marketing

Curation: The Magic Word for Marketers

Nader Ashway2 Comments

Marcel Duchamp Cubist Painting 1912

I recently attended CES in Las Vegas to do some research for a client.  CES was huge and hyperactive and I hated it. My resistance was not due to the size or number or quality of exhibits, but rather the show’s inability to navigate me through any of it.

We live in a consumer-centric world, powered by immediacy and universality of choice (otherwise known as the Internet.) Today, we can shop for anything online, customize the features, and dictate how it’s delivered. Everything from clothing to cars to medicines to media.

And that’s pretty peachy. We all love choice. We all love control. But the surprising truth in many of our brand interactions is that we’re not all very good at it. Especially when the choices are overwhelming.

At CES, I longed for a GUIDE of some sort. I wished there was a handbook that outlined what I wanted to see if, for instance, I only had 2 hours to spend there. Or if I was only interested in “small, cool audio stuff.” Or if I just wanted to knock around and see celebrities. (There were many in attendance. I passed on Snooki and 50 Cent and took a front row seat at Earth, Wind & Fire. Call me old school.)

Such a guide would have still afforded me choice, but those choices would have been curated for me. And curation is the magic word for the new consumer world.

Curation is the antidote for a world of infinite choices. It relates to both content and the methods of its consumption. Those marketers who can provide guides or maps or recommendations for their consumers will have a much more fruitful relationship with them as a result. This is true in both the consumer and business-to-business galaxies. Some examples:

Museums curate exhibits. Of all the Duchamp cubist paintings, a certain museum might choose 30 of them. They would then arrange them in a distinct order, put them on certain walls, make you stand in directed spots to view them. Remember, content and the mode of consumption. The subtext here is “the museum strongly suggests you view Duchamp this way.” It’s a very specific experience. If I want some other experience, I can gladly seek it elsewhere.

Restaurants curate food experiences. The menu, by definition, is a curated presentation of food. The chef took all the ingredients available that day and culled them to eight appetizers, eight entrees and five desserts to choose from. Would going to a restaurant and just seeing a big buffet of basic ingredients (vegetables, fish, lettuces, meats, sweets) be the same? Not a chance. Here’s exactly where I DON’T want to have too much choice. (Sidebar: this was how the original “Craft” restaurant in New York started. Chef Tom Colicchio just presented the menu items, and left the pairing decisions to guests. In the June 2001 review of Craft,  New York Times Restaurant Reviewer William Grimes stated “…(the culinary arts,) function more efficiently as dictatorships.”)

Brands in virtually all categories curate personal experiences. Whether it’s how your clothes smell, or what your ringtone is, or what color the dashboard lights are in your vehicle or the editors of your favorite business magazine – we, as consumers or business customers, are seeking features and experiences that enrich our lives in some way. But for goodness sake, we want someone ELSE to tell us what those are.

We want Amazon to tell us it has “recommendations” for us. We want Google to auto-fill our search terms. We want the Gap to recommend a sweet belt to go with that sweater we just purchased. Sure, we ultimately want to make the buying choice, but what we need brands to do is present the pathways to making them.

Marketers, take note. Curate an experience for us. Stand for something. Deliver something specific, that no one else can deliver. Or deliver something that lots of other people can deliver, but do it in a way that’s unique, or cool, or fun, or hip or technologically cool or convenient. Because we all want choices…we’re just not all very good at making them.

This article first appeared on Technorati.

Give the Gift of Anything: Three Keys to Overachieving with Customers

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So, it’s the holiday season, and naturally, our thoughts turn to spending time with loved ones, eating (or over-eating in my case,) and the best part: sharing gifts. Whatever holiday you share, exchanging gifts is typically a part of it, and it adds an absolute level of joy, intrigue and excitement as we count down to the big day (or days, or geological phenomena, or whatever you celebrate.)

But what is it about gift-giving and gift-receiving that’s so special? Why do we bother with the fancy wrapping and the bows and the bags and the pomp and the circumstance?  As it turns out, there’s a marketing lesson in this process that’s worth evaluating.  I’ve found three keys that help keep my clients focused on delivering – and in some cases, overdelivering – on value.

The first key:  Surprise
Unless you’re one of those kids who makes a list and then GETS what you asked for, (and ewww if you do,) gifts, as we know them, are something typically UNEXPECTED.  At the very least, there’s a surprise element in the DNA of gifts that make them so enjoyable to receive.  (And as we get older, to give, too.)  In some cases, outside of the holiday construct, giving a gift can be an unexpected circumstance altogether.  Like when flowers arrive, or someone sends you a heartfelt greeting card or surprises you with something like a special dinner.

The second key:  Value
Another important ingredient that makes gifts so juicy is that they’re usually VALUABLE.  It’s not to say that they must be expensive, as much as having real value to the recipient.  That value could be monetary, could be sentimental, could be utilitarian, could be intellectual, could be sexy.

The third key:  Context
Finally, and this is the key, the cornerstone of a great gift experience is correlated to the level of CONTEXT on the part of the recipient.  When you give a gift that someone genuinely wants or really likes, there’s no limit to the value that can be put on it whatsoever.  Sure, unexpected and valuable gifts are nice, but give me something I really want, or have been searching for, or mentioned months ago, or is in a category I have enthusiasm for – that’s a gift I’ll always remember.

Now, let’s think like marketers.  When was the last time you created a structure where you could give a GIFT to your customer?  No, I’m not talking about a little box with a bow, but rather, when was the last time you gave something unexpected to your customer?  When was the last time you added real value to a transaction beyond what was agreed or expected?  When was the last time you took the time to find out what your customers really like, and then over-delivered it, or created a conversation around it that they could participate in or created an event based on that thing for them to attend?

This is what smart marketers do, on every level.  They first agree what the structure of the relationship is going to be:  I’m going to sell you gourmet food and wine in a fine dining atmosphere; I’m going to provide insightful television programming; I’m going to design clothes that you’ll want to wear; whatever.  But once that structure is set up, the smart marketer looks to add these three key ingredients:  surprise, value, context.  So the attentive marketer needs to watch his or her customers carefully, learn what they like, learn what they value, and then surprise them with something perfectly timed and perfectly tuned.

How can you add these three elements into your future marketing?  Whether you’re a small, local business or a multi-national corporation with thousands of employees, give your customers a gift every now and then, and you’ll find they give them right back in the form of deeper relationships, more referrals, maybe even brand loyalty.

The Law of Failure

Nader Ashway7 Comments

Illustration:  Bruce Crilly

It’s been noted in many places that Thomas Edison [caricatured above] may have failed as many as 1,000 times at inventing an electric-powered light bulb, and when asked about his string of failures, he turned the tables by saying (and I’m paraphrasing,) “I didn’t fail 1,000 times. I succeeded at inventing a light bulb, and it took 1,000 steps to arrive at it.”

A recent New York Times article asked the question “What if the Secret to Success is Failure?” when discussing education and character among school-age children. Do a search on “failure,” and you’ll find inspiring stories of heroes of history who have failed mightily on the way to great successes: Churchill, Einstein, Darwin, Pasteur, Ford and on and on.

And at the recent DMA International Conference in Boston, Biz Stone, co-founder of Twitter, turned failure on its head relative to social media, stating “if someone posts a negative comment about your product, it demonstrates a level of investment and passion about your brand.”

Okay, that’s a lot of fluffy and warm and puppies. But in business – and particularly in marketing – we’re trained otherwise. For most of us, “failure is not an option” for our next product rollout, or our next advertising plan, or our next event. However, if we embrace The Law of Failure, we might find that failing helps to reveal what success really looks like.

In almost every business, professionals fail their way into success, typically in a process of elimination continuum: try › fail › tweak › repeat until try ultimately leads to success. At which point, you test the snot out of that success to ensure repeatability and reliability. This is true in engineering; in medicine; in sports; in fashion; in entertainment; in technology; in a zillion other categories.

In marketing and advertising, (direct, media, creative,) we call it “testing.” But testing is simply an accepted euphemism for “financing failure to yield better strategies.” Why else would almost every big campaign be run through focus groups first?  Why test your spots on samples of your target demographic? It’s not so much that you can see what WORKS, but rather that you can reveal what DOESN’T.

My theory on why it is so vehemently avoided in the marketing/advertising arena is simply because of the money flow. When doing medical testing, for instance, the medical company has an R&D budget to cobble away in a lab for sometimes years at a time. In engineering or technology, all the sunk costs are stacked upfront – sometimes financed by venture capitalists – and millions or tens or hundreds of millions of dollars might be spent to arrive at a new design/product/solution that then gets recouped upon selling/distributing/launching.

But in advertising, the money flow is different. The typical relationship is an outsourcing model (company x hires agency y to develop the marketing program) that puts the pressure on the marketer to justify that spend and that agency choice. It’s our money, so you better spend it wisely. No marketer I’ve ever met wants to hear in the pitch “yeah, we’re gonna spend a percentage of the budget on failing.”

But that’s essentially what’s happening. Sure we do research, we do cluster analyses, we create predictive models. My colleague David Adelman at OCD Media is a media planner who creates predictive models in order to yield what he calls the most “testable propositions.”

The only problem (in advertising and marketing) is that those propositions are tested out in the marketplace, and failure is seen as a scarlet letter on the breast of the marketer (and in many high-profile cases, the agency, too.)

But I propose that failure is not a sad end to high hopes, but rather an intelligent investment in future successes.

When you fail at strategy X, you now have saved an innumerable amount of money because you KNOW that strategy X won’t work (under the current conditions.) You can instead pursue strategies Y and Z. And if they fail, you save proportional amounts, and so on. KNOWING is powerful.  Failure leads to knowing, whereas success is sometimes an intoxicating mix of planned well, guessed right, timed it right, chose a good director, etc.

This might not fly at your company if you’re a slave to the quarterly conference call with the board and have to explain that you’re failing. But if you’re a small to midsize marketer – you’ll never spend money any more wisely than by failing and KNOWING what to avoid in the future.

Point/Counterpoint: Who should set the marketing budget – the client or the agency?

Nader Ashway9 Comments

Nader Ashway marketingthingy blog post image - who sets the marketing budget

Okay, so I’m borrowing from Saturday Night Live’s classic sub-skit featuring Jane Curtin and Dan Aykroyd.  But it’s the only way I think we can easily platform this complex topic for debate.  For you legal eagles out there, copyrights appear at the end of this post.

Who should set the marketing budget – the agency or the marketer?  This seems to be the question that plagues marketing relationships – especially between small and midsize marketers and smaller agencies.  On the broader scale, it’s pretty easy…larger marketers (and/or public companies) tend to stipulate their budgets way out front, and use previous years’ spend as a barometer, which can be tracked on resources like Adviews, a subscription-based tool from Nielsen. Generally, most of that spend is earmarked for media anyway.

But with smaller/midsize companies and smaller/midsize agencies, it seems that the budget dance is a tricky little two-step, and no one seems to know who should lead.  Let’s explore both scenarios and see which one makes the most sense for you.  Your opinions are invited!

Jane:  The agency should set the budget.
Buying marketing services is similar to buying any other services from any other vendor.  That being the case, you want to get the most bang for the buck.  So you invite a couple of agencies in, set up the goals for the upcoming year (or the project or initiative) and ask them to come back with a proposal that sets out a budget, a timeline, and what they expect they’ll achieve.

The agencies come back with proposals about what they think the marketer should be doing (building a microsite, running an outdoor campaign, running a sweepstakes, maybe,) and what they want to charge you for that. So the benefit is that you – the marketer –  do get to see a variety of thoughtful approaches to your marketing, as each agency will make different types of suggestions and usually prepare very fancy presentation materials!

As far as costs, an agency will typically include management fees, creative fees and expenses for out-of-pocket costs, like media, some third party add-ons, printing, postage, web development, etc.

This is the best way to do it.  I’m not telling what the agency to spend – they can tell me what they want, and I’ll choose from there. Agencies know what things cost, they know what they need to make to be profitable, and they know what I want.  Why should I tell them I have $100,000 to spend this quarter if they can deliver it at $75,000?  I have to be responsible with my budget.

Dan:  The marketer should set the budget.
Jane, you ignorant slut.  Everyone knows that if you ask an agency to set the budget, they’ll come back with a number you can’t afford, that includes every possible marketing incarnation from social to mobile to telepathic or whatever.

Or worse, they’ll suggest an over-inflated, over-reaching grandiose plan that includes tons of media that they can commission at double digits, and tons of dopey ideas like flash mobs and street teams and who knows what else.  [Not that these are bad ideas, but when there are no boundaries, some agencies like to frolic in the fields on your dime.]

If marketers want to get an equal assessment of how an agency can perform, the best way to do that is to quantify specific parameters:

using X dollars, and in Y time frame, what do you suggest to help us meet objective Z? 

Using this simple formula, or expanding it to a more detailed RFP, you will get presentations from agencies that are focused, that demonstrate their core capabilities and that usually have an ROI component attached.  But without stipulating dollars, you’ll never quite be comparing the presentations on an equal footing.

Marketers, YOU know what your goals are.
Not the agency.
You know what your operational expenses are to sell a product or service.
Not the agency.
You know what your board of directors or shareholders want to accomplish.
Not the agency.
You know what you have to spend to get there.
So why ask the agency to tell you?

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So.  What do YOU think?  Should the agency tell you what to spend, or should you ask an agency what they’ll do with your budget? 

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“Point/Counterpoint” is intellectual property:  a sub-skit of “Weekend Update.” “Weekend Update” is part of a comedy program called “Saturday Night Live,” created by Lorne Michaels; originally written by Chevy Chase and Herb Sargent. © 1975 Broadway Video/SNL Studios.

The Four Cornerstones of Driving Traffic

Nader Ashway15 Comments

I recently held a garage sale (how suburban of me, eh?) and, while it was a success, it could have been much better. Definition:  I didn’t sell everything I would have liked to sell.

The issue, I have surmised, was not a question of our inventory or our location or our quality level – it was simply a matter of driving the appropriate traffic. [Note:  a follow-up report from the garage sale indicated that we converted sales at approximately a 25% ratio:  for every four people that came by, one made a purchase.  Not bad.]

While I covered all the requisite bases, there was a lot more I could have done.  It reminded me that small and midsize brands face the same traffic issues every day.  Whether you’re a website, a local retail shop, a restaurant or even a midsize b-to-b service provider, driving and sustaining traffic is central to your survival.

Irrespective of the media you choose, or the vertical you’re in, or the market(s) in which you operate, here are four critical cornerstones to understanding and driving traffic that I’ve branded as the “TMX2” approach.  These are in no certain order, and in many respects, have to be considered simultaneously.

The first cornerstone:  Targeting
Driving traffic begins with a clear understanding of the prospects you WANT.  If you’re working with a media company who’s doing planning for you, you can probably get to a very decisive target.  But if you’re not (maybe you’re small, maybe you’re not sure,) you can ask yourself important questions:  who is the “ideal” customer?  What is the ideal “deal” for that customer?  How can I provide that structure?

Two important targeting sub-themes here:  think virally and think in segments.
First, in the age of social media, ask yourself another targeting question:  Who will be likely to “spread” my message post-purchase?  Second, don’t be afraid to segment.  You can’t be all things to all people, but you can be one valuable thing to one segment, another valuable thing to another segment and so on.  For more information on segmentation, check out the VALS Framework, pioneered by SRI.

The second cornerstone:  Timing
Two facets of timing are essential.  First, give your offer or your brand or your new product launch ample time to sink in and make the requisite impressions.  So often, marketers have great ideas and fantastic solutions to offer, but we bail when we don’t think it’s happening quite quickly enough.  We already know that the American consumer (or business owner) is inundated with zillions of marketing messages every day.  Sure, you have to cut through the clutter with good messaging and solid creative, but you also have to allow for the message to seep in…there’s a reason “frequency” is a cornerstone of every media plan.

The second facet of timing is more delicate – you have to offer your consumer what they’re looking for, at a price he or she is willing to pay, at the right moment.  Not quarter.  Not month.  MOMENT.  This is why the term “real-time” is being bandied about so often in marketing seminars and business conferences around the world.  See articles on real-time marketing on Mashable.

The third cornerstone:  Message
While it’s impossible to cover everything about messaging in an overview, be clear about this:  you can target the right customer, deliver your communications over the right medium, time it perfectly and still not influence or stimulate demand if your message doesn’t resonate with your customer.  So how do you make that happen?

It’s not simple, but make sure you cover at least the following:  Claim the highest possible emotional benefits that speak to your audience (or segment.) Add rational support for choosing your product or service.  Be absolutely relevant.  And don’t be afraid to be a little unexpected – a little cooky.  As long as those other aspects are covered, cooky can work and usually does because it’s more memorable and more entertaining and more differentiating.

The fourth cornerstone:  Mission
Here’s a cornerstone of driving traffic that can easily get overlooked.  Very often, we achieve results when we undertake a marketing effort.  But sometimes, the early returns can influence our perceptions about what we’re trying to achieve.  If things are going great in the first month of a new campaign, everybody starts to project HUGE numbers for the program, and forgets that you had an objective to only move the needle by 10%.  If things start out slow, we may assume that “this is never going to work,” and we forget that we only want to move the needle by 10%, so we crush the program before it has time to sink in.

The best way to avoid abandoning the mission is to document it.  Write it down where EVERYONE involved can see it.   That’s right.  Everyone.  The client.  The agency.  The vendors.  The investors.  Everyone.  “WE WANT TO SELL 22 MILLION WIDGETS AT 19¢ IN THE NEXT YEAR.”  Or “WE WANT TO INCREASE WEB TRAFFIC TO 100,000 UNIQUES PER MONTH IN THE NEXT TWO QUARTERS.”  Whatever it is, keep it sacred and don’t abandon it.  You’ll find that it absolutely aligns every stakeholder and, if you build on the other cornerstones, you’re likely to be pleasantly surprised at the traffic jam just up ahead.

Article first published as The Four Cornerstones of Driving Traffic on Technorati.