Tuesday, July 13, 2010

Are you an expert? You must be a failure

Recently I was introduced to Jonah Lehrer at the Theatre Communications Group annual conference in Chicago where Mr. Lehrer was a keynote speaker. His speech inspired an earlier blog post, and convinced me that I should probably read his book How We Decide. I am just about a quarter of the way through it, and I must admit that I am finding it a bit dense, although completely fascinating. Instead of reading right before going to sleep, I am waking up a little early to read because my brain needs to be fresh to process some of his ideas.

In the second chapter of the book, entitled "Predictions of Dopamine," Lehrer examines two subjects--TD Gammon (a computer specifically designed to play backgammon competitively) and Bill Robertie (a man who is a world-class expert in chess, poker and backgammon). In his examination of these two subjects, I learned two amazing lessons:

1. If you want to be an expert, you need to fail a lot! Lehrer quotes physicist Niels Bohr who defined an expert as "a person who has made all the mistakes that can be made in a very narrow field." Demonstrating this principle was TD Gammon. TD Gammon was leaps and bounds better than earlier computers at playing backgammon primarily because it was programmed to learn from its mistakes. When TD Gammon was ready to compete, its inventors wanted it to go up against a world class champion so that it could learn, so they recruited Bill Robertie. In describing his first matches with TD Gammon, Bill said "The first time I competed against TD Gammon, I was incredibly impressed. It represented a big improvement over any other computer program I'd ever encountered. But I knew I was still a better player." The next year, when Bill returned to play TD Gammon after a year's worth of almost a million errors in played matches, it was a different story. TD Gammon had become an expert by studying its own mistakes.

2. It isn't good enough to make errors, you must systematically study them. In determining how Bill Robertie could become a world-class expert in three games, it became clear that his success was linked to his systematic study of his failures. Lehrer quotes Robertie who states "It's not the quantity of practice, it's the quality. The most effective way to get better is to focus on your mistakes." In Lehrer's study of Robertie, he noticed that after Robertie plays a game, he painstakingly reviews what happened, and every decision is critiqued and analyzed. Even when he wins, he insists on searching for errors. In my professional life, I have been accused of being a perfectionist more than once, and direct reports have questioned whether I am ever happy with a result as I constantly analyze decisions, even on the cusp of a great victory. From a management perspective, I can see how that could be construed as having an insatiable appetite for perfection, but I guess I view learning in much the same way as Robertie does. Celebrating success is important, but in situations where you need to learn, and learn quickly, you need to focus on the mistakes even in victories.

Lehrer concludes that "mistakes aren't things to be discouraged. On the contrary, they should be cultivated and carefully investigated." I believe as managers we are responsible for creating environments where admitting mistakes is encouraged, so that as a team, we can all learn from them. In an age where people only want to talk about "best practices," we should also be discussing "worst practices." As it seems to me that you can only get to the "best" by surviving and learning from the "worst."

Recently I was sitting on a funding panel with a representative from a large influential funder, whose organization was supporting projects that could either be great successes or massive failures. It was considered by the funder a "success" to have either outcome, as long as a detailed analysis of each project was made available to the public to learn from. I thought this demonstrated very forward thinking on the funder's behalf, but the funder admitted to me that the public analysis requirement was a significant deterrent to applicants, as they were afraid that public failure would make them less desirable for funding from other sources.

As a field, failure should be celebrated, as long as we are relentless in our analysis of each failure and learn from each incident. Shame should be reserved for those organizations who are complacent in situations that demand change.

Monday, July 12, 2010

When the circus comes to town

Something a little fun for a Monday...

When the Circus Comes to Town


If the circus is coming to town and you paint a sign saying "Circus Coming to the Fairground Saturday", that's advertising.

If you put the sign on the back of an elephant and walk it into town,
that's
promotion.

If the elephant walks through the mayor's flower bed, that's
publicity.

And if you get the mayor to laugh about it, that's
public relations.

If the elephant walks down neighborhoods with more children than the rest and a higher # of former circus attendees, that's
segmentation.

If the town's citizens go the circus, you show them the many entertainment booths,
explain how much fun they'll have spending money at the booths, answer their questions
and ultimately, they spend a lot at the circus, that's
sales.

And, if YOU planned the whole thing, that's
MARKETING!

Advertising simply does not work as it used to anymore. It is an ever shrinking component of the marketing plan.

The consumer is frankly completely and totally overwhelmed. We have to be relevant, emotional and sustained!

I wish I could take credit for this masterpiece, but I can't. I don't know who wrote it - but the message is no less profound or true.

Friday, July 9, 2010

Today's Marketing Challenge: Is it worth it?

We talk to financial marketers from all over the country, every day. During our chats, we hear what's bugging you. This week, we'll address some of the more common issues we're hearing.

You're not alone!

Today's Marketing Challenge: Is it worth it?

Today's solution covers a wide variety of marketing challenges: "I think we need a MCIF or CRM, but they won't put it in the budget." "We need more marketing resources, but how do I pay for it?" "My department simply isn't respected at my institution ... marketing is more than 'arts & crafts!'"

The solution? Measure your results (or expected results)!

The simple solution is to demonstrate the value (or anticipated value) of your marketing efforts through ROI.

Think like a marketer and understand that your CEO/COO/CFO/Board/etc. are your target audience. You have to speak your target's language ... numbers!

What's that? You "don't do numbers"? Here's a quick cheat sheet:

ROI = (Incremental Profit - Marketing Investment) / Marketing Investment

The bottom line is:
  • Define where you are at the start
  • Determine the expected or actual outcome of your efforts
  • Measure the financial outcome against your investment
What was your return? Can your CEO/Board get a better return by investing the bank's/CU's money in stocks, HR or IT?

ROI is simply the best way to brand marketing as much more than "arts & crafts." It's also the most logical way to justify your dream marketing budget and wish-list resources (like MarketMatch).

We have an in-depth Financial Impact Analysis form that we use to justify our ROI Guarantee. If interested, call me at 937-426-9848 or email egagliano@marketmatch.com.

Take care,
Eric

Thursday, July 8, 2010

Today's Marketing Challenge: How do I get the most from email marketing?

We talk to financial marketers from all over the country, every day. During our chats, we hear what's bugging you. This week, we'll address some of the more common issues we're hearing.

You're not alone!

Today's Marketing Challenge: How do I get the most from email marketing?

With marketing budgets getting tighter and younger demographics demanding an immediate response while constantly on the go, email marketing is quickly becoming one of the most sought after and frustrating marketing tools. Can it segment? How do I know it's effective? I only have email addresses for 10% of my customer-base. Sound familiar?

The solution? Diligence!

Successful email marketing begins with identifying the right email partner, but the true success is in your diligence:
  • Select a system that can accommodate a variety of data fields and multiple audience lists. Use your core system, MCIF or imported email fields to segment and create individual audience lists for specific campaigns.
  • Focus your message on value-added tips, but link to relevant products on your website. For example, "You can better manage your budget by using debit cards and online banking to track every dollar spent each month." Then link to your checking account or online banking page(s). If you start the hard-core selling on email, your customers will opt-out and you can no longer email to them.
  • Diligently track, track, track. Most email responses will come in the first 3 days, but keep tracking for at least 1 week. Track who opens the email and what they clicked through to. Use the list of customers who clicked through to Online Banking, for example, for outbound sales calls to those folks to see if they had any questions when they clicked to your online banking page. You can provide your CSRs/MSRs with very targeted outbound lists of customers who have shown an interest in a product.
  • Diligently track, track, track (part 2). Record the topics of each email you send with the percent of opens, percent of click-throughs and percent of opt-outs to gauge what topics are important to your market.
  • Push hard to get your staff to diligently ask about email addresses at EVERY transaction - in the teller line, at the drive-thru, in the call center, heck - even in collections. If they talk to a customer, they should ask, "Can I please have an updated email address?"
Email marketing is a powerful, robust, trackable, cost-effective tool and it beats waiting two weeks for a mailing to print and mail.

Take care,
Eric

Wednesday, July 7, 2010

Today's Marketing Challenge: Keeping Social Media Fresh

We talk to financial marketers from all over the country, every day. During our chats, we hear what's bugging you. This week, we'll address some of the more common issues we're hearing.

You're not alone!

Today's Marketing Challenge: How do you keep Social Media fresh and beneficial?

Who's in charge of updating your blogs, Facebook pages, emails, Tweets, Linked In, etc., etc., etc.?

If it's just one person, you may be missing an opportunity.

The solution? Build momentum!

The underlying strategic goal behind any social media effort is to position the bank or credit union as a financial expert and to ultimately build the relationship with your target in a value-added way.

That said, you can build momentum in your efforts by soliciting the efforts of your entire institution. Schedule specific times for key team members to post messages. "This week our lending VP focuses on mortgage issues, next week our Commercial VP talks about how Reg E will effect transactions at the point of sale. The week after that, our Wealth Management advisor will discuss the ebbs and flows of the market."

Here are some tips:
  • Since you'll want to include managers from different business units (preferably even the CEO) and/or staff from different markets, schedule well in advance
  • Be clear on exactly who is responsible and exactly what they are responsible for
  • Provide recommended topic ideas and talking points. The more you can do for them up-front, the more likely they are to do it
  • Be a classy-pest. Send nice reminders prior to their deadline (see if they would like your help)
  • Set clear guidelines. Tweets should be short ... Blogs should be no more than XXX words ... Facebook should not be salesy .. etc.
If successful, you will enjoy the collective expertise of your entire institution, your team will begin to understand the value of social media, your customers will get to know more of your team, and you will position your bank or credit union as having a deep understanding of a variety of financial issues.

Take care,
Eric

Tuesday, July 6, 2010

Today's Marketing Challenge: Projects move too slowly, I have a marketing committee

We talk to financial marketers from all over the country, every day. During our chats, we hear what's bugging you. This week, we'll address some of the more common issues we're hearing.

You're not alone!

Today's Marketing Challenge: Projects take too long because I have a marketing committee.

Whether it's a committee of Board members, senior management or other team members, all committees are started with good intentions. Where many committees go astray is when every member wants final say in every detail of every decision.

The solution? Focus!

The most logical solution to streamline any committee is to define roles. You need planners, checks and balances and finally - a "doer."

The committee should be involved in each of the roles EXCEPT the doer. In short, the committee should:
  • Help outline and define the plan or marketing objectives
  • Help outline and define the budget
  • Confirm that the "doer" is acting in accordance with the stated objectives and staying on budget
  • Provide insight into what they experience through customer feedback or personal experience in the branches
A committee should not:
  • Be involved in the day-to-day tactics (they are not copy writers, designers or segmentation professionals -- heck in MOST cases, they are not the target audience, so their "personal opinion" on an ad can actually be detrimental)
With clear, well defined roles, a committee can help make your marketing stronger with regional feedback and checks and balances. If your current committee process is "gumming up the machine" however, it needs to be addressed quickly.

Remember: A compromise is an agreement whereby both parties get what neither of them wanted. ~Author Unknown

Take care,
Eric

Thursday, July 1, 2010

Turning Problems into Positives

The "Happiest Place on Earth" may be in Florida, but there are no mice there.

To me, the happiest place on Earth is a little condo in Sarasota where my family and my sister-in-law's family get together every year for white sandy beaches, a calm pool, and a week of relaxation.

That is until this year ...

Don't get me wrong, my family still had the time of our lives, but my sister-in-law had a completely different experience ... two days without A/C in the June Florida heat.

Certainly, the blame is not on the condo, they didn't shut off the A/C on purpose. But the way the issue was handled may loose then a faithful, recurring customer. And there are lessons here for your branches. When it comes down to it, the condo's problem was a lack of leadership:

Accountability
No one accepted accountability for the A/C. What was experienced was a lot of finger pointing.

When an issue occurs at your branch, your team needs to own the problem. If the point of contact can't solve the issue, they need to work to find someone internally who can and stay with the issue until it's resolved. Do not say, "you need to talk to Sally and she's off until Tuesday."

Responsibility
What was forgotten is that the responsibility is to the customer not on the customer. Even if your institution is not at fault for the error - the perception is that you are. If the customer is unhappy, your entire team needs to work to make it better.

In the case of our condo, they expected the customer to talk directly to maintenance until the A/C was fixed.

Empowerment
Great leaders empower their team to make decisions. Otherwise, when the leader is not around, nothing gets done! Your team has to be comfortable doing what's right for the customer without the fear of second guessing. The more empowered your team, the faster customer issues will be be resolved and the better overall experience your customer will have.


The bottom line is that we can't control when the A/C will die. But we can demonstrate a sincere desire to solve our customer's problems. To me, customer issues are really customer opportunities. Some of the most memorable and positive experiences I've had with a company is when something goes wrong and the company goes above and beyond to make it right.