, a common sign practice to enable it’s more difficult if self. As good as the of lying is touching customers to opt- you’ve got a large best third-party data ones nose or ear. That out of behaviorally number of leads with is, actual usage data does not mean that targeted advertis- no data. from your custom- every time someone ing. Brands should ers will be your best touches their face also be sensitive to The balance source of accurate they are lying. They the frequency with The art and science information. Use this might simply have which they are hit- of data collection is data to go back and an itch. But when a ting customers. An a delicate balance. revise existing as- face touch is clus- excessively high While adding data sumptions and algo- tered with diverted number of high- fields is likely to pro- rithms. If you’re col- eyes, a restless leg, ly targeted ads can vide more accurate lecting lead data, set and crossed arms, make a customer data than using prox- lead volume param- the probability that feel uncomfortable. ies, be aware that the eters for introduc- you’re hearing a lie Brands should set more data fields you ing new segmenta- increases. The more their campaigns request from peo- tions. For example, reference points with the ability to ple, the lower your if you are currently you get to support stop delivering ads completion rate will segmenting by gen- an assumption, the to a customer once be. Conversely, us- der but not age, you more likely it is that they have moved ing less data fields may determine that your assumption is into a new segment may give you more once each segment correct. Of course, (i.e., once a custom- leads, but using ac- reaches 200,000 you need to quanti- er has purchased a tion triggers as prox- leads, you will add in fy where to draw the product, stop serv- ies presents its own the additional seg- line between possi- ing them ads to buy challenges. Unfor- mentation. ble and probable. that product).
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To sum it all up ing into a smooth what’s working and tomer experience Effective segmenta- strategic operation. what isn’t. This visi- that will help deliver tion and targeting It will improve per- bility will allow you happier customers can turn a guessing formance by giv- to provide a more and stronger rela- game of advertis- ing you insight into personalized cus- tionships. --
REIMAGINE MARKETING 69 0 107.7 108 200.5 Ms F Microsoft Forefront
88 200.2 T Tatarinov AWARENESS DECISIONS MEMORY LOVE 70 REIMAGINE MARKETING REIMAGINE MARKETING 71 90 232.04 Th Thorium
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ow does the mind work? For thousands of years, this question has been at the center of Hconversations in philosophy, religion, psychology, sociology, biology, and neuroscience. While there is no shortage of hypotheses, there are relatively few concrete answers. But over the last 20 years, advances in brain imaging technology have provided us with an unprecedented look into how the brain works, mechanically anyway.
Using the results of decades of behavioral research by psychologists, scientists are gaining a clearer picture of how the mind works, what motivates us, and the rationale behind our seemingly irrational behaviors. As marketers, we can leverage this information to help our customers make better decisions and build stronger relationships with them.
Behavioral economics and neuroeconomics
In 2002, the field of economics was shaken up when the Nobel Prize in Economics was awarded to Daniel Kahneman, a psychologist. This practice of merging economics and the behavioral sciences has become known as behavioral economics. While this area of study has been around at least since the mid-1900’s, Kahneman’s achievement added a needed level of
REIMAGINE MARKETING 73 legitimacy to the field. But what exactly is behavioral econ?
Behavioral and neuroeconomics are both inter- or trans- disciplinary fields, uniting economics with the behavioral sciences and neurosciences, respectively. They developed as a method for explaining some of the inconsistencies seen in traditional economic theories. Economic principles would suggest that given two options of different values, people will pick the more valuable option. However, multiple studies have shown people don’t always do this. Why not? Eric Johnson’s research out of Columbia University is a great way to illustrate this. He offered a lot of inconsistencies between How we process information participants the option of taking economic theory and real world $50 today or $52 in 2 weeks. behaviors. Behavioral economics While we’d like to think that we Based on pure economics tries to find patterns and consciously control of all our and the interest that could be explanations for these economic thoughts and decisions, the truth earned on $50 over 2 weeks, inconsistencies. Neuroeconomics is that most of our decision are taking the $52 in 2 weeks would takes this a step further and made reactively and come from be much more profitable. But in tries to uncover the underlying a subconscious level. While this general, participants chose the neural-processes behind these may seem like a bad practice, it is $50 today. Interestingly, when patterns in an attempt to actually an evolutionary trait that he changed the time frames understand why we, as humans, helps us conserve energy and to $50 in 2 weeks or $52 in 4 do the things we do, even when keeps our attention available for weeks, removing the immediacy they appear irrational. larger dangers. from the equation, participants generally choose $52 in 4 weeks. What we’re seeing here is known as time inconsistency and a present bias in the way people make decisions. Economics is an important field; however, it has one fatal weakness. Economic principles SYSTEM 1 SYSTEM 2 are based on the flawed assumption that people act Fast thinking, Slow thinking, rationally. As a result, there are automatic, and unconscious conscious, and complex
74 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH
our messages are perceived accurately? We place a large emphasis on the message yet not enough on how that message is being received, especially when the receiver is an individual who has much less experience and interest in our products than ourselves.
There are two ways that our so, good job! You answered this We’re going to explore these brains process information, like most people. Unfortunately, topics in more detail today to classified as System 1 and you’re wrong. Moses took no provide a lens into how our System 2. System 1 – commonly animals on the ark, Noah did. minds and our customers’ referred to as fast thinking – is Our System 1 brain tries to minds work. There’s a great automatic and unconscious. find the quickest and simplest quote by historian Edward It’s involved in tasks like answer possible, and because of Gibbons that says, “The wind facial recognition and typing the biblical relationship between and the waves are always with (assuming you’re decent at Moses and Noah, no red flags the ablest navigators,” meaning typing). If you’ve ever arrived at are raised. that if you understand how work with no recollection of the the wind and the waves work, drive, you can thank System 1. System 1 is incredibly you can navigate through System 2 is our slow thinking. It powerful, and optical illusions any waters. Although this involves deeper, more conscious are another great way to will only be a glimpse into thought and is critical in tasks demonstrate their power over the world of behavioral and like solving complex math System 2. In the image above, neuroeconomics, we hope problems or puzzles. all of these horizontal lines are to leave you with a few tips parallel. Even knowing this, it is that you can implement It’s easy to see these two incredibly difficult to perceive immediately, as well as with systems at work. Answer the the lines as parallel. some understanding of following question: How many the wind and waves of the animals of each kind did Moses As marketers, we need to behavioral sciences. Through take on the ark? consider this. If accuracy is this, we hope to inspire you distorted by perception, what to re-examine your customers Did you come up with two? If do we need to change so that under a new light.
REIMAGINE MARKETING 75 A LITTLE SCIENCE HUMOR
Sir Isaac Newton and Charles Darwin are sitting under a tree when an apple falls on Newton’s head, to which he exclaims, “This is gravity. This is why the apple fell.” Darwin corrects him and says, “Actually, apples used to fall in all directions; however, only the ones that fell to the Earth were able to reproduce and survive.”
Awareness and attention article also touches upon patterns can be found in our something tied very closely to System 1 and System 2 thought In a fun yet powerful editorial, human behavior and the way processes. a contemporary Greek we process information. Even archaeologist (author unknown) before we’re born, our brains are Reality vs. Perception wrote a piece from the hardwired to find patterns, and perspective of an archaeologist we do this aggressively and often The Parthenon is an amazing from the distant future who unconsciously to the point where building. The ancient Greeks, has dug up our society and it becomes very easy for us to back in the 400s BCE, was decoding what it all meant. find patterns where none exist. realized that if they built this He talks about how it was a building to spec it would look society where obesity must The Evolutionary Link disproportionate. It would have been a sign of high social appear curved, the columns status, signaling how everyone Every day we’re exposed to would appear to be bowed and strived to be heavy. He noted patterns in the physical world of different sizes because of a society that built large that have been crucial for our the way the light shone around fertility monuments around survival. We understand that them. So they built a curved the country and how we must heavy things fall to the ground. structure and made columns have worshiped golden arches We understand what happens different sizes so that when it because they were displayed when something is thrown. We was done, it would appear to high in every town and on all also learn really young what be in perfect proportion. As major roadways. our parents look like angry and marketers, we need to consider to avoid them at all costs. In this. If accuracy is distorted by The article was written with the business world, patterns perception, what do we need to a humorous tone but was may affect investment choices, change so that we’re perceived also a cautionary tale of our willingness to take on risk, accurately? We must put more the assumptions modern and how we choose between attention on how a message archaeologists make. This two items. The roots of these will be received, especially by
76 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH someone who has a whole lot He suggests that we “Make it less experience and interest hard to use wrong. You want than ourselves. to make the right way to use it, the easiest way to use it.” When speaking to customers, When translated to marketing whether via advertising, emails, and communications, simplicity reports, or face-to-face, it is is deceptively difficult. It’s incredibly important that we not easy. Perhaps that’s why create materials that can be shortcuts, like replacing simple interpreted by System 1. The with small or short, are taken. first step here is to simplify. But But its importance is critical. let’s really consider what this means. Information Overload
Simplify Another way that simplicity and attention are killed is through A 2013 stat from Kissmetrics information overload. There are that said Facebook posts with dozens of case studies showing less than 80 characters had how great concepts were 66% higher engagement. And destroyed because marketers while this may be the case, this put their own agendas in front statistic is slightly misleading. of consumers in a way that was While brevity is often a result really counterproductive. They of simplicity, they are not the say, “Here’s what I want people same thing. While the concept to know about my product,” of simplicity may not be a novel and then they shove every detail one, few people do this well. about it onto a page. And then As this stat would suggest, the legal adds 6 lines of copy. We’ve concept of simplicity has been all seen it. misunderstood. Simplicity does not mean brief or minimalist. When information is too It does not mean faster or complex our System 1 shortcuts. In fact, when building processing shuts off, and unless the Parthenon, it took much it’s extremely interesting to us, greater complexity to create our System 2 processing will a more simplified visual likely never engage. This is not IF ACCURACY IS experience. Simplicity, with to suggest that an ad needs regards to communication, to be distilled to one idea and DISTORTED BY marketing, and product one idea only. There is a lot of PERCEPTION, WHAT development, means obvious great advertising that shows DO WE NEED TO and effortless to understand and off multiple features. But the use. In a great quote, Timothy purpose of a single ad is not CHANGE SO THAT Prestero said that “There is no to tell consumers everything WE’RE PERCEIVED such thing as a dumb user. about a product in one instant. ACCURATELY? There are only dumb products.” Consider walking into a camera
REIMAGINE MARKETING 77 store and immediately having a the others?). The more of the However, we don’t see many sales rep rattle off information pattern you see, the more it will brands leveraging existing about apertures and shutter stand out to you, and you will patterns or trends. Brands create speeds before you figured eventually develop a preference hashtags with the hope that out what type of camera you for it. In psychology, this is called they’ll trend. Why don’t they wanted. the Mere-exposure effect, or the create posts using hashtags that familiarity principle. This is one of are already trending? Research You need to establish your the simplest pieces of marketing has shown that these increases goal – is it attention, awareness, advice from psychology. Create both exposure and clicks. It’s interest, or desire? While you branded materials, including a very simple thing to do, yet may want your customer to your advertising, so that even very few brands seem to taking know all these things about your without your logo or product, advantage. product, remember that the it is immediately recognizable. more that you cram in there, the When someone sees a TV spot, a Pattern Disruption less that’s going to be read. By package, a print ad, your website, trying to tell them ten things, and then your store, it should The flip side of pattern you lose the opportunity to tell already be familiar. recognition is pattern disruption. them even one or two. If you live on a busy street, One of the places we have you’ll likely find that you now The Power of Patterns seen people start to take barely notice the street noise advantage of this concept is that once kept you up at night. As we appeal to our System with trending topics on Twitter. When stimuli is unchanging, 1 brain, we come back to the In this instance, software is we stop noticing it so we can importance of patterns. Patterns being used to help consumers focus on other things. This is call can draw attention in two ways: identify these patterns. It habituation. But even though pattern recognition and pattern allows brands to organize we may not be consciously disruption. We’ll start with their content for consumers. aware of this stimuli, our sensory pattern recognition. #WednesdayWorkout. system is still in tuned to the #tipoftheday. This is a great patterns around us. When an As you look at the people to the way to build a hierarchy. existing pattern is disrupted, right, some of the individuals Setting expectations is great for it triggers our brains to pay should start to stand out. increasing customer engagement. attention. Biologically speaking, Your brain is recognizing the consistency between a series of these images and trying to identify a pattern between them. (For example, the man in the orange shirt and green pants is standing in every 4th position (with one exception. Can you spot it?). More subtle, everyone wearing light blue is also wearing sunglasses and people with hats also have text on their shirts. Can you find
78 REIMAGINE MARKETING CUSTOM TAILORED THE SCIENCE OF RELATIONSHIPS FAILURE TO LAUNCH this is a huge asset to human out by wearing a red dress, or evolution and survival. If you perhaps you’ll be the one guy see a normally friendly animal at a bike race riding a unicycle. start charging at you, it’s As more marketing has become going to spark a reaction that, “in your face,” consumers are RECAP “Something is different here. becoming habituated to it, Perhaps I should pay attention.” which causes advertisers to find 1) The brain has even more invasive ways to get two primary ways of As we look at these objects, their attention. Ads that would processing information, several of them seem to have caused a riot in the 1950s System 1 and System 2. stand out very quickly. They are now easy to ignore. are different from the others. Visually speaking, people tend What people do continue to 2) We should appeal to to notice differences in color, notice are ads that disrupt contrast, orientation, size, and existing patterns or our System 1. motion. As subtle of a difference paradigms of the world as as they may seem, these vertical we view it. We’re drawn to 3) In order to do so, we lines and these diagonal lines them because we know what are processed and stored in two they’re supposed to be, but must simplify. different parts of your brain. We when they don’t quite fit our also respond to noise volume or expected pattern, this causes a pitch changes, timbre changes - large disruption in our minds. 4) The brain is for example if you were hearing We’re questioning what we programmed to identify crowd noise and then suddenly believed to be true and now patterns. heard a baby cry – pressure we’re frantically try to identify changes and even scent or a new pattern. While these balance changes. If you’ve ever examples may not be the most 5) We can use pattern experienced an earthquake, you “in-your-face” ads, they are the recognition or pattern can probably attest to this. type of ads that we, as humans, disruption to increase generally pay the most attention awareness and attention. Redefining Disruption to as we try to understand their patterns. Disruption seems to be a popular theme these days in How memories are made advertising, and it seems to increasingly be defined as “to Boston is notorious for having disrupt or disturb.” If you want confusing streets that seem someone to notice you, there to follow no direction or are a few ways to go about pattern. The local lore offers doing this. You can walk up to one explanation. It is believed them and punch them in the that this goes back to some of face. They’ll definitely notice the earliest settlers when cows you. They may not like you, but used to roam the area, walking you’ll have accomplished your back and forth. Depending goal. Maybe you’ll try to stand on the location, topography,
REIMAGINE MARKETING 79 and obstacles, certain walking of mice. So far, the largest piece a permanent path, you could paths and cow paths became that they’ve been able to recreate try a few things. First, you might established. These paths become from a mouse is about the size of send a stampede of cows. While it covered with cobblestones and a grain of salt. Part of the reason might not be permanent, it would eventually paved over. This why they have only been able definitely create a more solid process, in a sense, is just how to recreate this much is because path than a single cow. Within the memories are formed in the this “grain of salt” is so complex brain, we can see that the intensity brain. that it took 100 terabytes of data, of exposure has a large impact or roughly 25,000 HD movies, to on the encoding of memories. Our brains are made up of map. The higher intensity, the likelier 100,000 miles of nerve fibers, we are to remember an event. called white matter, with each When we receive a stimuli, We see this a lot with traumas. neuron of the brain having whether visual, auditory, or other, But probably the best way to about 10,000 synapses where a signal is sent through these establish permanence is to have nerves connect and transport nerve fibers in the brain. This a consistent stream of foot traffic information between them. is the neurological equivalent down a given path. The path will To give you a sense of just of sending a cow down a dirt get patted down faster than it how complex the brain is, new road. If we send one cow down can regrow. Repeated exposure research by Jeff Lichtman at a new path only one time, it’s over time is the most successful Harvard is allowing scientists unlikely that the path will become approach for successfully creating to build 3D maps of the brains permanent. If you want to make memories.
paragraphs, bullets. We can mirror these communication styles in our correspondence. It can help AnyoneMirroring who’s ever read about build comfort and trust, as well social psychology or body as help put your information language knows that mirroring in a format that they’ve a person’s body language is selected as easy to understand. a great way to build rapport, comfort, and trust. A lot of this has to do with familiarity. But as a thought starter, this is a principle that can be applied to other forms of communication. For example, people structure emails in a way that they believe is easy to understand. Some people use short lines, long
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Optimal frequency Multisensory Stimuli
This issue of repeated exposure, One of the biggest variables STUDENTS PERFORMED awareness, and memory brings regarding memory is sensory BETTER WHEN THEY up a common question: “What input. Cognitive psychologist SAW PICTURES WITH frequency should we be using in Richard Mayer is the leader in ORAL NARRATION our advertising?” (And perhaps this field, and what his research its sister question, “How much shows is two-fold. First, not VERSUS WHEN THEY content do we need to produce all sensory inputs are created SAW PICTURES WITH for our content marketing and equal and second, multisensory TEXT ON PAGE, WHICH social media?”). Frequency affects environments are best for CAUSED A DUPLICATION a lot of things, including reach, creating memories. IN VISUAL EFFORTS. ad spend, and resources needed. Now the answer, of course, is a We have many different big “it depends.” It depends on senses, more than the five difference, students performed the impact, history, exposure we’re used to hearing about: better when they saw pictures type, context…even competition sight, sound, smell, taste, and while hearing oral narration and messaging tiers. But in touch. Some say as many as versus seeing pictures with text trying to decode this question, 20 or so, including balance, on the page, which caused a one of the things we look at temperature, acceleration, and duplication in visual efforts. We is the Forgetting Curve, which time. Of our senses, vision is don’t read words on a page, per was developed by psychologist by far the most powerful when se. Our brain actually processes Hermann Ebbinghaus to model testing variables like recall individual letters and words as how people forget information. and recognition. When we little pictures, not unlike as if we What we see is that over time, create multisensory stimuli, were looking at a photograph. information is forgotten but the impact is even greater. with repeated exposures, with This was originally considered These insights have been put information re-input over time, a contradictory finding. into practice by education our memory decay rate, or the Researchers originally thought software companies like Rosetta rate at which we forget, reduces. that increasing the amount of Stone, and they provide an Several studies have shown information individuals were important insight for marketing that within 3-6 days we forget receiving would cause a sort and communications. Adding about 90% of new information. of overload, but the opposite multisensory inputs makes Some researchers believe that happened. It’s like having a exposure more impactful, this happens even faster, after herd of cows walking in unison. especially when one of those about 24 hours. But in general, Because these systems process elements is visual. This research what appears to be accurate is information in different areas strongly validates the impact that there is a significant increase of the brain, they acted in a of media like television as well in memory decay rates when complimentary manner and did as some digital formats that exposure gaps exceed 3 days, not conflict with each other. can be visual, auditory, and meaning that to increase your This concept is an interesting even interactive, while others, chance of being remembered and one to consider, because when such as radio, don’t fare as well to stay top of mind, brands need overlapping sensory input were under this lens, as memory with to be in front of their consumers involved, performance was auditory input was one of the at least once every three days. not as strong. To illustrate the worst performers.
REIMAGINE MARKETING 81 TYPES OF MEMORIES DECLARATIVE NON-DECLARATIVE Memories that can be consciously Memories that can’t be consciously recalled, such as facts and statistics. recalled, such as how to ride a bike.
SEMANTIC EPISODIC Factual information Observational information that is independent of from a specific event, experience, such as state including the memory capitals, vocabulary, and of boarding a plane or object names. attending a party.
Context matters the logically structured words A great deal of research typically remembers about shows that in a social setting, Now there is one other way 40% more. What becomes people are much more likely to help ensure a permanent important here is applying to remember someone’s path, and that’s to build new information that builds name if they get it later in the something next to a similar on top of old information. conversation, as opposed to up or complimentary existing People need to understand the front, once they’ve established a establishment. When we can general concept before they framework for who that person add context and meaning to can understand the details. is. We need to ease into things, things, they become much There a great quote by John especially when they’re new and more memorable. Much of Bransford that says, “Experts unfamiliar. Build a foundation this relates to our ease of ‘knowledge is not simply a of knowledge first, then provide processing information and list of facts and formulas that details. pattern identification. When are relevant to their domain; we test two subject groups instead, their knowledge Types of memories with the same list of words, is organized around core one randomly ordered and concepts, or ‘big ideas’ that Memories can be classified as one in a logical, hierarchical guide their thinking about declarative and non-declarative. structure, the test group with their domain.” Declarative memories are
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memories. Because at the end of the day, this is what products and services really are. They are experiences. RECAP Choices and decisions
We’re going to conclude by talking about decision making. What drives our decisions is 1) Several variables an incredibly complex topic, affect memories, such as because it deals so heavily with repetition, impact, context, the complexities of human and sensory input. behavior.
Case studies from developing parts of the world have 2) Spaced repetition is delivered some interesting the best way to form insights on choices. In many memories. of these regions, consumers are shifting from having a very limited number of options to having a plethora of options. 3) Brands should be in Generally, options and free choice are a fundamental front of their consumers at part of a free market system. least once every 3 days. things that can be consciously Choice is important. Choice is recalled, like facts. Non- good. But in these developing declarative memories are regions, this shift to having 4) Using multisensory unconscious memories, such a large number of options as how to ride a bike. Within ends up causing great distress inputs help memory, declarative memory, we have for many. People are quickly especially when including semantic memories, such overwhelmed. In an interview visual stimuli. as recalling statistics, state with a subject in rural India, an capitals. Episodic memories older gentleman became irate tie back to an experience or explaining how he couldn’t event, such as telling someone understand the logic behind 5) Provide context and about your day. Think of this needing five different types of meaning to information as reliving past events. While bubblegum. before providing details. there’s certainly an abundance of semantic knowledge in People in the developing world our brain, marketers want to are not used to seeing five provide and evoke episodic types of gum. But for those of memories. Experiential us in developed parts of the memories. Emotionally charged world, we’re used to seeing
REIMAGINE MARKETING 83 SATISFICING MAXIMIZING
EXPLAINED EXPLAINED Alternatives are evaluated Alternatives are evaluated until a minimum acceptable to determine the best threshold is met. possible outcome.
MINDSET MINDSET What has the lowest chance of What is the best possible being bad? option?
USED BY USED BY General consumers, non-elites, Elite users, high-risk low-risk decisions decisions
THE SCIENCE OF RELATIONSHIPS THE SCIENCE five types of peppermint gum prefrontal cortex is more along OF RELATIONSHIPS THE SCIENCE OF RELA- TIONSHIPS THE SCIENCE OF RELATIONSHIPS among 30 other options. And the lines of that friend that’s THE SCIENCE OF RELATIONSHIPS THE SCIENCE it doesn’t faze us. To start, we always telling you to take better OF RELATIONSHIPS THE SCIENCE OF RELA- TIONSHIPS THE SCIENCE OF RELATIONSHIPS probably already have a “go- care of yourself. When you see THE SCIENCE OF RELATIONSHIPS THE SCIENCE to gum.” We don’t need to a cookie, you get a devil on one OF RELATIONSHIPS THE SCIENCE OF RELA- TIONSHIPS THE SCIENCE OF RELATIONSHIPS research nutritional facts and shoulder saying, “This is going to THE SCIENCE OF RELATIONSHIPS THE SCIENCE flavor profiles every time we buy taste great!” while on the other OF RELATIONSHIPS THE SCIENCE OF RELA- TIONSHIPS THE SCIENCE OF RELATIONSHIPS gum. Secondly, we’ve developed shoulder, the angel is saying, THE SCIENCE OF RELATIONSHIPS THE SCIENCE a system for dealing with these “Yes, but that cookie is high OF RELATIONSHIPS THE SCIENCE OF RELA- TIONSHIPS THE SCIENCE OF RELATIONSHIPS types of simple decisions. in calories and sugar.” When THE SCIENCE OF RELATIONSHIPS THE SCIENCE researchers take healthy and OF RELATIONSHIPS THE SCIENCE OF RELA The neuroscience of decision unhealthy eaters and present making them with junk food, they see CONSUMERS much greater activity in the There are two key brain parts dorsomedial prefrontal cortex GENERALLY involved in making decisions. of those individuals who are PURCHASE THE The ventromedial prefrontal healthy eaters. It’s part of the cortex is that friend who’s EASIEST OPTION science of why “cheat days” work always drunk and trying to get for many dieters. While they’re THAT HAS THE you to go to Vegas. This area indulging in eating sweets, HIGHEST CHANCE OF of the brain is tied to emotions, by structuring it they are still and this is where information NOT BEING BAD activating this “responsible” part is organized and decisions of the brain in doing so. are made. The dorsomedial
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Satisficing you’ll feel horrible for them. If second group, doctors were a friend buys a 1992 Daewoo told that there were actually What we ultimately learn and it breaks down, you may two medications that they from this is that many of our try to be empathetic, but will hadn’t tried yet, Ibuprofen and decisions are made much probably feel like they had it Piroxicam. Based on economic more unconsciously than coming. We don’t want to find theory, since the odds of perhaps we’d like to admit. ourselves on the wrong side of a non-surgical treatment We do not try to maximize a bad decision, so we stick to had gone up, we’d expect our outcomes, but we try to safe options. that these doctors would be minimize energy expenditure, more likely to recall these and when decisions become This desire to minimize effort in patients and recommend the too overwhelming, we try to decision making is not isolated medication, but they were avoid them. General consumers to trivial decisions either. In actually about 1/3 less likely do what’s referred to as fact, we see something even to do so. As decisions become “satisficing.” In essence, they more fascinating when choices more complicated, we become go with the easiest option become more significant: we more likely to choose default that has the highest chance avoid making them. A study options. This is an amazing of not being bad. Or causing was done in Europe a few years notion to think about if you them the least distress. We back and it found that the have a high consideration use heuristics, patterns, and biggest predictor in whether or purchase. Sheer complexity rules of thumb to help make not someone would elect to be may be preventing someone quick decisions. We value an organ donor was whether from making a decision. How comfort, reduced risk, ease of the options were to opt-in can marketers remove this use, and social perceptions or opt-out. Regardless of the barrier? Focus more attention over getting the best possible option, people generally didn’t on reducing the transactional outcome. You can buy very select either one. It is generally costs involved in making these high quality TVs today for very assumed that a default option decisions. little money, but brands like is what other people choose Samsung and Sony continue and therefore it is an easier Maximizing to do well, because even if and lower risk choice. In a now they’re not the best value for famous study out of Princeton One group of users is the the dollar, they’re most likely and the University of Toronto, exception to this satisficing not going to break. There are researchers studied treatment rule: elite users. These users also social implications with decisions for patients. Doctors, will try to maximize their choices. People do not want to after trying all available experience. If we take fashion have to defend their decision medicines to alleviate pain, as an example, people of to purchase an off-brand referred patients with hip higher socioeconomic groups product. People try to reduce pain to an orthopedist. After do much more active research this social unease and stress, making the referral, they were on fashion, via magazines which is what makes popular told that they hadn’t tried a and the Internet, and they items so appealing. Nobody simple option, Ibuprofen, and seek clothes and brands that questions your decision if you they were told that they could separate them from everyone buy Nike shoes. If a friend call the patient back to try else. In contrast, middle- buys a new Toyota and for this treatment if they wanted. income individuals tend get some reason it breaks down, Most of the doctors did. In a fashion advice from peers
REIMAGINE MARKETING 85 and have a higher tendency music. Chances are you will general consumers - as separate. to rely on more passive have never heard a single one Instead, they have been molded media, like television. They of these artists. They are the into product adoption models. generally choose fashion that tech geeks of the music world, Early adopters. But the truth is will help them fit in. Low- actively searching out the next that not all products follow this risk. We see this with other big thing. And these music elites lifecycle. Nor do they need to. industries. Technology has its probably scoff at pop music. Many products that elite users early adopters, who are active love will never become mass researchers, compared to the Our own worst enemies marketable. On the flip-side, general tech consumer. We one of the most brilliant things see it with music. Try going There are two issues that arise about the Wii was that at the into a record store (if you can out of this information. The time when Sony and Microsoft find one) and ask the staff to first is that marketers seldom were completing heavily for recommend some good new treat two groups - elites and elite gamers, Nintendo went
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after everybody else. The Wii target audience. Just like the going to know how to use it. didn’t have to be adopted music store manager, people by elite gamers before it was who are in an elite consumer One of the areas this has ready for mainstream. Now, category are generally a very hit hardest is with creative although Sony is still focusing small percent of users and work. Creative work keeps primarily on elite gamers, the make decisions based on very being inflated to a state of Xbox has become a much more different criteria than general oneupmanship, where we ubiquitous machine. consumers. If a software try to make creative that engineer who went to school is more abstract, cleverer, The second complication for engineering and spends and wackier than before. arises when marketers or 40-50 hours a week designing Phenomenal artists heed the product developers fall on this and building software builds calling of Picasso to make art spectrum. This is especially a product the way he would in a way that has never been prevalent when they are the like it, no general consumer is experienced before. Which
MICROSOFT 2 197.5 G PERIODIC TABLE Gates 5 198.5 6 201.2 7 200.9 8 20.12 9 199.2 10 198.9 0 197.5 Atomic Weight Wn Rt Se Ei Ac Of Windows RT Seven Eight Access Office Ms Chemical Symbol 13 200.7 14 200.1 15 201.1 16 200.0 17 199.1 18 198.3 Microsoft Name Vi Xp In Ph Pu W Vista XP Intune Phone Publisher Word 28 198.9 29 200.6 30 200.1 31 200.9 32 200.9 33 199.5 34 201.2 35 199.5 36 198.5 Mp Sq Ad Hl B M Mn S Md Ex MapPoint SQL adCenter Halo Bing Maps MSN Surface MS-DOS Excel 46 201.0 47 199.3 48 201.3 50 200.9 51 201.2 52 201.2 53 201.2 54 201.2 55 199.0 Cs Az Ec O St Cv Ar Wd Pr Pp CAL Suite Azure Exchange One Store Cover Arc Wedge Pro PowerPoint 78 199.5 79 200.1 80 201.0 81 201.1 82 201.4 83 201.1 84 200.7 85 201.4 86 199.7 Ip Vs Sp Kn Sk C Lm Od Nk Ol InfoPath Visual Studio SharePoint Kinect Skype Cortana Lumia OneDrive Nokia Outlook 110 200.0 111 200.1 112 200.2 113 232.04 114 232.04 115 232.04 116 232.04 117 232.04 118 200.3 Sv Sc X Sd Cd Mo Re I R On Server System Center Xbox Studios Cloud Mobility Reimagine Innovation REIMAGINERedmond MARKETINGOneNote 87 for art, is a beautiful thing. But context that help define our not simple? If you go to there’s a reason why Katy Perry experiences. McDonald’s around 5pm, you’ll outsells Esperanza Spalding. see something amazing. At a They’re both great artists, but In a popular experiment, wine leading establishment in an Katy Perry makes music that bottles were randomly assigned industry that’s defined by quick is very accessible to the most a price. Participants were then service, you’ll see an empty people. asked which wine they preferred. restaurant and a drive-thru line Participants generally chose the around the building. What’s the Experiences wine with the highest perceived experience people are buying? value. The perception defined It would be much quicker to run We’ve talked about attention. the experience. Can you taste inside and order. But perhaps We’ve examined how simplicity, the difference between red comfort is more important than patterns, and familiarity can and white wine? What about speed. draw attention and build if you were blindfolded? preference, and we’ve talked Congratulations, pretty much Dual representation about memories and how any wine drinker can. But repetition and information consider this. In tests with What is one thing that separates hierarchies make things easier experienced wine tasters, when humans from all other species? to understand and remember. white wine was colored to look Is it our ability to reason, Now that we’ve addressed like red wine using a flavorless use tools, or language? In these items independently, dye, these veteran wine tasters fact, these are all things that we can now examine how described the wine taste using animals can do quite well. What attention, memory, and red wine characteristics. To separates us is much more decision making are all deeply them, it tasted like red wine. We fundamental. It’s a principle intertwined in the overall need to stop selling products called dual-representation. Dual- human experience. as numbers and facts and start representation is our ability to selling them for what they are, assign multiple meanings to a As we’ve discussed, memories experiences. symbol. While this may not seem can be classified in a number that remarkable, it’s what allows of different ways: declarative I think most, if not all, people dots on a page to create music, and non-declarative; semantic here would agree that our squiggly lines to create words, and episodic. While there’s messaging should be focused and sounds to create sentences. an abundance of semantic on a product’s benefits and This is at the root of what makes knowledge in our brains, as not its features. “Don’t sell the us human. marketers, we want to focus tool, sell the time savings.” But on providing and evoking think about this: Why aren’t we So in conclusion, we’ll leave episodic memories. Experiential establishing the benefits first, you with this. Meanings only memories. Emotionally charged what people want, and then exist because we’ve defined memories. Nobody gets excited adapting our products around them. We, each of us, have because they know how to those benefits? We manifest the ability to create meaning. spell a word, yet they may still benefits that we think people But meanings only become remember winning the spelling might want - after the fact - so meaningful when they can be bee in 3rd grade. What we it fits with our features. Why shared and understood by those notice and what we remember shouldn’t simplicity trump all around us. If we can succeed at are the things that provide features that make a product this, we can redefine the world.--
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90 REIMAGINE MARKETING FAILURE TO LAUNCH Learn about nine common pitfalls of CRM software implementation, tips on how to avoid them, and strategies for a successful launch. REIMAGINE MARKETING 91 Failure to launch
It’s no secret. Relationships that perhaps this promise is to managing relationships. take a lot of work. Perhaps also CRM’s biggest downfall. In reality, the facts haven’t this is the reason that the changed: relationships take promise of CRM software, Since its inception, the a lot of work. In actuality, technology that can make promise of CRM software has the promise of CRM is not managing relationships become inflated to a point to outsource relationship easier, is so exiting for so of unrealistic expectations. A management to a computer, many. However, it’s possible magical, effortless solution but rather to provide tools,
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far to find CRM implementation distill these factors down to their horror stories. Research from root causes. These causes fall Forrester (2009) found that CRM into three main buckets. First implementations had a failure is poor planning - poor timing, rate upwards of 47% and that not defining objectives, and 50% of respondents stated that not planning for growth and CRM projects failed to meet change, Second is poor process expectations. So as an industry, - trying to do too much, too we’re left with two options: deny soon, no documentation, lack these statistics and continue to of cohesion between different inflate expectations (which many business units, and bad data, have actually done), or try to which is often a result of poor better understand what is driving process and non-use. Lastly, poor this failure rate and educate people management - poor user ourselves on ways to avoid these adoption, lack of training and pitfalls. We’ll choose the latter. resources, and over-reliance on the software. While there are many variables that can lead to CRM implementation The good news is that all of these failure, we’ve done our best to common causes of failure are
THREE TYPES OF in the form of software, that CRITICAL FAILURES can help businesses better manage their relationships. More relationships. Higher PLANNING quality relationships. With greater cohesion across With poor planning and design, failure can business units. And when begin before implementation has even started. done correctly, the impact is undeniable. A 2011 study PROCESS by Forrester found that the Breakdown in process during implementation average ROI from Dynamics can lead to issues that can be fatal to success. CRM is 243%. (Pardon the shameless plug). PEOPLE Even with appropriate setup, a program can fail Yet despite strong successes, if the individuals involved aren’t well supported. one does not have to look
REIMAGINE MARKETING 93 addressable. Most of these are not CRM specific and can be helpful insights when launching any new solution, software, or otherwise; however, they should all be considered when determining your readiness for a CRM solution, what vendor to use, and the specifics of your implementation plan.
We hope this information can be both informative and useful for businesses who are considering a CRM solution, those already in the process of launching a solution, and for those who want to get more out of their CRM software.
“It’s fine to celebrate the success, but it is more nine important to heed the lessons of failure.” -Bill Gates
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PLANNING PROCESS PEOPLE
POOR TIMING BAD DATA INSUFFICIENT TRAINING
bad timing for organization u lack poor data quality u inaccurate data failure to provide quality training of staff bandwidthu lack of funds fields u outdated and duplicated to employees u no documentation to execute correctly u unnecessary entries u unreliable metrics and of process u over-prescribing the implementation u trying to use CRM insights u inconsistent taxonomies process for individuals u failure to to solve unrelated problems u not across different business groupsu provide tools that integrate with ready for a full-scale CRM solution u too much data makes data difficult existing processes u lack of available lack of education on CRM to understand experts for immediate support
NO OBJECTIVES LACK OF COHESION POOR USER ADOPTION
not defining clear objectives before failure to align across business poor management adoption trickles starting u no established KPIs u units u lack of support from down to employees u failure to lack of vision on how it will be used upper management u different create a CRM culture u value not internally u no definition of what departments are working towards displayed to employees u lack of success will look like u no definition conflicting goalsu one teams lack socialization throughout company u of failure u no goals for use across of use prohibits other teams from failure to get input from end users u different departments using u not thinking big picture too difficult to use
NO PLAN TOO MUCH, TOO SOON OVER-RELIANCE
poor planning u no documentation trying to accomplish too much at believing CRM is the same thing as u unrealistic rollout timeline u launch u doesn’t phase launch u managing a personal relationship u underestimating resources required over-customization at launch u relying on software as a complete u lack of process for change and completing steps B and C before replacement for personal interaction growth u failure to phase plan u step A u not waiting for validation u expecting perfection with zero plan interferes with existing daily before scaling u putting timeline manual oversight u treating as a practices u no flexibility ahead of quality work technology only solution
REIMAGINE MARKETING 95 “The only reason for time is so that everything doesn’t happen at once.” one -Albert Einstein
Lastly, while companies should think both short- and long-term about their needs, some POOR companies may put their aspirations before their needs. Large CRM implementations can TIMING quickly be rendered useless if a company has no real use for it. Many of today’s solutions are CRM success can fall victim to very easy to scale, so start small before you poor timing. This can mean one commit to a large scale solution. of a number of things. The first relates to necessity. Businesses may provide CRM as a solution to an unrelated problem. This is not the right time for CRM. One such circumstance is a business who is having staff issues. While providing more tools may improve staff performance and morale, if the wrong team is in place before a CRM implementation, the wrong team will still be in place after.
Businesses may also fail to consider the timeline and resources needed to successfully execute CRS in relation to their business cycles. A smooth kick off can be derailed quickly if it begins to interfere with existing daily practices. Employees who might have bandwidth during a kickoff may not have bandwidth in subsequent months if workloads vary with seasonality.
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“I can’t change the direction of the wind, but I can adjust NO OBJECTIVES my sails to always reach my destination.” -Jimmy Dean KNOW YOUR DESIRED DESTINATION BEFORE YOU HIT THE THROTTLE.
Businesses who fail to set clear goals and objectives will inevitably fail. If you don’t define what success looks like, how will you know if you’ve accomplished it? While many businesses may believe they’ve established objectives with two regards to a CRM implementation, too often these objectives are too vague. As a result, it
becomes virtually impossible to know when you’re on the right path and when you’ve steered off course. To drive success, create clear and tangible goals.
Even well-defined goals can lead to failure if they are not broken down into milestones. On a 10,000 mile journey, it’s much easier to course-correct after 200 miles than to fly for 9,000 miles and realize that you’ve been off course the entire time. And while these goals should be strategic and agreed upon before a program is initiated, it’s also important to revisit these objectives frequently and remain flexible. New information may highlight paths that you were previously unaware of.
REIMAGINE MARKETING 97 three
“Everyone has a plan ‘till they get punched in the mouth.” -Mike Tyson
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NO PLAN
PLAN BASED ON THE ASSUMPTION THAT NOTHING WILL GO TO PLAN. THIS WAY YOU WILL NEVER BE CAUGHT OFF-GUARD.
Even businesses who develop a will a revised plan be made in an strong A-to-B roadmap can watch efficient and strategic manner? their implementations spiral out This may involve identifying of control when they are faced categories - such as personnel, with an unexpected change. technology, or finance changes - Some common challenges include and determining who needs to be turnover of key employees, budget involved in the decision making cuts, or faster than anticipated given a particular issue. growth. During the planning process, businesses should not A common CRM implementation only consider their optimal path failure stems from underestimating to success but also what that path implementation timelines. Truth be would look like given a variety of told, there is no defined end-point likely and unlikely circumstances. with regards to an implementation. Beyond developing plans for CRM solutions will continue to these possible scenarios, it is require support as your business beneficial to have a plan for the and CRM needs evolve. Create a unplanned. In other words, if a plan that establishes when a launch situation arises that jeopardizes is complete, what a maintenance the current trajectory, and there is plan is, and how you will plan for no contingency plan in place, how future growth and changes.
REIMAGINE MARKETING 99 four
BAD DATA Bad data is probably the greatest risk to the long-term success of CRM. The longer a CRM solution is active, the more data that will be collected. As longevity and scale both increase, so does the likelihood of accruing bad data. Once the volume of bad data reaches a tipping point, users will deem all of the data unreliable and stop using it. Just as there are many variables affecting human perception there is no singular value for an acceptable data accuracy rate. Several different studies have suggested the error rate tipping point is somewhere between 4-20%. One of the reasons poor data quality is so detrimental is because it is cyclical. The less accurate the data in your CRM system, the less people will use it, and the less that people use your CRM, the less accurate your data will become.
Bad data issues fall into several categories: incorrect data, duplicate data, incomplete data, or outdated data. Incorrect data has obvious issues, including the making of poor decisions based on this invalid information. Duplicate data is often a result of a lack of cohesion between teams or team members. Once an entry is duplicated, it is likely that neither of the two entires will remain accurate or updated for long. One of the biggest benefits of CRM is the ability to have a 360-degree view of a customer. If different teams are using different entries, neither will be able to gain a complete view of that customer.
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LACK OF COHESION
A major benefit of CRM software is that it single customer view is completely lost. And allows businesses to centralize and leverage beyond the lost value, the massive amounts of information across different business units, duplicated entries with inconsistent taxonomies including marketing, sales, support, and product can become a nightmare for IT. groups. When one of these teams decides not to leverage their CRM tools, it will diminish Cohesion needs to start at the most senior level the quality of the data but will not necessarily of management. When management is not in be detrimental to a program. Major problems agreement on a common direction, they will do arise when different business groups fail inevitably send teams on different trajectories. to align around a common set of goals and Individual teams will essentially start using their practices. When this occurs, the data becomes own, isolated version of the software. This lack non-transferable between business groups of integration greatly reduces the value of the and teams end up working with completely software, which leads to poor usage, poor data, different information. Data quality quickly and poor performance. Without cohesion, the becomes compromised and the benefit of a house of cards will eventually crumble.
five
REIMAGINE MARKETING 101 adding additional capabilities, make sure that the software seamlessly accomplishes all of the things that the old system could do, and help people make the As CRM software have evolved, transition. Only after this baseline their capabilities have grown has been established should immensely. In addition to contact businesses layer on additional management solutions, many capabilities. TOO CRM software now include multiple audience segmentation Beyond the implementation capabilities, marketing automation challenges associated with tools, social media integration, over- customization, it denies MUCH and mobile extensions. And these employees the opportunity to are just a few examples on a very learn a product’s core capabilities long list. before expanding it with add-ons. A commonly heard phrase is, “The TOO While these options are enticing, new system is fine, but I’m just so companies get into trouble by much more familiar with the old including too much customization system.” Learning a new system at launch. When initiating a new is enough work. When layered SOON CRM solution, particularly for with needing to learn a bunch businesses who are transitioning of additional features, the task from an old system, the first can be overwhelming. Avoid this objective should be to not disrupt implementation misstep by taking existing daily practices. Before a phased launch approach.
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six
“The new system is fine, but I’m just so much more familiar with the old system.”
REIMAGINE MARKETING 103 “An investment in knowledge pays INSUFFICIENT the best interest.” TRAINING -Benjamin Franklin informally designated. These are individuals who are particularly knowledgeable on the software and process, and can act as a resource for others should simple questions arise. Users may give up on trying to learn a new system if they perceive getting help to be too daunting or embarrassing, seven so having this role filled by a fellow employee makes the task of asking for help much easier. When planning, consider who may fill this role and what the impact on their bandwidth may be.
The importance of training employees on new software cannot be understated. Even the best CRM implementation can be rendered useless if no one knows how to use it, and unfortunately, this is the root of why many CRM implementations fail.
Training failures can take on several forms, the first of which is simply a failure to educate employees on how to use the new tools. Businesses also fail by not documenting their processes. While hands-on training can be extremely beneficial, proper documentation provides an important resource for employees to reference as they begin to implement new programs on their own.
It is very useful to have internal experts, whether formally or
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eight
POOR USER ADOPTION
Perhaps the largest objection to implementing CRM systems is the notion that people will not use it. Unfortunately, many companies seem to will this into happening. The result is a failed implementation and unhappy management who proved themselves right.
Poor user adoption is a major dashboards that provide a Some companies struggle to cause of CRM failure. Limited comprehensive view of activity get employees to use their CRM usage results in poor data quality, have given managers a higher systems because they are believed which begets even less usage. stake in the game, but without to be too complicated to use. The There are several common causes a commitment from the people perception is that the cost of use for poor user adoption. at the top, the chances for the is lower than the potential benefit. employees below to commit is low. To combat this, companies must The first cause has little to do with make usage as simple as possible. the users and more to do with Many companies fail to gain This may range from additional management. Often, with CRM traction with CRM because they training to providing tools that implementations, the software is fail to socialize it throughout the help integrate the CRM system with viewed as a tool to help the staff. company. The companies must other software that the employees As management is not involved show employees the immediate already use. in the day-to-day operations, value of using the tools. The value they have very little interaction of CRM solutions increase as Lastly, companies can also fail with the software. While they more information is provided to when they neglect to involve certainly want it to be used, their the system, thus the more teams employees in the process. Getting perceived indifference to usage that are able to contribute data, input from end users can unlock quickly trickles down through the the better. In order for users to opportunities to improve the organization. For CRM to be truly leverage these tools, they first implementation, uncover reasons successful, it must become a part must be made aware of their for poor adoption, and incentivize of a company culture that starts capabilities. Then they must be use by giving the employees a from the top. New management trained. stake in the final implementation. REIMAGINE MARKETING 105 nine
“There are no shortcuts in life - only those we imagine.” -Frank Leahy
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OVER-RELIANCE
THE PROMISE OF CRM IS NOT TO OUTSOURCE RELATIONSHIP MANAGEMENT TO A COMPUTER.
A common cause of CRM more strategic tasks, like defining implementation failure starts with audience segments, creating misguided expectations, such as customized user experiences, expectations that it will replace a and providing quality leads to sales or marketing team. That it sales with information on their will free up resources. That it, in interests and purchase triggers. and of itself, will build stronger Customer support teams will align relationships with customers. much more closely with product development teams, providing Unfortunately, these expectations real time product feedback. CRM will lead to disappointment. The can provide customers with a promise of CRM is not to outsource more personalized experience, but relationship management to a it is only able to do so through computer, but rather to provide the people that enable this tools, in the form of software, personalization. that can help businesses better manage their relationships. More relationships. Higher quality The most unfortunate part of these relationships. With greater CRM failure rate statistics is that cohesion across business units. with some better guidance and CRM and managing relationships planning, many of these failures are not synonyms. CRM is not could have been huge success a technology only solution; it is stories. While hindsight is 20/20, system that is enabled by software. we hope that using insights from Managing these relationships still past failures can help provide requires a lot of work. guidance that will drive future success. Wherever you are with The expectations for CRM should regards to CRM - just learning or be reflected in the evolving roles of a seasoned veteran - we hope that employees. Marketing teams who this exploration has been both once focused heavily on getting informative and useful to you on ads out the door will now focus on your journey.
REIMAGINE MARKETING 107 #reimagine
108 REIMAGINE MARKETING REIMAGINE MARKETING 109 110 REIMAGINE MARKETING Anyone who has never made a mistake has never tried anything new.”
-ALBERT EINSTEINREIMAGINE MARKETING 111 MEETING MINUTES Don’t have time to read everything. Here are the meeting notes with the highlights.
20 Social vs search showdown More and more, social media and search seem to be competing for ad dollars, with promises of highly-targeted, low-cost ads. Exploring their strengths shows that they are more complementary than competitive, with social aiding in awareness, interest, and social validation and search in research and purchasing.
47 Get a breakdown of the new Twitter layout
Twitter recently introduced an updated page, making major changes to both the layout and design. The 42 The Science of Relationships new page features a full-width header image, There are lots of great insights marketers moved the profile can learn from science, like to create simple picture to the upper messaging that is easy and obvious to understand; left, highlights popular provide a hierarchy of information, offering tweets, and now allows general concepts before providing detailed users to pin tweets to the information; and set expectations in advance. top of their page.
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Privacy Statement: http://www.microsoft.com/privacystatement/en-us/core/default.aspx Trademarks: http://www.microsoft.com/en-us/legal/intellectualproperty/Trademarks/EN-US.aspx 112 REIMAGINE MARKETING 8 CRM in the Age of the Customer
Customer Relationship Management in the Age of the Customer is causing business to evolve their customer experiences. CRM helps to unify experiences across the customer journey, from engagement to transaction, through fulfillment and service.
54 Failure To Launch
Once a new CRM software has been acquired, the implementation process begins. Avoid common implementation pitfalls - such as failing to set expectations, poor planning, and low adoption - to get the most out of your CRM.
40 What is your software worth?
Software is typically considered an intangible asset; however, depending on the type of software, its relationship to the hardware, and its delivery method - cloud-based or on-premise - software may be classified in one of several different ways.
82 Custom Tailored
Target the right person with the right message at the right place at the right time. Develop customer segments that are differentiated, targetable, and addressable. With defined segments, leverage targeted media to deliver customized messages to these unique audience groups. REIMAGINE MARKETING 113 CUS- TOMER RELA- TION- SHIPS 114 REIMAGINE MARKETING