Nick Martin's Marketing Pages

Radian6 highlights shift in Social from defence to value creation

Salesforce.com certainly splashed the cash on Radian6 - to the tune of $340M - because they believe that Social will profoundly change sales and marketing, and want to connect market conversations with marketing and sales.

As SF's PR put it:

Radian6’s unique technology captures hundreds of millions of conversations every day across Facebook, Twitter, YouTube, LinkedIn, blogs and online communities. The intelligence gained from these conversations has become critical in helping companies better market and sell to prospects, serve customers and understand what’s being said about their brands, products and competitors. With Radian6, salesforce.com will add the ability to monitor and join in these public conversations across its products, bringing the heart of the public social web to customers’ business.

In other words, from SF's perspective, Radian6 will bridge the conversations happening on public social networks, such as Facebook and Twitter, and Salesforce.com’s private corporate social network, Chatter. 

To date social media monitoring has been used a bit like Talk Radio - defensively. Brands have learned that they can no longer smother isolated unhappy customers with broadcast market messaging, and need to nip destructive conversations in the bud - which have an unpredicatable tendency of catching like wildfires.

 

Now brands are trying to work out how to integrate social into their marketing and relationship management strategy. 

Where are we likely to go from here? How about leveraging social networks through recommendations from trusted sources? It's like adding a whole new dimension to targeting, just as the traditional push marketing model is flagging.

World class prospecting and market development is as much about trust as it is about cut through, and solutions that simplify that challenge and make it easy to deploy authoritative acquisition and development programmes will help solve one of marketing and sales' great current challenges.

Image courtesy of Brian Solis

 

CRM 3.0 - where do we go from here?

I'm increasingly firming up the view that the desire of marketing services providers to sell meta systems to large enterprises is not shared by those target organisations, nor, significantly, the big 4 Consultancies. These are the guys with the ear of the Boardroom, and their views matter - to an ever-increasing extent trumping the Advisory firms.

Having invested and reinvested over the last decade in core platforms for creating a single customer view, relationship management et al, there is no desire to do it all over again.

Multichannel marketing is perhaps better approched by thinking about the extent to which your customers have a propensity to be channel agnostic (Forrester). I've set out my stall that trying to deploy integrated, do-it-all multichannel CRM platforms is wrong headed. Far better to have fit-for-purpose specialised execution platforms, with the activity, history and response data looping into the single customer view.

Organisations want to see a return on their investments to date, and are looking for components that can leverage their previous investments. 

• To that end, one overlooked area is marketing resource management, and the speed of deployment benefits to an organisation by alignment of DAMs with customer databases and segmentation. 
• Another emerging channel looks like being on-site assistance, with high predictability and personalisation assured through integrating knowledge bases, scripting, and embedding objects/ web services to determine which experience to serve to different consumer profiles common trigger-based events such as Next Best Offer.

Both of these areas help improve the customer experience, a rising discipline within global enterprises. Why, these guys even have their own thriving industry association! This growing area will, in turn, drive the use of analytics to support marketing and customer relationship based decisions. Expect to see the use of analytics shift from a typically modelled, theoretical basis to more sensitive analysis of real behavioural data. 

 

Teradata gobbles Aprimo to top marketing services leaderboard

Late last month, Teradata Corporation (NYSE: TDC), the world’s largest company solely focused on data warehousing and business analytics, announced the signing of a definitive agreement to acquire Aprimo.

. . . And that, my friends, is how to start the New Year with a BANG!

Seriously, though, I see this planned merger as significant on many different levels –not the least of which is that it underscores

• the need for integrated marketing software and

• the growing focus on overall marketing performance

Today, marketing defines the brand. It differentiates the business. It delivers sustainable revenue growth. And now, more than ever before, companies increasingly rely on information technologies to help achieve these goals. Combining Teradata’s powerful analytics with Aprimo’s innovative marketing will empower clients to integrate, streamline and continuously accelerate profitable growth.

via blogs.forbes.com

So says Lisa Arthur, Aprimo's CMO.

As core marketing services offered by providers (MSPs) become more commoditised, the perceived value rises in being able to pull it all together across production, planning, set up and execution.

That's a value chain that incumbents are ill positioned to deliver upon...for now. They simply don't have the mind-boggling strength in depth around customer analytics that Teradata has, nor the capability to configure content for multichannel delivery, nor a deep understanding of marketing resource management, nor the taxonomy skills to optimise across media.

As I've mentioned before, over reliance on a marketing execution platform (aka campaign management) to integrate marketing channels is plain wrong. It overcomplicates process, forces unnatural workflows that cost time and resources, and demands marketing organisations chuck out many existing components and reinvest body and soul...yet again. 

These guys, on the other hand, look like they are exceptionally well positioned to pull it all together: a space worth watching.

 

Call centres & the rise of personal assistants

Speaking at the Travel Technology Initiative’s Innovation Summit, Continental Airlines senior director of merchandising and ancillary revenue Chris Amenechi said the industry would have more intelligent approaches to the phone.

He also predicted the widespread use of kiosks and mobile kiosks to solve queuing and other passenger issues going forward.

“Wouldn’t you rather talk to someone who knew you and you can talk to in any language? That’s innovation, that’s avatar,” he said.

Amenechi added that for medium to high-touch customers, call-centres would still be important and be staffed with consultants with skill sets different to today.

He also talked about the development of mobile applications for exclusive services that travellers would be willing to pay for such as airport shopping concierges.

Continental launched its virtual agent Alex a year ago to try to deal with some of the traffic to the call-centre.

Amenechi said specific applications and the use of avatars for the trip cycle from pre-travel and post travel would increase revenue and drive down costs.

“A new way of travel is going to happen. You can imagine the avatar as a personal assistant going out and scouring sites and bringing back all the information to you. In-flight entertainment will change the way we enjoy travel and mobile will proliferate everything. The way we travel and these long lines will be a thing of the past.”

The technology behind personal assistants is coming of age: avatars are lifelike and conversational, they can self learn, will represent a business, its values and externalise internal knowledge in a consistently accurate and predictable way that outsourced call centres will forever struggle to emulate except at premium levels. 

Personal Assistant technology is now widely available, delivered via such programs as Azigo and Vlingo. Connect this technology with human-like avatars and Chris Amenechi's vision for the travel industry is born.

Core story courtesy of Travolution.co.uk

The price of customer engagement

How many consumers start a transaction, only to drop out before agreeing terms or completing payment?

The truth is, winning the attention of consumers - then proving the value of your product or service in an increasingly frictionless environment - is tougher than ever.

In a recent consumer survey by Fastmap, a third of all people visiting financial services websites or dialling into a call centre found the experience confusing, whilst a further third would have appreciated a more skilled advisor.  That makes two thirds of consumers who might have bought a financial services product may not have done as a result of an inadequate user experience.

There is of course a broad range of reasons why people abandon a transactional process. Shipping charges and price comparison browsing are commonly quoted. Notwithstanding, understanding the avoidable barriers that dissuade buyers from following through with a purchase is key to improving the consumer engagement.

Established agency solutions to winning those consumers back who have dropped out of the online sales funnel includes retargeting – the process of serving ads via a network following, for example, basket abandonment on destination sites and portals.  

The trouble is, using browser data for retargeting falls under the broad category of online behavioural targeting (OBT), the recent subject of the EU Article 29 Working Party. Their published opinion does not augur well for the future of any kind of third party OBT marketing activity; even where browser based cookies do not hold any personal data.

To quote an excellent summary and initial analysis by FEDMA:

In the view of the Working Party (WP), the revised ePrivacy Directive (as a part of the reviewed Telecoms Package) reinforces the requirement to collect “informed prior consent” as an adequate legal basis for 3^rd party OBA. The opinion stresses that consent, which must be freely given and specific, needs to be obtained before the cookie is stored. In order for consent to be valid, highly visible information must be provided. Information about the use of cookies also needs to be provided prior to the processing. In order to collect valid, informed consent, the WP recommends that ad network providers create prior opt-in mechanisms that require an affirmative action by the data subjects, indicating their willingness to receive cookies and to the processing of these cookies for the purposes of delivering targeted advertising.

 So is now the time to look beyond online consumer activity and implying conclusions about habits and purchasing needs through behavioural analysis, notably in regard to acquisition marketing?

There is undoubted value in responding in real-time to consumer confusion or questions that demand a degree of expert knowledge and a consistent approach.

 Call Me buttons that route users to an off-line call centre, or Agent Chat programs that enable you to connect with a call centre are both important ploys to handle questions and improve conversion to sale. Their weakness is in the depth of knowledge of the call centre agents. Many times I have sought help, only to discover I know more about the product or service I wish to purchase than the agents on the other end of phone.

 Part of the answer surely lies in the creation of a really effective company knowledge base.  With this in place, it becomes possible to accurately respond to questions & obstacles to sell in real-time. Translating the product and service value proposition, together with detailed practical and operational information (e.g. delivery options) into a knowledge base needs to be a core building block of online marketing.

Currently this information is hopelessly fragmented across the majority of organizations and therefore is impossible for its customers to access. As a consequence, when IKEA implemented a rudimentary, cartoonish avatar on their site, its ability to answer questions effectively was severely limited.  On a recent visit it was unable to answer any of the questions my wife posed.  Needless to say, the impact is lost business.

Once the creation of the knowledge base is undertaken, it can be turned into consistent, accurate dialogue with consumers via enabled call centres, online avatars and drive social media conversations.

Recent experiences of avatar deployment have delivered astounding results, for example improving quote to book ratios by 300%+ in France, proving that there’s no help like real time help, as long as it’s delivered with the requisite level of expertise.

In an increasingly unforgiving, socially networked world, knowledge and the ability to apply it in real time must be a core business competency. It is up to marketing to seize ownership.

Banks Wriggle On Hook Of Basle III

The Financial Times reports today that 'economic growth in the eurozone, the US and Japan would be cut by 3 per cent between now and 2015 if current proposals to force banks to hold more capital and liquid assets go forward unchanged, the world’s leading banking industry group warned Thursday.

As a result, 9.7m fewer jobs would be created in those areas over the period, according to an impact assessment issued by the Institute for International Finance at a meeting in Vienna.

The industry group is pushing hard for the Basel Committee on Banking Supervision to water down or at least delay implementation of the proposals, which are slated to be voted on later this year.

According to the IIF, the eurozone would feel the largest impact from the new Basel proposals with growth cut 0.9 percentage points per year, resulting in a cumulative reduction in gross domestic product of $920bn or 4.3 per cent by 2015. The US would see a cumulative reduction of 2.6 per cent ($951bn) and Japan would see a 1.9 per cent cut ($130bn). The group did not look at the impact on the UK or Switzerland.

“There is a price for making the banking system safer and more stable, and that price will inevitably be borne by the real economy. The challenge is to strike the right balance, to get the maximum benefit for the minimum negative impact,” said Peter Sands, chief executive of Standard Chartered and chairman of the IIF committee on effective regulation.'

The fears relate to money supply. If banks cannot leverage their equity base, called Core Tier 1 Capital, to lend money (increasing the risk-weighted & assessed assets on their balance sheet) then they shift focus from lending to shrinking their balance sheets.

This is already happening, both in respect of commercial and consumer lending, and Basle III rules will make it worse. At what point will banks also have to write down more of the value of their assets (since many will have dropped in value in the last 2 years)?

What's worrying is if in background The Institute of International Finance (IIF) is genuinely fearful for some of its members, squeezed by the likely need to write down assets anyway, and by the added requirement to get to a equity to asset ratio that is more demanding than currently. It is the resulting solvency concerns that are really very serious. 

All this means less investment lending from banks, which in turn means that money supply will continue to be squeezed, and therefore growth is likely to remain subdued until banks' balance sheets are repaired.

Since state spending has run its course, it can no longer afford to continue to prop up GDP growth via employment and other initiatives. We have seen very clearly this last month that governments that do not show a real appetite for reining in their runaway deficits will get hammered by the markets. Their is in effect no choice other than fiscal restraint.

Consumer spending is unlikely to pick up the baton soon, and statistics showing consumers are paying down debt faster than ever, is probably counting banks' cutting down their loan books and defaulters. Of course, whilst interest rates remain historically low no one is in screaming pain, but that would change with any creeping inflationary pressures.

Whether this means that a double dip, takes the form of another fall in GDP in certain countries or prolonged subdued overall economic activity (what commentators are calling a lost economic decade) remains to be seen. 

On the positive side the WSJ has reported a Federal Reserve statistic that nonfinancial companies had socked away $1.84 trillion in cash and other liquid assets as of the end of March, up 26% from a year earlier and the largest-ever increase in records going back to 1952. Cash made up about 7% of all company assets, including factories and financial investments, the highest level since 1963. 

In today's world, cash is most definitely king. The vogue of leveraged organisations belong to a not-so- distant past. Anything that can reduce operational costs is therefore more attractive than ever. Combine that with the sea-change in consumer and buyer behaviours and the corresponding commercial need to engage with markets quite differently than in the past to sustain and defend a customer base, and you can see why companies are attracted to innovative solutions that improve marketing operational performance and outcomes.

There is undoubtedly money to invest, whether in the form of companies cash reserves, venture capital, or private capital; just not in the things we've always done the way we've always done them.

Customer Management Trucks

Apple CEO Steve Jobs recently made a comparison between PCs and trucks, vehicles that once dominated the car market in the US, but which got killed by smaller cars as the US consumer got real.

In an article in the WSJ, Mr. Jobs said computers, including Apple’s own Macintosh, won’t go away, just as trucks didn’t disappear. But he suggested that sleeker portable products such as his company’s iPhone and iPad would be the equivalent of cars—offering touchscreen Website browsing, droves of applications and other features not found on PCs that run Microsoft Windows.

Arch rival Microsoft reacted negatively to the pronouncement, after all laptop shipments are still showing double digit growth rates. Yet Jobs is simply facing up to the reality of a changing world.

And so to the analogy: in business, we have witnessed just as profound a change in the challenges that confront CMOs in the face of the mind-blowing explosion of online and interactive channels; increasingly important social media with the potential to become as significant a source of demand as Search; in short the most radical market-led upheaval we’ve ever experienced.

You’d wonder whether the same tools and platforms proposed by marketing services providers that promised tremendous business improvements just a few years ago might be struggling to make an impact in today’s shifting landscape. You’d be right to.

Forrester, in a report entitled Campaign Management Needs a Reboot (April 2009) highlighted how platforms were struggling to keep up with business change: 

Today the notion of campaigns extends beyond traditional communication channels to include emerging and inbound channels like mobile, Web sites, landing pages, and social networks. Campaign management applications struggle to keep up with the design, management, and reporting needs of these channels. But an explosion of channels is only one of the many challenges that threaten the relevance of campaign management solutions. Campaign management tools also struggle to:

·       Improve cross-channel customer interaction. 

·       Make sense of the social phenomenon.

·       Lack defined processes and methodologies to use social insights to improve marketing campaigns.

·       Marketing campaigns no longer have finite start and stop dates. 

·       Social media channels and customer conversations.

·       Lower the learning curve associated with technology adoption...As one direct marketer said, “The complexity of the system makes it hard for our distributed stakeholders to build and execute campaigns and increases dependence on our small group of power users.” 

Forrester’s perspective is that there are too many different platforms that make it hard to integrate, leading to missed business opportunities, poor customer experiences, and inefficient program execution.

Whilst I agree with the analysis, I disagree on this conclusion. On the one hand, multiple marketing execution platforms tend to make it harder to integrate and measure the vast range of engagement activity that marketing has to deploy across. On the other hand the solution isn’t to create one meta marketing platform. Software rarely shines when it’s asked to do many tasks in one. Marketing users hate ‘integrated’ platforms that attempt to do everything, because they’re hard to use, overly complicated and tend to be too rigid. 

Specialisation is the name of the game. Solutions for lead generation that work on demand pull principles are a totally different proposition to campaign managers that are designed for push marketing applications. 

In the world of multi-channel integrate marketing, the execution platforms can be managed in house, outsourced or rented - in the form of SaaS or cloud computing. Frankly, it doesn’t matter in principle. What matters more in practise is which platform suits the business needs best, and complies with their policies in regard to security, control, strategic and privacy imperatives.

But how to integrate effectively, in order to deliver the vital operational improvements whilst allowing the organic and fluid nature of marketing communications to follow its customer-led path of least resistance?

The answer lies not in embedding rules engines, data management et al into campaign management and other marketing execution tools. That’s yesterday’s model and simply reflects the established order: one of channel specific siloed organisational structures where marketing teams are responsible for online, for direct mail, for contact centres and so on. 

What's needed is a much broader marketing biosphere, which comprises 3 key areas:

1. Data management, analysis and rules definition

• Design of the data model, single customer view creation, activity data, semantic web data.
• Analysis and segmentation
• Rules engine

2. Marketing Activity Management

• Document processing
• Digital asset management
• Marketing workflow automation
• Resource management/ web-based utilities

3. Marketing execution

• Campaign managers
• Email/ SMS platforms
• Networked lead generation deployment & settlement platforms
• Online advertising network platforms
• Social network solutions
• etc.

The centre of gravity in creating a truly effective, flexible, adaptable customer communications management environment lies in getting the first two areas correctly architected. Herein lies the solution to true multi-channel integration, an approach that can be orchestrated manageably.

 

It means that wherever the media explosion takes us, however many new and unpredictable IP enabled channels open up, the means to be able to simply integrate them exists; using the right data, content, channels, technology and people.

 

More specialisation around execution, not less, is likely to win out. Fees associated with those platforms will continue to fall, as users pay for what they actually need and use, safe in the knowledge that their marketing biosphere is in place, ready to meet with every fresh challenge. 

Marketing in the cloud

Marketers should have their heads in the cloud.

If you haven't read The Big Switch by Nicholas Carr yet, you need to add it to your list. Cloud computing — that is, computing infrastructure that is based somewhere out on the Internet, rather than installed on hardware locked in your company's IT center — is becoming real. Fast.

Combined with the maturity of web-based software-as-a-service offerings, the strong gravitational pull of social media sites where marketers now work beyond the borders of their company's sandbox, and the widespread proliferation of web services and mash-up APIs, the cloud has become marketing's new IT platform.

For marketers, this is a terrific opportunity (a) to re-calibrate the relationship between marketing and technology and (b) to expand your capabilities in the "new marketing" environment, where the pace of innovation in online marketing channels and methods continues to accelerate.

I think of "computing in the cloud" for marketing in fairly broad terms — more broadly than the technical definition of cloud computing — and divide it into four buckets:

1. Web sites where you are a participant or sponsor, particularly social media communities. These are sites such as Facebook, Twitter, LinkedIn, Xing, MySpace, Yahoo! Groups, Digg, del.icio.us, Twine, etc. This isn't what most tech people think of when they talk about cloud computing, but from a marketer's perspective, these are important services out on the Internet that you must plug into to do your job. Your audience is in the cloud, and you have to go in there after them. The IT aspects, however, reside outside of your control.

2. Software-as-a-Service (SaaS) applications. These are applications that you access through your web browser, are hosted on a server farm by a third-party, for which you have zero operational involvement. Some are free, such as Google Analytics, but many are provided on a subscription basis, such as Salesforce.com. Pay only for as much as you need for as long as you need. There are a plethora of SaaS applications for marketers available today, with more coming online every month — if you have a favorite that I've missed in my "for instance" below, please add it in the comments:

• customer relationship management (ex: Salesforce.com);
• landing page management (ex: LiveBall — disclaimer, my firm);
• surveys and questionnaires (ex: SurveyMonkey);
• email marketing management (ex: ExactTarget);
• web site analytics (ex: Google Analytics);
• marketing resource management (ex: MarketingCentral);
• blogging platforms (ex: Typepad);
• lead nurturing (ex: Marketo);
• digital asset management (ex: Celum Imagine);
• search marketing management (ex: SearchIgnite);
• project management (ex: AtTask);
• web conferencing and webinars (ex: WebEx);

Click here to read the rest of this excellent piece from Scott Brinker's Chief Marketing Technologist blog.

via www.chiefmartec.com

Nick Martin: A truly great introduction to Marketing in The Cloud from Scott Brinker...or the future of marketing services. He's quite brilliant!

One significant challenge remains how to glue together several marketing components, which is why Salesforce's apps exchange is so compelling, acting as it does like an apps bus/ backbone for a myriad of third party Software as a Service (SaaS) applications. Nonetheless, as long as database integrity is far from ideally managed - and so often seriously compromised - there will remain questions around the feasibility of integrating web components into a Cloud based set of marketing processes. That's where marketing utilities come in, to glue bespoke solutions together made up of numerous application components around database integrity, quality and real time customer information management. More thoughts on this coming soon...

Reshaping strategy through changing consumer behaviour

Barry Clark, of Future Foundation, delivered a thought provoking lecture on the changing consumer landscape at the Financial Services Forum's (FSF) absolutely superb General Insurance Summit.

                                        
 
New behaviours and attitudes are being shaped by the last two years, that he categorised into seven trends that marketers need to take into account in the shaping of strategy, innovation, propositions and communication strategies. Here we review four:

The first is Living Lite, caused by a sense of rising clutter, the war on waste, gathering environmental concerns within middle England, greater awareness of recycling and an entrepreneurial approach to finding new value in old goods.

Trends this is informing include renting vs purchasing, a return to the Radio Rentals model. Owned by Thorn, its Australasian offshoot today rents completely new categories of good, proclaiming on its website 'join the rental revolution'.

The second is a return to professional budgeting. With a middle class squeeze caused by rising education costs and tax, tighter personal budgets are informing budgeting behaviour.

A return to maximising describes behaviour when consumers are scrutinising offers more carefully, resarching as much as possible pre purchasing decision, searching independent views and consulting friends (in today's society substantially aided by user generated content online). As the Chartered Institute of Marketing (CIM) puts it, today we place more trust in the collective voice of complete strangers than we do in the individual opinions of close family and friends.

Clark's next trend is the rise of the discount and free society, enabled by advertising supported economic models, spanning free films, music and information content. In conjunction with maximising behaviour, you might reasonably conclude that this change lies behind the rise of the thriving 99p chain stores.

Yet I would challenge whether this trend is likely to endure. Consumers are getting used to spending money and recognising value differently, as micro-payments. As a result, online music sales are rising (now entirely compensating for offline declines), premium publisher content is being increasingly charged for successfully, and whilst ad-supported models will no doubt continue to flourish, we should take care not to overestimate the strength and singularity of the free services movement.

This is all very well, but will behaviours change with a future return to economic prosperity? The answer is probably yes and no, due to environmental and related attitudinal factors counterbalancing economic ones. In the meantime, the West is quite likely to experience several years of extremely low growth and further declines - at least 5 more years - due to lower levels of large-scale investment as we slowly but surely deleverage. As The Economist explains, it's barely begun.The reasons why we'll discuss separately, along with the opportunities this presents firms that drive efficiencies and better organisational integration.

Digital marketing tipping point

Fresh research undertaken by Ipsos Mori on behalf of the Chartered Institute of Marketing indicates that 17% of all companies surveyed on their marketing spend say that online advertising has now overtaken offline spend, whilst a further 30% expect this further shift within the next 5 years.

To context these findings, in June 2009 PricewaterhouseCooper's (PwC) latest Entertainment and Media Outlook report predicted that online advertising in the UK would take 36% of all adspend by 2013.

Among the losers was offline classified advertising, surely a dead model that will dwindle to next to nothing, supplanted by a much more efficient online range of business models, that generate a measure of substitutive income in different ways.

With share of spend set to decline this current fiscal in direct mail, sponsorship, advertising and internal marketing, and online and email set to displace traditional marketing campaign channels, this latest business poll throws up no real surprises. 

We know from recent history that downturns will accelerate these trends, as demonstrated at the end of 2008 (see here and below) . Were there to be a double dip in the next year or so - as the world experiences rumbling indigestion caused by excessive sovereign debt and a moment of truth when spending is finally, belatedly reined in - I would expect a further monumental shift in marketing spend.

 

Of some surprise to me is the retreat in spend on internal marketing. Recent marketing practise says that taking time to win the hearts and minds of staff determines to a great extent the success of a business strategy. Internal spend linked to innovation, new product or market repositioning ensures money spent on acquisition or customer marketing isn't diminished. On the other hand measuring impact of internal spend can be tough, and the last year has sharpened everyone's appetite for clearer measurement of marketing returns.

The Ipsos Mori poll for the Chartered Institute of Marketing also asked which activities delivered the best return on investment. Top of the charts comes CRM by some margin, followed by online advertising and public relations. Those activities considered to deliver the worst return were direct mail, sponsorship, and internal marketing, mirroring the shift in spend.

What the findings do leave us with is a number of unanswered questions:

Do they reflect the shift away from acquisition in financial services towards customer marketing? Will perspectives on the effectiveness of different channels change with increasing maturity around integrated marketing practise? To what extent is the internet seen as a predominant acquisition channel versus a 'media for all media'? Is the importance of PR an enduring view or does it reflect the need to rebuild flat-lining consumer trust?