The Product Innovation Charter - Your Stairway to Heaven

Ok…the Product Innovation Charter (PIC) may not be the stairway to heaven, but it definitely leads to success. How can you know where you’re going if you don’t have a map to get there? That’s what the PIC is all about. According to a 2007 PDMA study, 29% of the firms interviewed had a formal PIC and 75% of the firms had some type of new product policy. This directly impacts the success of developing a new product. Let me throw two numbers at you: 50% and 21%. On average, 50% of new products in companies that have a defined new product development process will succeed, while only 21% of those without a defined process will succeed.

Needless to say, using a PIC to guide the development of new product strategy is a worthwhile investment. You may ask, “What does that have to do with me, a marketing professional? It’s simple – at some point, you may be asked to work on a product development or launch team. It’s critical to understand the purpose of the product and the associated marketing elements as well as how they all fit into the business’s strategy. This document will assist you in assessing, among other things, objectives, markets, and goals as well as developing pertinent product-specific success metrics and marketing strategy.

So what is a Product Innovation Charter? A typical PIC is a written document developed by senior management to chart the company’s new product strategy and guide the product team. It usually consists of four sections: background, arena, goals and objectives and special guidelines.

Background

• Validate the strategy and purpose of the project as it is aligned with the strategy.
• Elevator speech that answers “Why are we doing this project?”
• Guides the link of the project with the corporate strategy and goals of the business unit.
• Clarifies the role of the team in developing project/service.
• The logic of why the project is being pursued is outlined.

Arena

• Addresses “Where the game is played” and the technology.
• Defines at least one clear technology dimension.
  • Core competencies
  • Existing technologies
• Defines at least one clear market dimension.
  • Customer segment
  • Customer benefit
  • Distribution channel
• Defines competencies and competition.

Goals and Objectives

These should be operational, tactical and measurable.

• Long and short term
• Accomplishments
• Metrics
  • Profit
  • Growth
  • Market share

Special Guidelines

• Rules of the road
• Management requirements
• Legal/regulatory requirements

Don't skip the PIC! Make sure there's one in place and that you understand it. Your chances of succeeding with your next new product development project will increase substantially.

The NPD Process - It's a Stage-Gate Thing

“The best performing companies’ new product development (NPD) revenues range from 20%-50% of total revenues and more for profit.” – NP Learning, LLC
Do I have your attention?
First a quick explanation of “stage-gate process”. The stages are the periods during which the actual work takes place and should include specific milestones. The gates occur between the stages and are the decision-making points. Common gate criteria include:

Strategy fit Defined market need Market attractiveness Project feasibility Product advantage HES considerations

Risk-Reward analysis Determination of any show stoppers or "killer" variables Ability to leverage resources Appropriateness of action plan

Generic Gating Process. Illustration provided by Global NP Solutions.

The best firms are significantly more likely to use a structured new development process and innovation strategy to guide their new product development than the rest. What does that mean? It means that you are more likely to be productive and successful if you include the following six steps in your new product development and more likely to fail if you don’t. PDMA’s 2003 best practices study showed that 69% of the “best” firms report using a formal, cross-functional process for NPD. They were also seeing a significant decrease in time to market, especially for New-to-the World products, which went from 3.5 years to 2.

Stage 1: Opportunity Identification

This is when you identify potential markets, technologies and products that fit the organization’s strategy. The organization links the market and business strategic plans with the potential new product.

Key Activities	Key Deliverables
Strategy fit Market attractiveness Technical feasibility "Killer" variables	Product Innovation Charter Market opportunity assessment map Product roadmap

Stage 2: Concept Generation

Activities focus on generating product ideas or concept that will meet the market needs found in Stage 1. No idea or concept is too outlandish at this stage.

Key Activities	Key Deliverables
Problem-based ideation (brainstorming) Pursuing inside sources Pursuing outside sources Preliminary technical assessment Preliminary market assessment	Product concept statement Preliminary business case

Stage 3: Concept Evaluation

At this point, you should be evaluating the concepts generated in stage 2 and select the most attractive of them for further development.

Key Activities	Key Deliverables
Market requirements Concept testing Define product attributes Sales forecasting and financial analysis Capital requirements Quality function deployment	Product protocol Business case Project and resource plan

Stage 4: Development

Development of the new product is finalized and the product is manufactured. This should involve multiple personnel across several divisions. This stage may require investment for new facilities to produce the new product. Stage 4 is normally lengthier and more costly than the other stages.

Key Activities	Key Deliverables
Develop prototypes Product use testing Strategic launch planning Production planning Regulatory/legal issues Design for excellence (DFX)	Proven product prototype Updated business case with a high degree of accuracy (within 5%-10%

Stage 5: Launch

This is, for many, the most exciting stage of the process since the new product is being commercialized. This stage involves everything necessary to launch the new product. Key activities are oriented around the launch and ensuring appropriate inventory exists for the new product as it goes into full sale.

Key Activities	Key Deliverables
Implement the strategic launch plan Launch management Implement operations and ramp up to full-scale production Transfer the product to mainstream	Commercialization New product introduction

Stage 6: Life Cycle Management

This stage involves monitoring the product for success in the marketplace and making any necessary adjustments to it in the event it is not performing as expected. This stage is the one most likely to be skipped in the NPD process.

Key Activities	Key Deliverables
Monitor the new product Make refinements Augment the product to create a new product line if needed	Exit strategy Real-time metrics

Summary

Following a structured NPD process can improve time-to-market, decrease costs by allowing for the killing off of unfeasible products earlier on in the process, improve IRR and ROI and improve communication across all functional areas resulting in superior products that better meet customer needs. In the end, the question isn’t “Why use an NPD Process?” but rather “Why not use an NPD process?”

Demand Generation Using Social Media

First let me say that I don't use the terms "lead generation" and "demand generation" interchangeably as I hear many people doing. I define "lead generation" as the steps taken to build a marketing database for follow up. This often takes the form of registration in exchange for information. I define "demand generation" as creating a demand for an organization's products or service using marketing tools. Both are legitimate ways to create business; however, demand generation is more big picture. Unfortunately, marketers tend to focus on lead generation because that's how they're measured. Social media is a type of content marketing that focuses on demand generation, as defined above.

Here's an interesting little tidbit for you – I use Google's Keyword Tool to get competition results for variations on every blog title I create. When working on this title there were virtually no searches for the combination of "demand generation" and "social media"; however, when I replaced "demand generation" with "lead generation" there were consistent "high" competition results. I see that quite often – marketers getting caught up in the daily minutiae and forgetting about the big picture, but then people are more often rewarded for managing daily activities rather than initiating long-term strategies.

I'm a big picture person and I like to create long-term success so I thought I'd share a few tips I've picked up over the years on creating demand generation and supporting the sales cycle using social media.

1. Engage the Prospects

   This is developing a relationship with your prospects before they are leads. I cannot overemphasize this vital step. Nothing drives me crazier than having to register in order to see content, especially the first time I'm at a site. I don't know if the content is valuable and worth the extra effort. Companies lose me as a prospect all the time because I don't want to register just to find out the content isn't valuable. This doesn't mean that these prospects aren't qualified leads. They'll keep coming back for more information and be more willing to share their information with you. The goal is to nurture them in your social media as you would a known contact in your database.

2. Target the Leads

   You've turned your prospect into a lead. The job's not done yet. Now you know something about them and it's time to target your online content and conversations to be more relevant. You also have the opportunity to track these leads through other customer engagement efforts and implement or integrate social media using multiple channels.

3. Nurture the Sale

   You've been monitoring conversations and you see that a lead may be sales-ready. You've been paying attention to lead interactions and conversations and seen increased activity or intent. It's time to turn them over to a sales rep. Collaboration and communication is critical at this stage because there must be agreement on what a sales-ready lead is and when that lead needs to be turned back over to marketing to be further nurtured.

4. Support the Customer

   Just because the customer has made the purchase doesn't mean you're done with them. It's a marketing tenet that it's more cost effective to keep an existing customer than to get a new one. This is all about customer lifetime value. You know how to reach and what they've purchased. Follow up and send them tutorials, affirmative e-mails, or just answer any questions they may be posting on your social media sites. They want to know they made the right decision and that you are there to support them if they have questions or issues.

Remember, social media is relevant through the entire buying cycle. The more you interact with your customers, the more likely they are to buy from you. They're looking for a reason to buy from you. Give them one. And once they buy, support them. This will position you as a trusted resource and a thought leader. Qualified prospects will reach out to you when they are ready.

Oh...one last small item – measure the results! Don't forget to have all your metrics in place so you can track where people are coming from, going to, and how much time they're spending on which pages. Just because this is social media that doesn't mean you can throw the analytics out the door. It's critical to be able to trace the path of your prospects as well as to be able to measure ROI, conversions, page views, click thru rates, etc.

If your social media effort feels like you're just goofing around online...you probably are. ;-)

Three Reasons to Use Social Media

I recently took a position with a company that is a little behind the times when it comes to their marketing. I found out how behind the times when I suggested to my boss that we implement a social media strategy. His response: "What's social media?"I knew in that moment I had my work cut out for me when it came to convincing him he needed to add interactive marketing in his mix.

Shortly thereafter, I had the privilege of sitting in on a round table hosted by the South Denver Metro Chamber of Commerce and Webolutions that was focused on social media. I was able to ask my peers their thoughts on overcoming resistance to social media. The responses were varied and interesting. I won't go into all of them, but I'll pick out three that really caught my attention, that I thought were outside the regular channels of overcoming resistance to a new idea, like throwing numbers at the problem.

1) You Can Work While You are Sleeping

Everyone knows that the blogosphere, tweetosphere, Facebook, and other forms of social media evolve, dialogue, and function when we're asleep, but I've never heard it put quite so succinctly, as when Webolutions Founder and CEO John Vachalek said, "Tell them they can continue to work while they are sleeping." Think about it...you're sound asleep and other people are promoting your product or company. You wake up in the morning to multiple conversations that have taken place through the night. They might be positive and they might be negative, but each one is an opportunity to create interaction with current and potential customers.

I have yet to introduce the idea of social media to an organization that is unfamiliar with it that didn't respond with, "We have no control. What if someone says something negative about our company?" Well, what if they do? This brings me to the next point.

2) Negative Comments Can Add Credibility

We've all gone online to review companies or products and seen postings or reviews that go on forever with nothing but positive to say. My first response is...they can NOT be this perfect. These must be paid reviewers or posters. As someone at the round table point out, negative comments make people feel better about a company or product. That sounds backwards, doesn't it? But think about it. Isn't there a certain comfort level in finding a company that has a few negative comments that have been addressed? Yes...these customers may have had a less than stellar response initially, but the company was responsive and addressed their concerns. That actually builds up credibility, equity, and reputation. It gives insight into the company and its values. That brings me to my third interesting reason for engaging in social media.

3) It's a Better Way to Tell a Story

We're all familiar with the phrase, "actions speak louder than words." A company can identify itself all over its website and other collateral as being customer-oriented, but it doesn't mean a thing if it doesn't follow up on those promises. Sure, we all like to go to a website to see what the company is about, but it's so much more fun to go on a Facebook page or look at the tweets to see how the company is really performing. Are they really responding to customers? Are they truly participating in events that give back to the community? What's going on in the company and who are the people behind it? Social media creates transparency, engages the customers, and lets them get to know the company. Customers are looking for a reason to buy from the company. Sometimes that reason is a tweet or Facebook post that says, "My grandson just got into CU" and the reader happens to be a CU alumni. There you go – a reason to buy from the company.

The Japanese have been practicing social media for longer than it's been around. They just didn't call it that. Business letters always start with a paragraph about the recipient's family or other non-business, personally-relevant topic. They've known for centuries the way to do business is to engage their customer, create a dialogue, and enter into a relationship. The rest of the world is just catching on and doing it digitally.

Social media can be very scary for companies that are used to controlling every aspect of their identity. What they need to understand is, even when they feel like they are not in control, they are. They control how they respond and thus, how the world sees them. Companies that fail to engage their customers are companies that will fail. There's a good selling point for you.

Find Your Online Voice

It's not what you say. It's how you say it. If you've ever taken any writing classes, you'll hear that repeatedly. Instructors will talk about tone and voice to convey certain feelings and create certain reactions. If you've spent any time at all on social media sites, you'll recognize there are a lot of different styles out there. What you won't typically see, though, is the tone you used in your final paper for a class or Emily Post's perfect diction. What you should see is a reflection of the brand.
Rebecca Lieb, in her book Content Marketing, quotes Patricia Redsicker's example of Martha Stewart versus Emeril Lagasse. "If I read an article on how to braise a chicken from Martha Stewart, I expect a formal, scholarly, exact approach. If I read Emeril Lagasse, I expect a casual approach with recipe flexibility and punctuation - BAM!"
Their voices are distinctive from one another and reflect the personalities and brands we've come to associate with each of them. Martha Stewart is proper New England hostess and Emeril is down home Cajun. What's critical is that, even in the social media platform, the two brands have maintained the relationships they've developed with their audiences and the voices are genuine. That should be the basis for any social media or content marketing effort.
What an online voice should not sound like, says Lieb, is:

• A formal newspaper article
  
• Edward R. Murrow
  
• A legal brief
  
• An instruction manual
  
• Your senior thesis
  
• A sales brochure
  
• A commercial

These aren't bad voices, in and of themselves. They're just not appropriate for an online presence. What you should be striving for is an informal, positive and upbeat voice - but without diverging too far from your organization's true personality. The voice should also be adaptable. Twitter almost requires the use of the more common social media shorthand; while a blog gives you room to have an entire conversation in regular English.

The Spokes-Character

This technique doesn't work for every company, but some have succeeded beyond expectations by adopting a spokes-character. The first best example to come to mind is the Travelocity Roaming Gnome, which is voiced by a 26-year-old American woman. The Gnome goes on trips, gets photos taken, tweets responses to The Amazing Race, which is sponsored by Travelocity, and celebrates his birthday. Senior Marketing Manager Karrie Fox said the Gnome was created to be a "fellow traveler" and to create a relationship with Travelocity's customers.

A spokes-character needn't be a creature, either. It could be a generic compilation of the target audience. Perfect examples of this are the PC and Mac guys from the Apple commercials. Apple wrote the commercials so of course their guy is the cooler of the two, but they're both designed to be a representation of the target audience - as viewed in the Mac Universe.The point is...make your voice engaging and interesting. Create a dialogue not a monologue. Keep it informal and upbeat, but maintain a style that will appeal to your audience.

Your Best Content Strategy is Thought Leadership

Reblogged from Geoffrey Colon, Vice President, Social@Ogilvy / @djgeoffe / futuristlab.tumblr.com

So many people I have spoken to as of late complain about the term “thought leadership. They are always asking, “what does it really mean and where does it get you?” B2B companies have known about this terminology for almost two decades and it has led to a lot of their content creation. In the B2B space, companies don’t make on-the-fly purchase decisions. You just can’t when you’re looking to overhaul your server systems at $4 million a pop. So you read up on what experts have to say on the subject. Maybe watch them give a speech or follow their Twitter feed to see what they are curating. These experts have been given names including influencers, champions, advocates, guru or even what I call myself, Subject Matter Expert or SME for short.

Why should your business be doing thought leadership? And who should do it? Well, to say it in short, everyone. Because thought leaders should be your entire organization. Not simply those at the top of the company. The best way for your company to transform is to crowdsource and collaborate as much as possible. Make everyone a part of the process in the new way of thinking about business. The other reason is thought leadership is your best content strategy. People want to feel like a company is larger than simply selling software or soda. They want to identify with it as a transformer of culture or the world at large. So here are five reasons on how to turn thought leadership into content. Have any ideas of your own? Feel free to join the conversation. After all, thought leadership means little if there isn’t a larger conversation around the subject.

1. There is a lack of thought leadership in the world. Only 30% of companies use it now. That’s a small figure. And of those an even smaller percentage use social to amplify this thinking. So if you write it or video record it, amplify it on Facebook, Twitter, LinkedIn, SlideShare, etc. People enjoy this thinking and want to share it.
   
2. The largest return that a company can generate comes from not just displaying expertise but having superior services that help your clients. Thought leadership is that inroad to a potential or current client saying, “this is exactly what we want. A thinker who can also act on that thinking and execute it for us into a meaningful solution. But they can’t get turned onto this thinking unless they actually see it. And where they see it is on your social channel.
   
3. People are drawn into thought leadership because it’s editorial made for sharing.Content comes in all sizes and shapes but if it’s a passive piece of content will it reverberate within your community? Thought leadership looks to get a rise out of people. If it doesn’t it’s not leadership. The reason being is thought leadership is innovative, ahead of the curve and sets a bold new path where no one has gone before. That meets resistance from systems that don’t want to bend to change. And with that resistance comes conversation around the topic. And from conversation, sharing. And from sharing, invitations extend to more people to discuss your POV on the issue, subject, category, product, initiative, etc.
   
4. Thought leadership comes in many shapes and sizes. Many think it’s still a boring white paper. But the best is now video sermons, Tweetchats, Q&As, infographics and more. The way you serve up your thought leadership is packaged as content. It’s not simply words on a paper.
   
5. You become the conversation piece. Thought leaders don’t simply publish then sit back and move onto the next piece of content creation. Nor do those who consume such content not have an opinion. Content should be engaging. Thought leadership has this built-in so it instigates people to react. It’s a modern day futbol match. There are always two sides. One side may react in many ways generating additional reactive content that keeps your brand or company as the focal centrepiece around the topic. And when people are talking about the topic that you generated within the social environment, that’s a level of conversation that many pieces of general content can’t create.

Failure is the Road to Success

Typically my blog entries are focused on marketing, but the idea of failure has been weighing heavily on me lately. Every time I turn around, it seems, there is some new quote about failure making an appearance. It came up not too long ago in the copy of “The Happiness Project” I’m reading. One of the tweeters I follow, @AllisonMaslon, posted something about failure. All these messages keep talking about how failure is the road to success. Two of the messages that resonated with me particularly are:

• Courage is realizing that each failure merely brings you that one step closer to eventual success.
• If you aren’t failing, you aren’t trying hard enough.

I read these and yet I can’t forget that in today’s culture failure carries a negative connotation – but primarily only with adults. Children are permitted failure, and the message given to them is clearly “Failure is expected and will lead to success.” As with every generality, there are exceptions: the abused child or the child expected to live up to someone else’s expectations, but we must remember – these are exceptions.

Think back to when you were small and learning something new. One of my experiences was learning to hit a baseball. I missed and missed and missed and yet there was always an adult there encouraging me with phrases like “No one gets it right the first time” or “Don’t worry, you’ll hit it the next time” or “Keep trying, everyone fails at first”. My dad, to paraphrase him, gave new meaning to the phrase “It’s not how many times you fall down that matters; it’s how many times you get up” when learning to ride a bicycle. The message is very clear – and the complete antithesis to the message delivered to adults in today’s culture. It is truer, I think, in the work environment than elsewhere.

When was the last time you made a mistake at work undertaking a new task and someone said, “I know this is the first time you’ve tried this, so just give it another go”? It’s more likely you walked away wondering what sort of negative impact your failure had on your boss’s perception of you. You may even have been reprimanded in some way for failing to get the new task right the first time.

As a general rule, people hustle and hustle and keep their heads down, hoping to just get by. Standing out is dangerous. Fear of failure is the stuff of mediocrity and an organization that implements a culture of fear is slitting its own throat. Empowerment to fail is the hallmark of a nonthreatening environment and an environment that recognizes the whole is greater than the sum of its parts.

I see this type of activity every day and I wonder how anything new is ever innovated in corporate environments. Entrepreneurial environments are completely different animals. You can’t compare the two. It’s a rare corporate environment that doesn’t have processes in place designed, intentionally or unintentionally, to keep people from proposing and implementing new ideas, processes or strategies.

If we return to the process of our childhood when failures were accepted and encouraged as something to get past, rather than something to be reprimanded for, how much more improvement and innovation would there be in companies? Suddenly the person who steps up and makes a suggestion for improvement is rewarded, even if the idea isn’t initially successful or practical for implementation. Even in that failure, that person has been a success because perhaps that person inspired the next person to step up and his/her idea IS successful and saves the company time or money.

Or how about looking at the reason for the failure? It is our nature to focus on weaknesses rather than strengths. We traditionally seek to compensate for perceived weaknesses rather than learning to excel using our strengths. Perhaps the failure is the result of a person with a talent for strategy and seeing the forest rather than the trees having found him/herself in a position where the need is for details and seeing the trees rather than the forest. Move that person to the right position and suddenly excellence and success is the norm for that person.

The road to success IS paved by failure, in many shapes and forms. Though society would like to enforce its definitions upon each individual, we need to remember that they are personal definitions and individual benchmarks. One person’s failure may be another’s success.

If you want to be a success, it takes courage – be willing to step up and fail.

Product vs Solution Marketing

Product Marketing

Product marketing is a more traditional way to look at marketing. Typically it encompasses the first four Ps of the marketing mix: product, price, place, and promotion. I've heard it said that's laughably vague, but when you consider everything necessary to market a product, vague may be necessary to encompass all aspects of expertise.The product marketer promotes the features and benefits of a product without really considering all of the needs of the target persona. I don't mean they're ignoring those needs with respect to the product, but they may not think about contingent needs. The product marketer simply doesn't consider partner products, services or other components common to solution marketing in the product marketing strategy. Because of this, the person undertaking this kind of marketing needs to be an expert on their product in every capacity including market research and strategy, technology, competitor offerings, tactics and analytics. This allows for product-based differentiation and positioning rather than solution-based.

Solution Marketing

Solution marketing, on the other hand, takes those features and explains how they are going to benefit the customer and offers an entire suite of options available to them in order to answer whatever needs the customer has – in their entirety. In other words, the solution marketer not only needs to understand the product but also the segment or industry landscape, the partner products, industry trends and how they all fit together. In addition, a solution-oriented marketing strategy is typically an enterprise-wide undertaking, so the professional must be able to operate in a much more cross-functional leadership role. Steve Robins, the founder of solutionmarkingblog.com explains it this way in his presentation Introduction to Solution Marketing:

	Product Marketing	Solution Marketing
Product	Features and Benefits Best features Newest capabilities Technically advanced Fastest processor	Customer Needs Streamline processes Improve customer service Lower costs Ensure compliance
Promotion	Push or Outbound Marketing	Customer Engagement
Price	Cost Plus	Cost vs Benefit

As you can see above, the 4Ps can still apply to solution marketing but I think they could be better updated to reflect the more customer-centric paradigm. We replace product with solution; promotion with engagement; price with value; and place with access. These four elements are much more reflective of how we need to update our marketing techniques to better engage the most current generations of X, Y and Z. They expect an experience not just a product.

The fact that we are asking more encompassing questions doesn’t change the process we go through in order to answer those questions but we do have to step into our customers’ shoes. We need to understand how to solve their problem so we need to be able to look at the bigger picture. It’s no longer “They need their CRM software to have features 1, 2 and 3” but rather a more all encompassing, “What regulations are there? What is their current system not doing? Will they need training? Is there a partner product that will fill a need we don’t quite have the answer to? Will it integrate with their other applications” and more.

We no longer push the information out to them with interruption marketing but rather engage them in a dialogue. We research where our customers are going to learn about our products. We find out who they’re talking to and what they’re watching. This is true whether we’re marketing B2B or B2C. The B2B customers are paying attention to what the end-users who purchased the product from the distributor are saying, just as much as the B2C customers are listening to their peers.


The price is no longer necessarily based in an “I get this many features for this price” mentality. The customers want to know not only what the features are, but is the product the right fit for the job and what else comes along with it. They’re no longer as willing to pay a higher price for unwanted features. They are willing, however, to pay a higher price if the product comes with extra training they need, or it integrates easier with software they already have in place, or a technical support plan is offered. Our customers want a value package for their money, not just the assurance that, “Yes, this product has all the features you need and it will integrate with XYZ software”.


Finally, we need to know where they want to purchase the item and how they want it delivered. We need to know if they want to buy direct, through a reseller, maybe on contract or any number of other channels. Once we know that, we need to figure out how they want it delivered. Do they want instant download? Maybe they want it shipped. And in the end, maybe there are new channels that we didn’t know about that we can take advantage of.

Conclusion

Solution marketing requires a much more in-depth approach than product marketing, but in the end, it’s the more effective strategy. It increases the customer lifetime value and satisfaction as well as increasing brand equity. The value is perceived as higher so margins increase and, taking the entire ecosystem into consideration, the potential is there for a more differentiated offering. Back in 2003, McKinsey & Company estimated, in their August 2003 McKinsey Quarterly that it could result in a 3-7% increased return on sales, but I wasn’t able to find any updated results.

Demystifying Content Marketing

Content marketing, according to the Content Marketing Institute, is “creating and distributing relevant and valuable content to attract, acquire, and engage a clearly defined and understood target audience - with the objective of driving profitable customer action.” In other words, it’s communicating with your customers and prospects without selling. That newsletter you receive every week that gives you “how to” tips or shares industry trends, or tells pet adoption happy ending stories – that’s content marketing. The hope behind this strategy is that the recipient will reward the purveyor of this valuable information with business and loyalty.
The challenge with this strategy is knowing where to start and what information to send. In theory, this is an uninterrupted stream of information going out via whatever channel, or channels, you select. That’s a pretty high demand on your resources if you try to deliver custom information to every segment. I’ve broken that down into a more manageable process:

1. Simplify content management
   
2. Analyze personality segments
   
3. Establish the content production process
   
4. Focus on relevant data

Simplify Content Management

Sure, you have customers and prospects everywhere. You can’t turn around without running into one. But the question is, where are they congregating? It’s like going fishing. You’re sitting at the top of a river and you can see all the subsidiaries downstream. They all look promising but after a little observation you notice that all the fish you’re after are located in two or three places. Those are the places you want to cast your line. The same is true of content management. Just because you can disseminate through twitter, facebook, blogs, or more traditional print media, that doesn’t mean you should. Find out where your fish are hanging out. Whittle it down to a few major sources. That’s where you concentrate your energy.

Analyze Personality Segments

Psychographic segmentation is a great tool for breaking down what information you want to send out. The confusion comes when you try to create a different strategy for each personality segment. There can be a huge number of variables you have to deal with when it comes to your buyers – so don’t create a strategy based on each personality segment. Look for commonalities. You may find that two, three or four overarching content paths that will resonate with the largest percentage of your customers and prospects. And you may even find yourself adding demographics to create the best picture.

Establish the Content Production Process

We’ve all been there. You need to write some content for a channel. You whip it out and think it’s great. You’re ready to post. Oh, wait…you forgot something – the review. And now you’re behind on your schedule. As with most things, having a formal process in place to manage collaboration and production will smooth the road. Don’t get me wrong, I’ll be the first to admit that one of my favorite things is to review and streamline processes, but for the most part they’re in place because they work –at least to some degree. Figure out what your demands and resources are. How much time does the project require? How many people do you have on your team with the necessary skills for the project and how much time can they give, respectively? You might have to cut back on the scope of the project a little or you may be able to expand, but there are your demands and resources. Then you formalize your actual process. Typically that means going from writer to editor to final to publish to promotion. Specify who does what and how long they have to do it. Thanks to CMI for this great illustration:

Focus on Relevant Data

Finally, you’ve got your message out and you’re starting to see returns. Great! I love information. I love seeing it come in, putting it into a visual format, analyzing it and using it to adjust my strategy or design to maximize my return. Not everyone loves numbers, though, and even those of us who do know we need to pick and choose. You need to decide which data is most relevant to what you are trying to achieve. For me, that usually means conversions, traffic sources, key words, popular content, exit pages and traffic comparisons.

• Conversions – I like to know what content is successfully achieving the desired actions. Sometimes that means clickthroughs; sometimes that means a phone call off of a sell sheet; and sometimes it means something else. The point is, I need to leverage what’s working to increase my ROI.
  
• Traffic Sources – This helps me figure out where to spend my dollars. I may shift my spending from one ad to another or away from postcards and into webinars. Maybe those Google AdWords you’re spending an arm and a leg on simply aren’t working.
  
• Key Words – This is probably pretty self-explanatory. Look to the ones that are working and leverage their exposure and use. Eliminate the ones that aren’t. It doesn’t hurt to look at your key phrases as well.
  
• Popular Content – Again, you need to know what’s working and what’s not. If something isn’t working, rework it or replace it. I repurpose content that’s working in one channel for other channels, if it isn’t already in use there.
  
• Exit Pages – For whatever reason, if you see a high percentage of exits from a particular page, there’s a pretty good chance something on it is losing your audience. It might not be pertinent to them or it might not be presented in such a way as to hold their interest. Any way you look at it, something needs to be done to keep them looking at your content.
  
• Traffic Comparisons – This is a great overview tool. It will tell you if your traffic is up or down. You can compare to the same time period from the previous year or just look at how traffic is doing on a continuous basis.

Small Bites

Like any other large project or undertaking, looking at Content Marketing in its entirety can be a little bit frightening and overwhelming. If you break down into its component parts and then focus on the most relevant aspects of those parts, it’ll seem a lot more manageable.

Relationship Marketing Has Gone Mainstream

If you aren’t relationship marketing, you’re missing out. Sure you need to generate your leads and bring in new customers, but it’s much more cost-effective to keep the customers you have. Relationship marketing is all about that. Relationship marketing strategy should be designed to inspire customer loyalty, engage the customer, and promote interaction.

The Cross-Functional Approach

You’ve heard of cross-functional teams, particularly when it comes to producing a product. In that situation a team is responsible for the entire production of the item, from beginning to end, rather than being segmented so that one person is responsible for only one step in the process. Relationship marketing is cross-functional. Ideally, it involves all aspects of the organization.

Martin Christopher, Adrian Payne, and David Ballantyne[3] at the Cranfield School of Management claim that relationship marketing has the potential to forge a new synthesis between quality management, customer service management, and marketing. They see marketing and customer service as inseparable.

I had an experience this morning that cemented that for me. I am in the process of conducting a customer satisfaction survey for one of our companies. Upon receipt of the invitation, one of our customers sent back a response in which he complained of some issues he was having so he couldn’t give us anything but negative feedback on that company. Because I am a relationship marketer, my response was to do a little customer service. Ten or 15 years ago, I might have sent that over to customer service to handle, but that’s not what I do anymore. That customer reached out to me, so it’s my responsibility to do what I can to assuage the situation. I absolutely vetted my response, but I handled it. It’s part of my relationship marketing strategy.

Customer Retention

So you’ve got the customers. Now what? Keep them. It costs almost five times more to acquire a new customer than it does to retain an existing one. It doesn’t matter if this customer is Jane Doe who lives by herself with her dog, a multimillion dollar business you distribute your manufactured products to, or even a low-bid contractor. You all have customers that you can work toward retaining and client relationships that need to be managed – even the low-bid contractor. Steven Howard, of Howard Marketing, puts it beautifully into the 7 C's of Successful Customer Retention:

• Caring Attitude – Let the customer know they are important and that you really want to help them.
  
• Customized Practices – Do what you can to meet your customer’s specific needs. Sometimes that involves flexibility, simpler forms and understanding the customer’s relationship with the company.
  
• Competent CSOs/CCPs – Put people in place that are accountable and willing to take action. People who are knowledgeable and meet commitments are priceless.
  
• Call/Visit Once – Don’t make your customer explain the problem more than once. Their initial contact should be the one point-of-contact for the customer.
  
• Convenient Access – Structure your personnel’s hours around your customer’s needs. Contact information should be easy to find and understand, as should your website, and your ordering process, etc.
  
• Compressed Cycle Times – Fast turnaround times, responsive customer service and proactive services go a long way toward making your customer happier.
  
• Committed Follow Through – The first contact person follows up with the customer to ensure they are satisfied. If contact was due to a problem, they do their best to see the problem or error isn’t repeated.

When Is It Too Much?

Sometimes, as cold and calculating as it sounds, you have to let a customer go. When it comes right down to it, you are running a business. You need to weigh what it’s costing you in time, energy and money to retain that customer, versus their value. It’s one thing if you have a high maintenance customer who is bringing a lot to your bottom line, but, and this is a cold hard truth, sometimes you have a high maintenance customer that doesn’t bring much to the bottom line, so they end up costing you more than they are bringing in. I’m a little guy, so I hate saying that, but I owned my own business for a while so I know from whence I speak.

Another thing you can do is talk to your employees. They’ll know which customers have a bad reputation; which ones are costing them time better spent elsewhere; which ones are abusive and negatively affecting morale. When productivity and morale go down, so does profitability. That’s a fact.

Sometimes...you have to fire the customer.

For more information on Steven Howard's 7 C's of Customer Retention you can watch this video:

Choosing Your Cause Partner - The Four Pillar Approach

A lot of companies make the move into cause marketing by simply looking for an organization that’s a good match for them. Joe Waters, one of the authors of Cause Marketing for Dummies, calls that the Garanimals approach. You remember those? Choose the same animal on each item of clothing and they should match. That’s definitely a consideration, but I don’t think it’s the first thing you should look at...rather, make it the last. Like any other marketing strategy you undertake, you should have a plan. I like the 4-step approach.

1. Choose Based on Passion, Support, or Appeal (Waters, Cause Marketing)
   
2. Cultural Fit
   
3. Fiscal Responsibility
   
4. Program Impact

Choose Based on Passion, Support, or Appeal

Follow your organization’s heart. You notice that I say “Your organization’s heart” and not “your heart”. You need to pick a cause that the bulk of the people in your organization can get behind and have passion for. If you choose saving the Lesser Known Spotted Horney Toad from extinction because the CEO is passionate about the cause rather than choosing the Red Panda Rescue when 70% of the company thinks that’s an important cause, you made a bad decision. You’ve given up the multitude of advocates in favor of the one.

If no one cause stands out, select one that has a large following. These are people you want to connect with your business. If you partner with a cause that has loyal active supporters, they’re much more likely to be drawn into supporting your organization.

If you don’t feel passionate or can’t choose a cause with an active support base, then choose a cause with a strong emotional appeal. What’s a more emotionally powerful message? That your nonprofit rehabs meth houses or that your nonprofit cleans up oil spills and saves animals from death?

Cultural Fit

You’ve narrowed your cause partners down to a select few. Now what? They need to be evaluated for how they fit with the marketing culture you’ve created. Take a look at their ads, website, social media efforts and other marketing strategies. Are they in alignment with your organization’s mission and message? Is their message and branding consistent? And how do they deal with their other cause partners if they have any? This will go a long way in determining how successful you’ll be in partnership with them.

Fiscal Responsibility

Evaluate the nonprofit’s ratings in Charity Navigator, the BBB for Charities and Donors and Guidestar. Look at the board members and their reputations. Evaluate their operating performance for the last two or three years. These will efforts will provide you with enough information to determine the organizations ability to run smoothly and maintain their current reputation. It also shows you what they spend on programs versus administration.

Program Impact

The last piece of the puzzle is to look at where the organization’s programs have impact. Are you looking for an organization with a global footprint? Maybe you want something local. Or possibly you want an organization that has a global footprint but visible local impact. Any way you look at it, it needs to meet the needs of your plan and the kind of exposure you want to develop or enhance.

Don’t Forget…This is a Partnership

In the end, you still have to decide what kind of partnership you want to have with the nonprofit. I support a true partnership, not one where the for-profit is dictatorial. Listen to the nonprofit about their past experiences. Be transparent about who your company is, changes taking place, sales and goals you want to accomplish. This is like any other partnership: you need to get buy-in from the stakeholders. They want to know they’re maximizing their benefits just like you like to know you’re maximizing your profits and benefits.

Cause Marketing Explained

Thompson and Pringle, in their book Brand Spirit, define cause-related marketing (CRM) as a partnership between a for-profit and a non-profit business for the mutual benefit of both. This form of societal marketing is practiced by any number of large companies including Patagonia, American Express, Marriott and PetsMart. Of course, when it comes right down to it, it’s not quite that simple.

What Cause Marketing Isn’t

Cause marketing isn’t philanthropy. You notice I said “for the benefit of both” earlier. When a company supports a philanthropic cause, it does so without the expectation of generating business, although they may expect a positive impact on brand equity. It also isn’t societal marketing, although it does promote societal benefits. The difference is that societal marketing is in the nature of “Don’t do drugs”, “Don’t drink and drive”, “ Stop smoking” and so on.

Benefits for Non-Profits

There are a multitude of advantages available:

• Increased revenue
  
• Enhanced visibility of the cause or the nonprofit’s message
  
• Increased volunteer pool
  
• Access to new audiences
  
• Connections to the corporation’s network of employees, suppliers, distributors, and other contacts
  
• Expertise in marketing, strategy development, and other corporate experience

Benefits for Businesses

The many benefits of cause marketing for businesses of all sizes include:

• Greater awareness for company product or service
  
• Increased sales
  
• Access to new audiences
  
• Competitive advantage
  
• Increased brand image and awareness
  
• Higher employee retention
  
• Highlight to be used in employee recruiting
  
• Opportunity for new strategic partnerships
  
• Technical expertise from nonprofit partners
  
• Training and development opportunities for upcoming company leaders and staff

Consumer Perception

According to Cone’s 2010 Nonprofit Marketing Trend Tracker, More than three-quarters (78%) of Americans believe a partnership between a nonprofit and a company they trust makes a cause stand out. When the cause breaks through, consumers are more likely to feel positively about the nonprofit (56%) and actively support it. As a result of nonprofit-corporate partnerships:

• 50% are more likely to donate to the nonprofit
  
• 49% are more likely to participate in an event for the nonprofit and
  
• 41% are more likely to volunteer for the nonprofit.

According to Cone’s 2010 Cause Evolution Study:

• 83% of Americans wish more of the products, services and retailers they use would support causes. In addition,
  
• 80% of consumers are willing to switch from one brand to another brand that is about the same in price and quality, if the other brand is associated with a good cause.
  
• 61% are willing to try a new brand or one they’ve never heard of if associated with a cause.

Employee Engagement

Employees are what you would call “cause shareholders”. They are invested in what their company is doing. They are willing to roll up their sleeves and get their hands dirty to support causes that are important to them. Going back to Cone’s Cause Evolution Study, “Employees who are very involved in their company’s cause program are 28 percent more likely to be proud of their company’s values and 36 percent more likely to feel a strong sense of loyalty than those who are not involved.” Companies who are not engaging their employees are clearly ignoring an untapped resource.

The Win-Win Scenario

The question now isn’t “Why CRM?” but “Why not CRM”? With this information in-hand, how can you afford not to look seriously at a cause-related marketing strategy? There’s no question that it’s beneficial to both partners for both the soft and hard bottom lines. In my next post we’ll take a look at things to consider when looking for a partner for your CRM strategy.

Google AdWords Bidding Basics

So...you've heard about this "new" thing - Google AdWords. It sounds pretty exciting. It sounds like you get a lot of bang for your buck. Your ad shows up on the page that is returning pertinent search results. An ad can show up anywhere on any of the pages returned. The more you are willing to pay, the better your page position will be. Page position is auctioned off, but you can get better page position with higher quality AdWords, too. You only pay if someone clicks on your add. So, what you do is tell Google AdWords what your maximum cost-per-click and daily budget is. It then places your ad accordingly and when you’ve reached your daily budget, it pulls the ad. You can make the ads local, national, or international or base it on language. Of course the broader the audience, the more money you are going to spend.

But how, exactly do you go about getting space? Well, you bid on it. And the thing is, you don't necessarily win your space based on how much you bid, but also on the quality scores of your words and landing page. Let's start with the basics: the bidding.

Bidding

You can use the Google Traffic Estimator Tool to figure out an approximate result based on the keywords you select, maximum CPC, and daily budget. The more popular a keyword is, the more you're going to pay for it. The suggested method of figuring out how much you want to spend AND maximize your profits is:

1. Determine our maximum Cost Per Acquisition(CPA): (Sale price – cost of product = CPA)
   
2. Determine conversion rate: (number sales/number of clicks)
   
3. Determine value per click: Max CPA * conversion rate = value per click (expected profit from website visitor)
   Value per click is what you can pay per click and expect to break even, so naturally we wouldn’t want to pay that much.
   
4. Adjust your bids so your value per click equals your incremental cost-per-click.
   The incremental cost per click is the difference between what you pay for per click at one bid versus at another bid. Not very clear is it? This table was generated using the Google Bid Simulator Tool, which is only available if you have an AdWords account:

Bid	Clicks	Cost	Avg. CPC	Revenue	Profit	ICC
$5.00	208	$697.42	$3.35	$1040.00	$342.58	$5.73
$4.50	190	$594.27	$3.13	$950.00	$355.73	$5.20
$4.00	154	$407.02	$2.64	$770.00	$362.98	$4.63
$3.50	133	$309.73	$2.33	$665.00	$355.27	$3.99
$3.00	113	$230.00	$2.04	$565.00	$335.00	$3.32
$2.50	86	$140.37	$1.63	$430.00	$289.63	$-.--

As you can see above, the $4.00 click actually returned the highest profit, even though you got fewer clicks, but it doesn't necessarily maximize your profit. That's where the ICC comes in. How did I get that number? ICC is calculated by dividing the cost of the incremental clicks by the number of incremental clicks. Let's use the $5.00 and $4.50 bids for an example. The cost of the $5.00 bid was $697.42. Subtract the cost of the next lower bid from that, $594.27. That leaves a difference of $103.15. You received 208 clicks at $5.00. Subtract the 190 clicks you received at $4.50. This leaves a difference of 18 clicks. Now divide $103.15 by 18 clicks. The result of $5.73 is your incremental cost-per-click. If you look at the the ICCs above, the $4.00 comes the closes to your value-per-click without going over. In order to <b>maximize profit</b> you'll want to increase your bid until your ICC is close, or equal, to the value-per-click without going over.  

Generally you will pay less than the bid CPC. Once we’ve determined your CPC, you can run some simulations to maximize your profit. You may actually be more profitable paying less and getting fewer bids because the incremental cost-per-click (ICC) above a certain point may be more than the CPC.

I ran some keyword simulations with a standard bid of $1.00 CPC and daily budget of $50. In the “Est Ad Position” column, the lower the number, the better the position. The best positions are above 3.

Keyword	Global Searches	Local Searches	Est Avg CPC	Est Ad Position	Est Daily Clicks	Est Daily Cost
dog toys	246,000	165,000	$0.69	2.55	69.77	$47.92
puppy toys	33,100	18,100	$0.63	2.37	1.76	$1.12
chew toys	18,100	14,800	$0.57	1.25	1.7	$0.97
squeaky toys	9,900	6,600	$0.00	0	0	0

There is a pretty in-depth video tutorial by Google's Chief Economist, Hal Valerian, on YouTube. If you'd rather, you can read the script.

The Quality Score

The quality score is calculated using a variety of factors and measures how relevant your keyword is to your ad group and to a user's search query. The higher a keyword's Quality Score, the lower its cost-per-clicks (CPCs) and the better its ad position. Which page we direct the user to in our website affects the keyword’s quality score as well. For instance if the end-user were to click on an ad specifically for dog toys and you send them to the pet store homepage, that might lower the quality score. That’s one of the reasons people use landing pages – to ensure the content is directly relevant to the AdWords.

Conclusion

Keep in mind that conversion rates and costs are variables and will change depending on current economic climates, seasons, keyword popularity, bidding rates and other financial and cultural factors. It's a good idea to go in and run simulations on a regular basis to consistently maximize your profits.

Why Nonprofits Need Social Media Strategy

When you think about it, nonprofits have been using social marketing for decades to get their message across. I’m sure you’ve heard the phrase “grass roots campaign”. What is that but a pre-social media era social marketing effort. It seems to me that the natural evolution of the social marketing strategy is the social media strategy. So why are so many nonprofits taking a “wait and see” attitude? Are they afraid of the new technology? Afraid it will get out-of-hand? Are just unaware of the opportunities?
Some of these are easy to overcome. A little education and you’re “good to go”. Some of them are a little more difficult. Without a proper strategy, for instance, it’s very easy for social media marketing to take on a life of its own. A little dabbling can be a dangerous thing if there is no direction and it can also be pointless if there’s no strategy in place to take advantage of the interlinking opportunities.

It’s Time to Get on the Band Wagon

Social media isn’t a trend. It’s a legitimate channel of marketing. If your nonprofit isn’t incorporating it into your marketing mix, you’re missing out. Do you have any idea how many Tweeters there are? 4 or 5 million….on a two-year-old platform. Facebook, which launched in 2004, has more than 150 million users, over half of whom check in every day. That’s a pretty big pool of potential to be missing out on. And I haven’t even mentioned the numbers for LinkedIn and YouTube, or the new technologies like QR Codes and mobile platforms.Social media is a routine way to keep up with things you’re interested in. I follow several organizations on Facebook, including the author Laurell K. Hamilton, the ASPCA, Pinup Girl Clothing, the History Channel, and the Denver Center for the Performing Arts, to name just a few. I love knowing my favorite author finished 7 pages, or new stuff has gone up on a site, or if a new concert has been scheduled. I’m much more involved and up-to-date and I feel…connected to these companies. It’s definitely an emotional thing.

Role Models

Spurspectives gives us two nonprofit role models to look to: the American Red Cross and the National Wildlife Federation.

The American Red Cross has dedicated professionals who blog, tweet and produce videos, creating a presence across multiple social media channels. Can you imagine the uses to which an emergency responder organization can put Twitter? And they are taking advantage of it.

The National Wildlife Federation is another nonprofit that’s pushing its marketing strategy into the new frontier. They have four blogs, a YouTube channel, and more than nine staff members who tweet behind-the-scenes information on different initiatives.These are just a few of the ways social media strategy can work for a nonprofit organization.

What’s In It For You

There are some easy ways for you to get started on your strategy.

• Add a blog to your website.
  
• Create a YouTube channel.
  
• Set up a Twitter account.
  
• Create a LinkedIn profile.

And for goodness’ sake don’t forget the metrics. All of these are quantifiable with regard to clickstreams, readers, comments, viewers, etc.Social media opens the door between you and the community you serve. It starts a dialogue. It creates interest and loyalty. You can create awareness and interaction. It’s flexible and low-cost. That’s a big key for nonprofits – low cost. You know that.
And like any effective marketing effort, social media promotes your mission and increases understanding of who you are and what your purpose is. That’s the first step in gaining support – especially if the testimonials come from friends and neighbors with a high degree of credibility.

Creating Resonance Through Leadership Style

If you remember, in the post entitled Effective Leadership and Emotional Intelligence I promised to discuss leadership styles in my next post, but then skipped them in favor of 2012 marketing trends. This is that promised post.

There are, according to Daniel Goleman, six leadership styles and all are effective - when used at the appropriate times; however the overall impact on the situation can be seen as positive, negative, or neutral, depending on the when and where of use. That is key to effective leadership - knowing when to use a particular style in order to create resonance. This means the leader is in tune with other peoples' feelings and can use that knowledge to move them in a positive emotional direction. Truly skillful leaders are able to switch swiftly between leadership styles as the situation demands. Below is a summary of the six styles with their accompanying information from Daniel Goleman's Harvard Business Review Article, "Leadership That Gets Results".

Style	The Leader's MO	Style Phrase	Drive	Style Timing	Climate Impact
Visionary	Mobilizes people toward a vision	“Come with me.”	Self-confidence, empathy, change catalyst	When changes require a new vision, or when a clear direction is needed	Most strongly positive
Affiliative	Creates harmony and builds emotional bonds	"People come first."	Empathy, building relationships, communication	To heal rifts in a team or to motivate people during stressful circumstances	Positive
Democratic	Forges consensus through participation	"What do you think?"	Collaboration, team leadership, communication	To build buy-in or consensus, or to get input from valuable employees	Positive
Coaching	Develops people for the future	"Try this."	Developing others, empathy, self-awareness	To help an employee improve performance or develop long-term strengths	Positive
Pacesetting	Sets high standards for performance	"Do as I do, now."	Conscientiousness, drive to achieve, initiative	To get quick results form a highly motivated and competent team	Negative
Commanding	Demands immediate compliance	“Do what I tell you.”	Drive to achieve, initiative, self-control	In a crisis, to kick start a turnaround, or with problem employees	Negative

The more leadership styles you are able to master, the more effective a leader you will be. It's not easy to master multiple styles. Sometimes it means unlearning old habits, especially for "old school" leaders who habitually fall back on Pacesetting and Commanding styles, which negatively affect the work environment. It takes practice and perseverance. Everyone knows it is much more difficult to unlearn an old habit than it is to put a new one in place. But, like Pavlov's dog, the more often you repeat a cause and effect scenario, the more ingrained the response will become and the more likely it is you will have a positive leadership response to a difficult situation.

2012 Marketing Trends: Strategy and Practice

Let me first say that "no, you didn't miss a post". I've been working on my budget so my mind has been very much in 2012 instead of in the present where it belongs. As a result, I got to thinking about upcoming trends instead of leadership, so you get a trends post instead. I'm still going to do the leadership post, but it will be the next time around. I hope you'll forgive me.

Ralph Oliva recently presented the much-anticipated ISBM Trends 2012 Study: Business-To-Business Marketing Trends and Best Practices. He and the ISBM research group focus on capturing how B2B marketers think and feel about the future. The “Trends” study is a US-Based study that was initiated in 1997 and is conducted every two or three years. It comes out of the noted Institute for the Study of Business Markets at Penn State University. I've included the presentation at the end of this post.

The 2012 study identifies seven trends with two dominant themes: understanding and communicating (effectively) with customers; secondly, identifying opportunities for growth. Ralph Oliva discusses these trends in great depth in his presentation, “Business to Business Marketing Trends and Best Practice”, and in many cases points to background materials and readings which can provide a better understanding of the “narrative”. The top three dominated and are listed in order of importance.

The Top Three by a Landslide

1. Value – The need to more effectively quantify and communicate value created for customers. The need is to “bring a more holistic value proposition to customers” in order to gain mind share and not just be evaluated on a per item quote with the competition. The onus is on the supplier to exhibit “enough value for customers to even make time to meet with you".
   
   ISBM Recommendations
   Value Merchants: Demonstrating and Documenting Superior Value in Business Markets (Kellogg; Kumar)
   Winning With Customers – A Playbook for B2B (Pigues; Valkyre)
   
   
2. Voice of the Customer – Developing approaches to better understand what customers really need. This is where we, as marketers, need to become a sort of mind reader. We need to understand what customers need, beyond what they can articulate. It is on us to anticipate “the shift in the way customers do business.” Their business design is changing and we need to understand and accommodate that now. One response is to become better at “uncovering fundamental needs and creating exciting offerings that are not considered ‘me too’”.
   
   ISBM Recommendation
   PDMA Toolbook (Griffin)
    
3. Growth – Finding, “sensing”, identifying and assessing new opportunities for growth. This is the new reality for B2B marketers. We are not going to return to the way things were. It’s time to focus on the future. As such, we should consider the following:
   
   • Where is the money and who’s my competition for it?
   • How do I achieve profitable growth in a difficult fiscal climate? Focus on the “new reality.”
   • What are my market expansion opportunities? Consider geography and new technology.
   • What am I doing to encourage organic growth? Encourage product and business development, and innovation and opportunity realization.
      
   ISBM Recommendations
   How to Grow When Markets Don’t (Slywotsky)
   The Upside

The Remaining Four

4. Connections – Developing closer ties with customers, suppliers, channel partnerships, and Sales and Marketing. There are several characteristics that are rising in importance in the upcoming year.
   • Partnership Skills – the ability to identify when partnerships will be beneficial and who they should be formed with.
   • Delivering Customer Value – managing partners and expanding the company’s ecosystem.
   • Compete vs. Cooperate – deciding which way to go in order to maximize available resources.
      
   ISBM Recommendations
   Build, Fix or Terminate – The Distributor’s Guide to More Profitable Supplier Relations (Narus; Forest)
   Alliance Competence (Spekman)
    
5. Emerging – Capitalize on new growth/emerging markets. This trend was positioned higher than ever before and has several new focuses.
   
   • Reassess global markets
   • Innovate globally
   • Understand cultural differences
   • Global harmonization of the offer
   • BRIC as an economic power
      
   ISBM Recommendation
   Global Tectonics: What Every Business Needs to Know (Ghadar)
    
6. Balance – Balancing short-term requirements and long-term opportunities. The focus for balance includes:
   
   • Maximize today’s value while investing for tomorrow
   • Consider the firm’s short-term actions in terms of its long-term position
   • Transition to the “new reality”
   • Rebuild marketing organizations
      
   ISBM Recommendation
   DoingBoth – How Cisco Captures Today’s Profit and Drives Tomorrow’s Growth (Sidhu)
   
   
7. Segmentation – Selecting the right set of customers for your business, and managing them effectively. Finally, there is segmentation. This remains a critical issue with emphasis placed on:
   
   • Selecting the right customer. Don’t let the economy return you to the mindset of “any customer is a good customer.”
   • Choose customers to whom differentiation matters.

The Implications

What it boils down to is there are some steps we, as marketers, can take in order to set ourselves up for success. Install the best tools for your sales team to quantify and communicate value. Learn and champion the real VOC. Look at the forest: look past the daily minutia to find growth opportunities. And get buy-in from the entire organization. Translate your markets and customers into terms everyone can understand.

Thanks again to ISBM and Ralph Oliva for the valuable information I was able to include in this blog.

 

Effective Leadership and Emotional Intelligence

Typically, I write more on what I would call hard skills: strategy, research, analytics, etc. but I've been doing a lot of thinking about leadership lately, and what makes a good leader. I've been in design industry a long time, 19 years, and most of it has included some aspect of marketing, though that didn't become my focus until about 13 years ago. I've worked with, and under, a lot of people in positions of leadership during that time, both creative types and business types. You notice that I say "people in positions of leadership" not "leaders." There is a big difference. Someone can have worked their way into a leadership position without being a good leader, and I don't necessarily see evidence that the business person is a better leader than the creative person, though that's the stereotype.

I have a good amount of experience as a leader, having led a lot of virtual, ad hoc, and traditional cross-functional teams, and I also have a lot of education in that field, as well as having created some leadership training programs. Does that experience and education make me a leader? Sure. I like to hope I'm a good leader, but is that a result of only those two elements? I don't think so. My belief is that emotional intelligence (EQ/EI) is the sine qua non of leadership and there is a direct correlation between EQ/EI and measurable business results. Daniel Goleman coined the term back in 1995 when he published his book of the same name and I've been following him ever since. His most recent publication on leadership, if you're interested, is Leadership: The Power of Emotional Intelligence. According to Goleman there are five components of emotional intelligence and therefore of effective leadership.

Components of Emotional Intelligence

Component	Definition	Characteristics
Self-Awareness	» The ability to recognize and understand your moods, emotions and drives and how they effect others	» Self-confidence » Realistic self-assessment » Self-deprecating sense of humor
Regulation	» The ability to control or redirect disruptive impulses and moods » The predilection to think before acting	» Trustworthiness and integrity » Comfort with ambiguity » Openness to change
Motivation	»A passion to work for reasons other than money or status »A predilection to energetically and persistently pursue goals	»Strong drive to achieve »Eternal optimism »Organizational commitment
Empathy	» Able to understand the emotions of other people » Able to treat people based on their emotional reactions	» Expertise in building and retaining talent » Cross-cultural sensitivity » Service to clients, both internal and external
Social Skills	» Proficient in building relationships and networks » Ability to find common ground and achieve rapport	» Effective in leading change » Persuasive » Expertise in building and leading teams

All that said, there is much more to it than this, but these are the basics of emotional intelligence. Effective leaders use this, in conjunction with one or more leadership styles (Coercive, Authoritative, Affiliative, Democratic, Pacesetting, and Coaching) to motivate and lead their teams to success. I'll go into those leadership styles in my next post, but if you don't want to wait, ChangingMinds.org has a basic description on their site.

I'd also like to add one element that is very important to me, and one that I see missing a lot: Show respect. Show respect to your supervisors, co-workers, and reports. Show it to your customers/clients. Show it whether they can hear you or not; whether they're in good standing or not. It doesn't do anyone any good to hear their boss stomping around the office berating a customer because they're late on a payment or speaking patronizingly to a direct report. In the workplace, there is always someone who is aware.

Push vs. Pull Marketing

There are a variety of marketing strategies available for you to implement but all of them fall within two categories. They are either push or pull marketing. I actually had someone say, recently, that push marketing is dead due to the surge in media marketing. I don't think they've turned their TV on recently. In order to be effective, you need to understand what they are and be able to use them both.

Push Marketing

This is what I would consider to be traditional marketing. These are the activities you undertake that put your message in front of your ideal customer. You control what the message is, where and when it appears, and how it's seen. It's a little like being the guy behind the Outer Limits intro who controls your television. Examples of push marketing include:

• TV Commercials
  31% of all households have 4 or more televisions and spend approximately 35.6 hours per week in front of the television, according to Nielsen Statistics. This is a very viable form of push marketing if you can afford it.
• Cold Calling
  This technique is particularly pertinent to service-oriented companies who may call the consumer to explain what the company does and determine they have a need for what the company is offering.
• Direct E-Mail
  This might confuse some people because e-mail marketing is permission-based. That doesn't change the fact that you are sending your message out to the customer telling them about sales, asking for testimonials or introducing new products.

Pull Marketing

Pull marketing is designed to bring the consumer to you in order to find out if you have anything to offer that is of value to them. Pull marketing incorporates your corporate/brand identity to pull people to you and turn them into fans. Examples of pull marketing include:

• Video Marketing
  Technology is advancing at an unbelievable rate and consumers are becoming used to information-on-demand. Unlike commercials, videos can be filmed in a home or office for little or no monetary outlay and can be whatever length is needed to convey the message. Once they're done, the videos can be shared on YouTube, Facebook, or the corporate website.
• Blogging
  Blogging is steadily gaining a reputation as an effective way for companies to share information about themselves, solicit consumer feedback, and keep a thumb on the pulse of their reputation. Blogging lets companies interact with their consumers and be immediately responsive in the relationship.

Social Media's Effect on Push Marketing

Now, all that said, I have seen an evolution in push marketing since the introduction of social media where push marketing is incorporating the idea that you are getting your consumer to spread your message for you. You are still creating advertising and promotional strategies, but now part of the objective is to get the consumers talking. I believe this explains what's behind the trend of producing shocking and controversial commercials, ads, etc. They create buzz and get people talking. I once had an art professor tell me that as long as the art creates a reaction, whether it's positive or negative, it's effective. I sometimes think that many marketers follow the same tenet with regard to their strategy.

Marketing Metrics and Analytics: Defining, Using, and the Results

If you spend any time in the marketing field at all, you’ll hear these words bandied about: analytics and metrics. They’re used in reference to marketing of all forms from print, to audio/visual to interactive. I’ve discovered that a lot of people in the field don’t really know the difference or how to truly use them. Make no mistake, though, the two are very different and the use is more involved then pulling open a spreadsheet or metrics tool and parroting the numbers.

Metrics vs. Analytics

It’s pretty simple when you get right down to it. Metrics are numbers and that’s all. They may indicate market share, response rates, advertising dollars spent, page visits, or clickstream. They usually show up in columns or rows in a spreadsheet type of layout. Metrics are the lifeblood of all the measuring that we do.

Analytics is pretty easy to figure out: it’s the science of analysis. Who would’ve thought? And analysis is, of course, the process of deriving complex concepts or propositions from basic components. In other words analytics is the process of making a decision or proposition based on the existing data, or metrics. Now, decisions may incorporate information from other qualitative sources such as “rule-of-thumb” or past history, but as long as metrics are involved it remains a quantitative analysis.

How to Use Analytics

As with every complex undertaking, having a good plan in place is more likely to lead to a successful endeavor. Marketing analysis is no exception. There is a series of steps I typically go through when I’m setting up an analytics model.

1. Identify the business objectives. Successful objectives are SMART: Specific, Measurable, Actionable, Realistic, and Time Specific. For example, a new business objective might be to achieve sales of $500,000 within 5 years.
2. Identify the goals for each objective. Goals are strategies you leverage to achieve the objectives. Define the steps you’re going to take and how you will take each one. An example goal for the above objective might be a first year sales goal of $50,000, accompanied by strategies for accomplishing that goal.
3. Identify the Key Performance Indicators and set parameters for them. KPIs should reflect the organizations goals, be key to their success, and be quantifiable. In our example, a KPI would be repeat customers and the parameter is that 12% of sales must come from those repeat customers.
4. Identify the segments for analysis. Are you going to analyze phone calls? Page views? Trade show booth visits? Conversions? Determine which segments need to be analyzed in order to determine failure or success of the objectives and goals.

The Benefits of Analytics

Did you know that in some cases, using analytics, B2C companies have seen a YOY market share growth of 30%? Sales increases of up to 50%? And customer attrition rates decreased by as much as 40%? Those are some pretty awesome numbers and obviously one of the best ROIs out there.

Why is that? Mostly it’s because analytics can provide you with very specific information that will help you hone or modify your marketing strategy or mix in order to take advantage of the metrics being received.

• The best referral sites for your advertising.
• Which products are more popular and which promotions are most effective.
• Track buyer habits to determine interests and target cross-selling opportunities.
• Identify clickstreams and errors to optimize your web site's layout and functionality.
• Send E-mail or direct mail blasts with targeted promotions.