TGIF...Getting ready for TGIM

Greetings and Happy Friday!

Today is a great day...and three specific reasons:

1. It's Friday...
2. Client work is rolling great
3. Monday is only 2 days away!

I know....sounds crazy right?  Well, when you have the benefit of working with great clients, both bank's and CUs, you have the best of the best in all facets of the work we can produce.

So...I have two items to share with everyone today...

(1)  Make today count!
(2)  Make those around you feel counted!

Simple words...but VERY impactful!  I just completed a proposal for a large potential client that deals with realigning their internal communications and the entire process reminded me how important those two simple steps can be to supercharge an organization.

Making Today Count!
We only have 365 days in a year...so we HAVE to make each on count!  How?  Put your best efforts forward, do things that are relevant, and MEASURE what you do.

Making Those Around You Feel Counted
This is all about empowerment.  We have all worked with people that have a "job" versus a "career"  Being the marketer, it is your mission to make sure everyone takes their job and their impact and sees it as a"career" while they are at your institution.  Share info, thank people for their efforts, communicate needs, ask for help...all small actions that make those around you feel counted!

Have a great Friday...and see you for a supercharged Monday!!

Cheers!

Bruce

5 Steps to B2B Marketing Success

By Holger Schulze

Major shifts are taking place in B2B marketing that started a few years ago but have accelerated in recent months – in the marketplace as well as inside vendor organizations.

Prospects and customers are becoming more sophisticated and better informed than ever before. They are tuning out a lot of the marketing noise they receive which makes it harder for marketers to reach audiences the old fashioned way. Customers are are in the driver’s seat today. This has profound implications on marketing and the way companies engage with prospects.

In the “old days”, the mainstream marketing approach was to interrupt and engage prospects, educate them on the vendors offering and move them through the sale cycle towards a transaction – a very vendor and product centric approach. Contrast this with the sophisticated and networked and community-embedded buyer today, who conducts research and talks with their peers in online communities long before identifying and narrowing down the list of potential vendors that can solve the problem.

These buyers and decision makers don’t want to get interrupted by a product promo email or a cold call that likely doesn’t come at the exact time they have a specific problem the caller can help with. And today’s customers are busier than ever. They want to be able to engage with a vendor when they are ready and actively seek out advice, often very late in the buying cycle, and have the vendor guide them through a complex buying and problem solving process - outsourcing part of the buying process to the vendor community if you will.

A simple 5 step program can help you refocus your marketing efforts and adjust to the new requirements for B2B marketing success:

Step 1 – Understand Your Audience
Customer focus begins with understanding your customer and their market environment. What business problems do they face? What are the drivers in their industry that impact profitability? Also make sure you segment your target markets according to demographics, psychographics, and business environment to identify the segments that are the best fit for your company's offering; segments that have the most to gain by becoming your customers.

Step 2 – Build a Strong Value Proposition
Build a strong customer-centric value proposition that puts your product and services in the context of the customer's problem, communicates the value you provide and your differentiators vis-a-vis competing alternatives.

Step 3 – Map Out Buyer’s Journey
Map the customer's buying cycle from problem awareness, identifying generic solutions, identifying potential vendors, selecting vendors that make the short list, evaluating solutions in detail and ultimately selecting a solution. Build a simplified model of your customers’ world, the journey they take from problem to solution. This exercise will help you understand how your customers are progressing through the steps of the buying cycle. What are their goals, concerns, what data do they need to move to the next step, where do they look for information?

Step 4 – Build Compelling Messages and Content
With this information you get a pretty good idea for how to influence the prospect along every step, how to educate them, how to guide them to purchase. Build a simple matrix of messages, marketing collateral and sales tools mapped against each phase of the buying cycle. Also add how you want to get your information to your audience - how will they find you. Focus on social networks and Google and special interest sites for the early phases; that's where buyers will often look first and find your content to make sense of their problem and the solution space and identify potential vendors. Make sure your content is problem and solution focused and doesn’t only talk about your product.

Build call to actions into each content piece to encourage your prospect to keep engaging with you as they move through the buying cycle. Also, make content easily accessible, especially in the early phase of the buying cycle where prospects don't care about specific vendors but want to understand their options and the implications of available choices to solve a problem. So let your educational content (white papers, Webinars) go free so it gets consumed and shared by prospects across social networks, don't hide it behind registration forms, but add a strong call to action into the content asset to move your prospects to the next interaction with you.

Step 5 - Invest in Marketing Automation
One size fits all mass email blasts, for example, don’t provide the level of return you are looking for. Marketing automation will allow you to have very targeted digital conversations with your audience triggered by prospect profile and behavior, driven by their buying cycle. Help prospects follow paths that you have defined to guide them, offering content that matches every step of their buying process from white papers and webinars in the early discovery stages to case studies, ROI studies and competitive comparisons during vendor selection at which point your sales will be heavily engaged in the relationship. With each interaction, you collect more data about the prospect which allows you to build a score to identify the hottest leads that you want to engage with directly and focus your time and sales resources on. With sophisticated analytics and reporting, MA tools will also give you insight into what is working and what not so you can adjust and improve your campaigns.

Buyers expect vendors to help them make sense of the options they have available to solve a particular problem, their pros and cons – a very consultative, solution, and customer centric approach to marketing and sales that is very different from yesterday’s paradigms. For marketing teams, this means engaging with prospects much earlier in the buying cycle, educating them long before prospects consider specific vendors, and matching each phase of the customer buying cycle with appropriate message, content and marketing tools designed to ease the buyers journey - from problem to solution and carefully steer them to the favorable outcome - to be selected by the buyer.

It also means using new ways to reach the buyer, including social networks. This approach requires much greater domain, industry and business expertise on the vendor side, to really understand the customer, which in turn requires more targeted segmentation, more intelligent messaging, better sales tools, etc. Time to get ready.

The Biggest Marketing Challenge of the Next 10 Years (Part Two)

The series continues as more experts weigh in on what they believe will be the biggest marketing challenge arts organizations will face in the next 10 years.


Jim Royce
Director of Marketing and Communications
Center Theatre Group

"Word of Mouth is Just Too Important to Ignore"

This is an economic time when every business and arts organization needs to look intently at its core audiences, ask yourself: what can I do to bring customers closer or more frequently to our product? How can I leverage their experience to generate more word of mouth or get it going faster and wider?

Oscar Wilde’s famous remark, “The only thing worse than being talked about is not being talked about,” is even more relevant in the age of social networking and ten-second sound bites. And the rules of spreading chatter have not changed: ya gotta have something interesting to spread around, it must be easily talked about, credible, respectful and satisfying.

People love to talk and when they have information or an opinion they think is worth sharing; they won’t stop talking. Your mavens are key talkers, because mavens thrive as influencers and need constant content. Often friends see them as informed and therefore they earn respect and attention. What do your best friends do to inform you of the cool things they’ve experienced or get you to experience?

There is plenty of evidence that shows if you can influence 150 people to spread enthusiastic chatter online, it will move faster than a newspaper circulation with a million readers.

It’s our job to educate, inform, and build interesting chat. Make no mistake: you can’t decide what’s remarkable to someone else. You can only hope your stuff is what other people think is remarkable and want to talk about.

Accommodate your core loyalists and mavens with new perks and incentives to keep their attention. Offer payment plans, free parking, extra tickets, cookies, anything customers may not expect that send signals we are in this tough time together and we want to reward “your” loyalty, especially now.

Spend more time on relationships with people who are infrequent attendees. They can be influenced by your evangelism in these tough times. Evangelism brings out the passion in your work.

Revisit or revitalize the attributes that make your brand stand out. Now is not the time to make big changes unless you see major advantages at the end of the recession. Consumers want stability and trust that says we are capable of delivering high quality and engaging productions.

Remember Malcolm Gladwell’s The Tipping Point? He spoke about ideas working like social or viral epidemics. They start small and grow because a few connectors or see something unique, but other people, tastemakers, spread them to gain wider attention and “remark-ability.”

It is the power of a lively context in which most people accept interesting products, events or ideas. Make them gain stickiness and their attraction grows exponentially.

I love Andy Sernovitz and Seth Godin. Both practice what they preach about word-of-mouth marketing and good strategic values. Andy’s classic remark haunts me every day: “People love to talk. They are talking about you and your stuff right now.” Yes they are. And Seth Godin’s famous book Purple Cow, made me a fan of him for life. (If you are driving down a long country road past herds of common ordinary cows, and all of a sudden one is purple, what would you do, think or feel? Do you have a purple cow?)

People talk to each other for advice, confirmation, and validation before committing to a significant decision or purchase. Value is a centerpiece in the customer’s mind and confirming value is critical to the sale process, particularly for high-cost experiences, like ours.

If you get excited about an arts event and you want to go, the next action is to talk about it with someone who will go with you. And you have to come up with a good reason to start the conversation. It’s up to us to help supply you with those opening lines.

WOM is more than just word of mouth. We have word-of-e-mail, word-by-blog, by Facebook, text messaging, YouTube, online search, and reader reviews in newspapers and Web sites. And this is all happening with a landscape of social networking options that have dramatically changed the way people chatter and inform themselves.

Sernovits says, “You’re getting talked about whether you like it or not. The conversation has started, so you might as well get involved. Word-of-mouth marketing only works if you have good products and services. It works if people like you and trust you. The best part, I’m convinced, is the more we participate, the more the conversation grows, and the more it becomes about us.”

It is our responsibility to provoke the chatter. Make sure tastemakers are an integral part of your audience makeup from the very beginning.

Make the chatter interesting and remarkable enough to spread. Participate through advertising, blogs, social networking, and the creation of online content to help fuel the word-of-mouth. We’re in the business of providing experiences people want to be engaged in and talk about.

Remember one of the key values of Google founders Sergey Brin and Larry Page: “Do no evil. Deliver more than expected.”

Finally, make your Web site rich with content – especially video – about your events and company brand. Spark meaningful word-of-mouth and participate honestly in the dialogue, even if it is controversial. For the consumer, make your e-mail a trusted and useful source of information, service, and most of all, full of sticky news people will want to pass along to their – not just promotion. Build stronger social networks and deeper connections in your community.


Eugene Carr
President
Patron Technology

The biggest marketing challenge arts marketers will face in the next decade is not technology, budgets, or audiences – it’s THEMSELVES. As the Web continues to evolve, arts patrons and consumers will have more choices and options literally at their fingertips. Will arts marketers step up and innovate, or be left behind?

A decade ago, in the middle of the dot-com crash, few would have predicted the rapidity with which the Internet would not only rebound, but forge unexpected and profound changes in how we now communicate with each other. In a short decade the very fundamentals of marketing have been challenged and reshaped.

During these past 10 years, the corporate world embraced this transformation much more quickly than did the arts. It wasn’t simply because they had more money, because the truth is smart Web-based marketing doesn’t need to be expensive. Those entities that the arts compete with for consumers’ time quickly recognized the potential that new technology could afford them, and made huge strides in improving their Web sites, generating paid Web traffic, selecting easier to use e-commerce technology, and investing time and effort in leveraging social media.

In fact, the commercial entertainment industry was one of the first to embrace social media. Even Broadway producers (not often known for innovation) are catching on. Though a few forward-thinking arts organizations have made strides in improving their online presence, not enough have.

According to our 2010 Patron Technology National Arts Patron Survey (March 2010), in which 10,000 arts patrons responded, only 20% indicated that they “always, or almost always” rely on arts organizations’ Web sites for their arts-going planning. And just 39% indicated that arts Web sites had improved in the last year. There’s a lot of ground to be made up here.

Looking ahead towards the next decade, I think it seems obvious that the rate of change wrought by the Web will continue to accelerate. In the next few years, the computer monitor will morph into your home television screen. Watching a live theatre performance or concert produced by a cultural organization streamed over the Internet will become commonplace. The Met Opera has already proven what that kind of thing does to generate demand for the live event itself.

Geo-location technology will also be a game-changer. Your mobile device will be able to tell you (while you sit at a restaurant checking your e-mail) what movies are starting within a mile of your location, in the next hour. Will arts events be listed as well?

Will arts leaders embrace changes like these and be like the creative entrepreneurial people they clearly are when they focus on producing for the stage? Or will they lag behind on the technology front and watch other forms of entertainment race ahead, as has happened during the last decade?

If arts marketers decide collectively to convince their boards and funding community that it is imperative that they get ahead of the technology curve, then there's a chance that the arts industry can blaze a trail that other entertainment art forms will envy.

The biggest challenge is not the change itself, but whether we've got the guts as an industry to embrace the change and go after it.

B2B Value Propositions That Resonate With Buyers

One of my favorite definitions of value proposition comes from Jill Konrath, author of Selling to Big Companies.  She says that a value proposition is, "a clear statement of the tangible results a customer gets from using your products or services."

Value propositions are a core element of your marketing strategy.  They describe how you create value for customers and, therefore, they are the ultimate source for your marketing content.  In fact, you can't create compelling marketing content until you really understand how you create value for customers.

Despite their undeniable importance, most companies don't do a good job of formulating and communicating compelling value propositions.  A recent survey of decision makers in B2B companies conducted by the Marketing Leadership Council of the Corporate Executive Board found that 86 percent of the "unique benefits" touted by sellers were not seen by potential buyers as having enough impact to create a preference for a particular seller.

In their 2007 book, Value Merchants, James C. Anderson, Nirmalya Kumar, and James A. Narus identified three basic types of B2B value propositions.

All Benefits - Essentially, a list of all the benefits that managers believe their solutions might deliver to target customers.  This type of value proposition requires the least knowledge about specific customers or competitors, but it has one major drawback.  This approach can lead managers to claim advantages for solution features that actually provide little real benefits to target customers.

Favorable Points of Difference - When managers use this type of value proposition, they attempt to differentiate their solution by identifying favorable points of differrence between their solution and the customer's next-best alternative.  While better than an All Benefits vallue proposition, this type of value proposition still has a major drawback.  It can lead managers to assume that all favorable points of difference will be valuable to a prospect, while the reality may be that many points of difference contribute little value to a particular prospect.

Resonating Focus - The third type of value proposition is called Resonating Focus.  Anderson, et. al. say that in a world where potential buyers are extremely busy, sellers must use value propositions that are both compelling and simple.  The basic idea behind a Resonating Focus value proposition is to identify the one or two points of difference (between your solution and your competitor's) that deliver the greatest value to the target customers.

Resonating Focus value propositions dovetail nicely with content marketing.  To begin with, companies that use Resonating Focus value propositions develop customized value propositions for various customer segments.  This is necessary because the elements of value that matter most are likely to vary based on the type of customer involved.

It's also possible to extend the Resonating Focus value proposition concept from customers (organizations) to individual buyers or buyer personas.  And when you develop Resonating Focus value propositions for each of your buyer personas, you will have taken a large step toward identifying the marketing content you need.

Nature Quotes to think about this Monday

"Every morning in Africa, a gazelle wakes up. It knows it must outrun the fastest lion or it will be killed. Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest gazelle, or it will starve. It doesn't matter whether you're a lion or a gazelle--when the sun comes up, you'd better be running."

~Roger Bannister

First man in history to run a sub-four minute mile

"Wolves do not aimlessly run around their intended victims, yipping and yapping. They have a strategic plan and execute it through constant communication. When the moment of truth arrives, each understands his role and understands exactly what the pack expects of him."

~Twyman Towery

Wisdom of Wolves

The thoughts for this Monday?

• Are you the lion or the gazelle?
• Have you hit this Monday running?
• Are you running around your competition "yipping and yapping," or are you following a plan?
• Are you constantly communicating your strategic plan to the rest of the pack?
• What is YOUR role in the hunt?
• Does your entire team know what the pack expects of them when the moment of truth arrives?

Thank God it's Monday!!!

Take care,

Eric

The Limits of Marketing ROI

For the past several years, B2B marketers have faced growing pressure to prove the value of their activities and programs.  CEO's and CFO's are increasingly demanding that marketers monitor and measure the results of their activities and calculate the return on investment (ROI) produced by those activities.

ROI is now seen as the "gold standard" for measuring the performance of marketing programs.  ROI has been used for decades to evaluate all kinds of investments, and it's widely accepted by financial professionals.  Some marketers believe that calculating the ROI of marketing activities will enhance their credibility in the C-suite.

Marketing ROI is certainly an important metric, but like any tool, it must be used in the right way for the right job.  There is no single "magic metric" that can fully capture the effectiveness of marketing.  So, it's important for marketers (as well as CEO's and CFO's) to understand the limitations of ROI for measuring marketing performance. I'll talk about some of the limitations and complexities here, but there are many others.

The basic ROI formula is extremely simple:

ROI = Return / Investment

The basic formula for marketing ROI (MROI) is almost as simple:

MROI = (Return - Marketing Investment) / Marketing Investment

Unfortunately, however, this simple formula hides a number of complexities.  For example, what does the term "Return" mean?  Total gross revenues or incremental gross revenues?  Total gross margin or incremental gross margin?  Total contribution margin or incremental contribution margin?  The best answer is incremental contribution margin, although incremental gross margin is also widely used.

But now I've introduced a new term - incremental contribution margin - that requires a definition.  Contribution margin is easy to define.  It's total revenues less variable costs.  The incremental part of the term is more complex.  Marketing ROI experts tell us that, ideally, a marketing ROI calculation will measure the incremental (new) returns produced by incremental (new) marketing investments.  So, supposedly, we can use marketing ROI to calculate the return on investment of an expanded TV advertising program, or a new direct mail program, or a new social media program.

Or can we?  How can we really know which marketing program actually produced the incremental (new) contribution dollars, especially when we are running several marketing programs simultaneously.  This won't always be a huge issue.  For example, if we run a direct mail campaign that incorporates a discount coupon, we can count the number of coupons that are actually redeemed.  But even this may not provide a completely accurate answer.  What if a new customer had already been predisposed to buy because of an earlier marketing program?  Should the discount coupon campaign get all of the "credit" for the new contribution margin associated with this new customer?

I am not suggesting that calculating marketing ROI is the equivalent of putting on a blindfold and throwing darts at a target.  There are, in fact, well-accepted methods for dealing with the kinds of issues I've just described.  I am trying to make the point that most marketing ROI "models" are based on numerous assumptions and judgment calls about the definition and the "allocation" of both returns and costs.  This does not mean that marketing ROI has no value.  It does mean that MROI often appears to be more precise than it actually is.

Use an Importance - Performance Matrix to Get Marketing and Sales Talking

In my last post, I discussed the importance of building a collaborative relationship between marketing and sales.  The first step toward achieving this objective is to establish where your marketing/sales relationship is today, and one useful tool for describing the "current state" of the relationship is an Importance - Performance Matrix like the one shown below.

This matrix is used to capture the opinions of individual marketers and sales personnel about specific marketing and sales activities.  Each activity is evaluated along two dimensions - the importance of the activity and how well the company (marketing and/or sales) is performing the activity.

The vertical axis of the matrix is used to describe the importance of the activity.  Less important activities are placed in the lower portion of the matrix, while more important activities are placed in the upper portion.  The horizontal axis of the matrix is used to describe how well the company is performing the activity.  Activities that the company performs poorly are placed in the left side of the matrix, while activities that the company excels at performing are placed in the right side.

An Importance - Performance Matrix will often reveal wide gaps in the views of marketing and sales personnel and point to the issues you need to focus on in order to improve the marketing/sales relationship.

To illustrate the kind of information that an Importance - Performance Matrix can reveal, I'll use a highly simplified example.  Suppose that we want to capture the opinions of marketing and sales personnel regarding the quality of leads provided by marketing to sales.  Also suppose that our company has four marketers and ten salespeople.  All fourteen people would complete a matrix, and then we would combine the responses in a single matrix.  Individual responses are not personally identified, but we do identify which responses come from sales and which come from marketing.

The results of this hypothetical example are shown below.  As you can see, both marketing and sales personnel view generating quality leads as important, but they differ significantly about how well marketing is performing this activity.

An Importance - Performance Matrix won't tell you how to resolve conflicts between marketing and sales, but it can identify the issues you need to address.