The art of saying no to clients without feeling guilty

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

We all want to be liked. It is human nature to crave acceptance and feel we belong. It is possible that some disciplines such as advertising and marketing attract a more socially focused personality type than others. So when it comes to saying ‘No’ to a client request, it can be an incredibly difficult task, which leaves you feeling dejected and guilty.

But there are times when it is important for the health and well-being of a relationship and your own self esteem that you are able to master the art of saying no without causing offence or ending up wallowing in guilt and self loathing.

1. Remind them of all of the things you have said, “yes” to when you say “no”

This is ideal if you have some warning, so you can reflect back on the many times you have accommodated the client requests in the past, highlighting the times it may have been at your detriment.

Like the time they called you at the end of the day on Friday to request you have the strategy document they have been sitting on all week ready for the presentation first thing Monday morning. There is another weekend gone.

Even better if they are the type of client that negotiates and cajoles you with promises to make it up to you, as this is the perfect time to call those promises back.

2. Explain why you are unable to do it

Often clients will try and bully you into making the commitment immediately. But a great strategy is to get all of the details of what is required and by when. Even better is to ask the client to confirm the details in writing, such as an email.

Then naturally, as a true professional, you will need to check with the team to ensure it is possible to deliver depending on the scope, timeline or any number of variables that could impact the ability of the agency to deliver.

Then following a review of the client’s request with the relevant people in the agency you can go back to the client and explain in detail why you are saying ‘no’ at this time and possibly negotiate what would need to change for you to be able to say ‘yes’. Continue reading “The art of saying no to clients without feeling guilty”

Posted in agency solutions, Evalu8ing - Relationship Performance Monitoring, industry news & trends | Leave a comment

Managing Marketing – Data, big data and the transformation of market research

Managing Marketing is a podcast hosted by TrinityP3 Founder and Global CEO, Darren Woolley. Each podcast is a conversation with a thought-leader, professional or practitioner of marketing and communications on the issues, insights and opportunities in the marketing management category. Ideal for marketers, advertisers, media and commercial communications professionals.

Mark Fletcher, Director, ShopScience discusses with Darren his view on the difference between data and Big Data and the way marketers are using it to get insights into consumer behaviour and the new role of market research in validating the insights and revealing the underlying motivations.

Mark_Fletcher

You can listen to the podcast here:

Follow Managing Marketing on Soundcloud or iTunes

Transcription:

Darren:

Welcome to Managing Marketing and today I’m joined by Mark Fletcher, Director of Shop Science. Welcome, Mark.

Mark:

Thanks Darren, it’s very good to see you again.

Darren:

Well, we have, as you pointed out earlier, known each other for many years.

Mark:

It might even be more than twenty it’s sad to say.

Darren:

Well let’s not go into numbers because that just makes us feel older but I think a bit of silver in the hair is testament to the fact that we’ve been around for a while, huh?

Mark:

Indeed.

Darren:

And in that time, I think we’ve both seen a lot of changes happening in the advertising and marketing industry.

Mark:

Yeah, it’s certainly a case of either evolve or die to be part of that world now, because virtually every paradigm that I experienced over twenty years ago starting in the industry, has pretty much broken up now so yes, very few of the old rules remain except fundamental things like if people aren’t happy, they’re not going to buy things, all those type of things, but yeah, almost everything else has changed.

Darren:

Well I say to people, one of the great things is human beings don’t change.

Mark:

True.

Darren:

They evolve.

Mark:

True.

Darren:

But technology is changing and I think that’s really the big issue in our careers. I think I remember a time when you were given a computer for the first time to actually write copy and do things on rather than giving it to the copy typist. Continue reading “Managing Marketing – Data, big data and the transformation of market research”

Posted in data & direct marketing, interesting observations, Podcasts, strategic management | Leave a comment

“Putting stories to work” – storytelling for business and marketing

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

About a month ago I had the pleasure of launching a business book on Storytelling for my friend and colleague Shawn Callahan at Anecdote. Shawn has been working with storytelling and story-listening for almost two decades, firstly at the IBM Cynefin Centre and then later with his own consultancy Anecdote. He has even contributed to a number of posts on storytelling here on the TrinityP3 blog.

Storytelling for business

Shawn’s book “Putting stories to work” is a distillation of all of his experience and knowledge from working with business leaders around the globe on how to use storytelling to achieve their business objectives and is available here in hardback and paperback or as an e-book here.

But while his focus has been business leaders across the C-suite, I think there are some major insights into storytelling that are especially relevant to Marketers and particularly marketing leaders.

With the transformation, or as some call it disruption, of business due to technology innovation, the focus for marketing is moving from brand building to brand management of the customer engagement and experience.

Increasingly marketers are taking a leadership role in defining and managing this across their organisations. And what better way to influence this than with the exceptionally powerful techniques of storytelling.

An incredibly practical book

Putting Stories to Work is structured in three parts. Continue reading ““Putting stories to work” – storytelling for business and marketing”

Posted in industry news & trends, interesting observations, strategic management | Leave a comment

Is the IAB Programmatic Buying Fee Transparency Calculator a turning point?

This post is by David Angell, General Manager of the fast growing Melbourne market and National Head of Media. David has extensive commercial and media experience gained through a fifteen year career in media agencies, which he uses to help drive optimal results for TrinityP3 clients..

Ah, programmatic trading. The bane, or the joy, of a marketing/media life, depending on which way you look at it.

Programmatic transparency

The difficulties surrounding ‘Programmatic Transparency’

Unearthing true ‘transparency’ in digital programmatic trading on an individual level has, so far, been extremely difficult, for a number of reasons.

For a start, clients working with the bigger agencies often sign contract addendums regarding the use of an agency programmatic trading desk (for example, Xaxis or Cadreon) as an affiliated third party to the agency itself.

This allows the agency, contractually, to use the trading desk as it would any other third party supplier. The addendums often state that the client has no right to obtain financial disclosure from the trading desk as a third party – the old ‘we’re transparent about not being transparent’ line, employed very effectively in contract form.

There is still a degree of separation between an agency’s account team and its trading desk, which increases the sense of ‘dark art’ – when the client sees the entirety of the programmatic strategy summed up as a block cost in a one line item of a media schedule, it doesn’t really say too much about the actual strategies employed.

Nor does it say anything at all about working/non -working media spend splits, technology costs, commissions or any other form of payment coming out of the client’s dollar.

I should point out in fairness to agencies that some are now actively re-structuring to bring their trading desks closer to the core teams, as well as investing in training.

But as yet, it’s not enough to stop many clients telling me that they’re tipping money into this space without fully understanding it.

Agencies should be evaluated holistically – but programmatic assessment remains a challenge

TrinityP3 runs many Transparency, Performance and Value assessments for marketers, which provide a comprehensive picture of the operating practices, the contractual and remuneration structures and the agency output from briefing, through to strategy, trading, execution and post analysis.

These assessments do of course include us looking at practices in the digital space – but I’ll be honest, there can be clear limitations on the amount of exposure we can gain to the actual practice of the trading desk, often set by the way in which the clients have signed up to the service.

Where we are most often able to add value in the programmatic area is by highlighting challenges in contract with regard to financial transparency, data transparency and data ownership. We use WFA and other data sources to advise likely cost breakdown, but these aren’t tailored to an individual client.

We educate the clients around just how opaque this section of the industry is, and that what they’ve signed effectively allows the agency unrestricted ability to engage in practices including (but not limited to) arbitraging media inventory, generating extremely high profit margins, charging hidden fees and commissions, and owning the client’s data, using it to help other businesses in the portfolio.

Why is programmatic transparency a problem?

Continue reading “Is the IAB Programmatic Buying Fee Transparency Calculator a turning point?”

Posted in agency remuneration / compensation, agency solutions, industry news & trends, interesting observations, marketing process optimisation, media planning & buying, social media & digital marketing | Leave a comment

Before you move forward with agency remuneration, make sure you look back

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

For more than a decade we have been helping advertisers to benchmark and improve their agency remuneration arrangements. We do this using our extensive database of agency resource and remuneration benchmarks along with the TrinityP3 Scope Monitor. This can be done a number of ways:

  1. Review the current remuneration model against benchmarks
  2. Calculate the remuneration going forward using the benchmarks

Improve agency remuneration

Typically, many marketers are more interested in what they should be paying their agency, rather then looking back on what they have paid in the past. But in fact when looking at agency remuneration you should ideally look back to the recent past to understand your current situation before you move forward.

“Those who don’t know history are destined to repeat it.” 
Edmund Burke (1729-1797)

Here is why.

Looking back to learn

While the TrinityP3 industry benchmarks offer low, medium and high benchmarks for rates, resource levels and mix, the application of the right benchmarks provides insights into the current relationship being assessed.

1. The cost of the individual resources (agency personnel) is indicative of the seniority and level of expertise providing the advertiser with insights into the individuals on their account.

2. The mix of the resources by seniority and by discipline provides insights into the alignment of the resources to account requirements including volume and strategic importance.

3. The level and mix of resource by discipline against the scope of work indicates the efficiency of the relationship.

By reviewing the current remuneration we are able to determine the specific terms of the relationship. To do this we collect details on the specific outputs for the past year, the agency resources required to deliver this scope of work and the costs associated with the delivery of the scope of work plus we review any agreements or contracts in place covering the relationship.

Using this information, because it has happened, as opposed to being planned for the future, so we can confidently benchmark the current relationship against the specific market benchmarks for the category.

The only time this is unadvisable is if there have been any major recent changes in the past 12 months, such as a change in agency or a significant change in process.

To demonstrate the insights of this process let’s looks at some examples of the outputs. Continue reading “Before you move forward with agency remuneration, make sure you look back”

Posted in agency remuneration / compensation, agency solutions, marketing process optimisation, strategic management | Leave a comment

3 more brands that have successfully reinvented themselves in the digital age

This post is by Anton Buchner, a senior consultant with TrinityP3. Anton is a lateral and innovative thinker with a passion for refocusing business teams and strategies; creating visionary, data driven communication plans; and making sense of a more complex digital marketing environment.

Digital age

General Electric (GE) transforms GEekery into Uber-cool

Reinvention and transformation involves risk.

The 124 year-old company, GE, is making a leap. Over the past decade, GE’s leadership team has embarked on a financial pivot, with acquisitions, spin-offs and restructures, aiming to reposition the company as being more focused and high-value.

GE describes itself as:

“Transforming into a Digital Industrial Company with deep knowledge of physical assets and the ability to connect and optimise them using data, analytics, and software capabilities. We are speaking the language of industry and bringing together industrial engineering with sensors, software, and big data analytics to create brilliant machines and maximise efficiency. This is just the beginning of what tomorrow will look like.”

It is breaking down its divisions that have been operating as silos, and sharing innovation horizontally throughout the business, in particular with its GE Store

GE has focussed a part of its transformation strategy on creating compelling content. It has done an awesome job in turning complex, business-centric engineering solutions into simpler and more entertaining stories for everyday people.

Suck, squeeze, bang, blow

In the same way that MythBusters made science entertaining, GE is succeeding due to the personality that has been applied to its brand and content. It uses language such as “suck, squeeze, bang, blow” to describe how a jet engine works.

Their scientists have even accepted “unimpossible missions”. For example sending a snowball to ‘hell’ to push the boundaries. Take a look at the video here to see if it returns intact:

Plus you can read more about it at their global Blog, GE Reports

Or discover more innovations, viewpoints and GEekery at any of their local country adaptions: For example GE Australia

GE prides itself on having a strong social media strategy and presence, and was quick to set sail in social channels as they rose throughout the past decade – utilising Facebook, Instagram, Twitter, YouTube, Google+, Pinterest, Snapchat,Vine, Tumblr and LinkedIn.

It now has over 2.7m followers in social media

Succeeding with many ideas. Failing with some. Most importantly GE maintains its brand ethos throughout.

Recently appointed Chief Marketing Officer, Linda Boff, is taking former CMO Beth Comstock’s content marketing strategy even further. She’s focused on making the brand even more accessible to the world.

Boff talks about being a “visual brand” given that many of GE’s technology innovations are in a sense “invisible”.

GE has therefore paved the way with data visualisations that present the wealth of data that they have access to. Go for your life and delve away here

Plus here’s a video showing gas turbines turning on around the world:

Powering from Fathom on Vimeo.

Would you like to work at GE? Continue reading “3 more brands that have successfully reinvented themselves in the digital age”

Posted in interesting observations, social media & digital marketing | 1 Comment

10 Key Chemistry Questions To Ask During An Agency Search

This post is by Stephan Argent, CEO of Argedia Group and a member of the Marketing FIRST Forum, the global consulting collective co-founded by TrinityP3

During most agency searches, considerable emphasis is placed on the functional capabilities of the agencies you’re evaluating: size, scope, and capabilities, balanced against strategic and / or creative proof points – all weighed against an acceptable financial model.

Agency search chemistry questions

But just like any interview process, marketers should dig deeper to find out if the chemistry between prospective agencies and their marketing teams is strong enough to stand the test of time. An agency that looks good on paper or appears to tick all the proverbial boxes, may end up being a disaster if client facing agency resources and marketing teams don’t actually like each other.

Enter the chemistry conundrum. How can you find out if your respective teams will work well together?

While there are any number of ways to structure chemistry sessions and get at those answers – the most insightful are those that encourage a two-way dialogue between all participants. A moderator or independent observer can help steer the conversation, encourage active participation or simply provide an objective viewpoint afterwards.

Whether you’re conducting formal chemistry sessions or just asking questions throughout your search process, here are ten key chemistry questions that can help break the ice and get at whether some teams might work better than others:

1. If you’d just offered us a job why should we work for you?

Continue reading “10 Key Chemistry Questions To Ask During An Agency Search”

Posted in agency search & selection, agency solutions, marketing process optimisation | Leave a comment

How to incentivise collaborative agency behaviour with performance based remuneration

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

There has been much industry talk and discussion over the years on how to encourage agencies to work collaboratively with each other. It is a topic that we have been discussing and sharing with our clients for the past ten years. Our Evalu8ing system was developed to measure and manage collaboration between teams. And we have spoken many times on this subject around the world.

Collaborative agency behaviour

One of the key issues in creating a collaborative working environment is implementing a remuneration model that encourages collaboration rather than most models, which encourage competition. Trust is an essential ingredient in collaborative relationships and if agencies are set up to compete for a share of your marketing budget, then this undermines trust.

But let us share with you a technique, which has successfully created a collaborative environment between agencies using a performance based remuneration model that aligns all of the agencies involved to a common goal.

Step 1: Decide on the most important and valuable oblectives to the brand or business

The biggest mistake most marketers make is creating different performance metrics for each agency. It is impossible for agencies to align if they have different performance criteria. For example, if you are incentivising media agencies on media price, this could work counter to the creative agency being incentivised on innovation.

If you want collaboration between your agencies then they should share common objectives and therefore the best objectives are the ones that are of value to the brand and the business. We are talking about marketing metrics and financial objectives.

One of the best approaches we have used previously is to take the marketing director’s KPIs or the KPIs of the marketing leadership team. Eliminating the human resource metrics we were left with marketing and business metrics including Brand Health tracking, Brand Value calculations, Wholesale Volume, Market Share and Revenue. The best part here is that you are aligning the agencies to marketing and marketing to the business.

Step 2: Select the agencies that have the most influence on the delivery of those objectives

This approach is not to be applied across the whole roster, but just those agencies that have the most opportunity to contribute to achieving the objectives. This will of course depend on the strategic requirements of the marketing plan. It is the same approach we use in our strategic supplier alignment process to categorise the strategic agencies from the specialists and the generalists.

Basically it is looking at the objectives you have set and then reviewing the agencies and suppliers that are best placed to influence and implement the marketing and communications strategy. Typically this will be somewhere between one (no collaboration needed) and a maximum of five agencies (lots of collaboration needed).

Is it media driven or content centred? Is it awareness or engagement? While no one organisation or person has control over the market or even the effectiveness of the strategy, it is important to select those agencies that have the most to contribute. It is not about control, but rewarding contribution.

Step 3: Calculate the pool value based on the value of the objectives

Continue reading “How to incentivise collaborative agency behaviour with performance based remuneration”

Posted in agency remuneration / compensation, Evalu8ing - Relationship Performance Monitoring, interesting observations, marketing process optimisation, return on investment, strategic management | Leave a comment

Transforming Advertising Production for the 21st Century

This post is by Chris Sewell, Business Director at TrinityP3. Chris has a wide ranging knowledge of all areas of the advertising and procurement world and specialises in helping companies understand the environmental impact of their marketing spend. 

This is the fourth post in the series of TrinityP3 Webinars.

Advertising Production

Good afternoon everyone.  I’m going to have a chat to you about transforming production for the 21st century.  So I’ll give you a little bit of background about myself.

I’ve been doing production related things for many, many years, going way back to the 70s unfortunately. So I’ve seen a lot of transformation throughout that time, that was the pre digital age and I’ve done that in Europe, all through Asia and in Australia all down the eastern seaboard.

So this is a subject I’ve worked with for a long time, most of my career, and it’s transformed many times but hopefully today I can give you some pointers that will help you transform as well.

So what we’re going to discuss today is a few things.  So what is the definition of production and transformation of production in the 21st century; what does it look like?

I’ll give you a brief history of previous transitions that have happened over time. We’ll look at some of the current challenges that marketers have, then we’ll do an overview, a bit more of a deep dive into the various media channels; so TV use to web broadcast media which also includes video and radio, print which is what we would define as magazine, newspapers and outdoors, then we have printing which is what we are looking at now which is commercial printing and digital printing.

Then we get to the main topic which is digital and we all know that this is where things are moving to.  Then we’ll go through a few traps and then I’ll give you some tools for future proofing the way you approach production today.

What is production in the 21st century?

So firstly, what is production in the 21st century? It’s a digital world, therefore, the most important thing we have to do is to understand that these assets are very valuable and they will be re-purposed so therefore the actual storage of them is the most important thing you’ll do.

You need to store them in an organised fashion so they can be reused throughout. So that’s a keystone for production today. What it isn’t based on is the way advertising agencies and other suppliers have been charging you.  There is a lot of legacy terms that are used that come from the old days of advertising that we still see constantly when we do assessments around production costs and these are particular agency revenue centres.

But it’s not what moving forward is; we need to get rid of these, we need to understand them better and use terms that are relevant to today.

We also have to be careful as we move into the digital world, because there’s a lot of acronyms floating around, I think a lot of it is used to confuse us all and it’s about the complexity of actually doing anything.

At the end of the day, someone’s actually helping you publish, it just happens to be in the new channel called digital.  So it’s about these partners you engage with helping you define your strategy, not making it very complex by talking a strange language that we don’t like to admit we don’t always understand.

The 21st century is also about the opportunity to reach and actively engage with customers that we’ve only dreamt of in the past.  If you go back to the way that things used to be channelled before, with the old mediums we couldn’t engage with certain customers.

But with this opportunity comes the challenges of how we get relevant content in a cost effective manner and how we produce that content to actually get out to all those customers.

TrinityP3 Webinar Series: Transforming Production for the 21st Century from TrinityP3 Marketing Management Consultants

We’ve seen a seismic shift away from TV production as a one-off.  Obviously there’s still a need for it in brand, but it’s also around testing and modifying when we’re actually using the digital channel so that we can actually have lots of testing going on, in the static forms of banners or being in the video forms.

How do we actually do that in the 21st century? Well unfortunately what we’re seeing and what I’m seeing is maybe three printing companies in Australia a week going under. Commercial printing is dying. We want to try and hang onto it but it is unfortunately changing, we’ll touch on that point and help you transition away from that if you need to as well.

My view is that there’s a rebirth of the publishing model, not publishing as traditionally known as pushing out magazines, but the skills around publishing, where they help to actually generate the content edge. They got writers involved and photographers and they were pulling together articles that we were then pushing out through the old channels. We’re doing exactly the same thing.  We need to organise content and then move it out through our modern channels, those being the digital channels.

So let’s have a look at some traditionals that we have known, these are the ones that I have known, some of you aren’t old enough but I’ve seen most of these, I even saw one before this time when I first started in advertising production, they were still using letterpress.

It’s not that long ago.  We had, and I was one of the first people to transition away from letterpress into what was litho but a lot of those people were very, very scared of what this was going to do because we all get stuck in our ways and we have comfort but to move away from that was a big move in the good old days.

The ones that you’re probably most familiar with and even understand would be when TV came out, I’m sure none of you are old enough to remember when TV was first started, but there was talk about how it was going to be the death of radio because radio was where everyone got their news and entertainment.

Well that was the mainstream of mass marketing before TV.  So the presumption of what was going to happen was, that people would leave radio, therefore, as a channel, we wouldn’t have to produce things for it anymore, and use this modern equivalent which was TV.

But radio has actually reinvented itself and digital has actually allowed the podcasts, specialised radio and content is being pushed out by that channel and it’s helped marketers now target the message through that channel.

From a production point of view, nothing really has changed there.  You’re still producing good audio, a lot better production values around it now but, the same thing’s occurring.

And TV, TV itself as it was going to replace radio, is the one that’s under threat from things like Stan and Netflix as well as the digital channels and obviously anything that’s happening on the computers themselves. So it’s more under pressure than radio is.

The other one that we’ve seen is radio magazines replaced by digital. Obviously newspapers, magazines, specialist magazines where everyone got their gossip and they got their news and the massive amount of money being generated through classified advertising in the newspapers allowed them to subsidise and everything else around quality journalism which was a rare form of content.

People were hoping the transition would be at an organised pace over time but the mobile phone has changed that so that’s actually speeding up very, very quickly.  So newspapers and specialist magazines are going under all the time because people can look for the content they want as opposed to it being served up in a not very timely manner with both of those streams.

Then internet advertising which is a very interesting side. This is not necessarily relevant to production, but we have to think about what we’re going to have to deliver into these channels.

So paid, targeted, media advertising based on consumer search behaviour is what was actually happening with programmatic bookings, therefore there’s always going to be continuous growth and an increased level of targeting that will get more sophisticated with things being pushed out through Facebook, LinkedIn and all the other channels. So content was required to fill those spaces.

An interesting release of Apple’s latest phone with the ad blocker software in there is causing a few scares for the likes of Google.  I’m sure Google will come back strongly but that does change the dynamic if paid advertising can be blocked. What does that actually mean for the internet advertising? Continue reading “Transforming Advertising Production for the 21st Century”

Posted in interesting observations, marketing process optimisation, marketing procurement, print production, return on investment, social media & digital marketing, strategic management, television & electronic production | Leave a comment

Managing Marketing – The marketing challenges and opportunities of customer and data

Managing Marketing is a podcast hosted by TrinityP3 Founder and Global CEO, Darren Woolley. Each podcast is a conversation with a thought-leader, professional or practitioner of marketing and communications on the issues, insights and opportunities in the marketing management category. Ideal for marketers, advertisers, media and commercial communications professionals.

Mark Reinke, Group Executive, Customer, Data and Marketing at Suncorp Group shares with Darren the challenges for marketers in service industries in shifting the business focus to the customer and the opportunities for marketers in leading the change to a customer centric strategy.

Customers and Data

You can listen to the podcast here:

Follow Managing Marketing on Soundcloud or iTunes

Transcription:

Darren:

Welcome back to Managing Marketing and today I’m talking with Mark Reinke, Group Executive, Customer, Data and Marketing at Suncorp and actually, a long-time friend. So welcome Mark.

Mark:

Thanks Darren, good to see you.

What has changed?

Darren:

Now it says here, Customer Data and Marketing, I guess where I’d like to start this conversation is how for you, has the balance changed between customer data and marketing in say, the last 3 years?

Mark:

That’s a good question Darren. I think all marketers would say they’ve been customer-centric. I would certainly argue that my marketing career has always been centred around the customer.

But I think what’s changed and changed substantially is we have unquestionably transformed and transitioned quickly from that being an engagement with customers in the communication context to an engagement at an experience level.

Darren:

Well that’s a big difference, isn’t it? Because with traditional marketing of the 4 Ps, promotion was the main way we interacted with customers, wasn’t it?

Mark:

Well I think in some ways I could argue that the principles are still the same. So if you went back to the basics of the 4 Ps, really what you’re doing here is joining those back up and perhaps over time, they’ve become a little bit disjointed.

A lot of marketers, actually most marketers, particularly in my business which is a services business a tangible product, in reality you’re orchestrating an experience and that experience is combined of part price, part product, part the distribution experience and part the way it’s presented.

Darren:

Yep.

Mark:

I think what’s different now is people, consumers and customers, their expectations are set outside your category.

Darren:

Yes.

Empowered customers with higher expectations

Mark:

So financial services many would say has a level of expectation that’s lower than some retail categories or e-tailor categories. But I find that’s now changed. I just simply do not except as a customer, that I can get great service and beautifully tailored personalised experiences from my local coffee shop, and not get them from my banker or insurance business.

Darren:

And not only that, they’ve been empowered now through social media. Customers could always walk away, couldn’t they? If they didn’t like the service you’re giving them, they could walk away.

But now they’re empowered because they’ve almost become publishers in their own rights through social media. They’re not just telling their neighbours in complaining about poor service, they will tell everyone that listens and everyone on the internet. So that makes it a much more powerful voice from them.

Mark:

I think that’s absolutely right Darren. I think in reality, this is a globalised phenomenon. This transcends boundaries of brands. It transcends states, nations in a way. So behaviour is fairly ubiquitous now.

I mean, in our business, we have this sort of saying that customers expect more and have more power. And if we don’t start re-orientating to that world, then in reality we will cease to be global

Darren:

It’s interesting, you pointed out that expectations are set outside of your category, because there was a time when we would say, “Oh well, all banks are the same”, or “All Telcos are the same”, or whatever are the same and we’d just put up with it. Airlines are the same.

But I think you’re right. Overall, people are no longer seeing boundaries in their expectations.

New kinds of business models

Mark:

No, no not at all. And I think most businesses, certainly mine now see that tomorrow’s competitors arguably even today’s, are not coming from within your category.

So because consumers have now voted with their own behaviour, you will see categories change based on competitors that bring business models that are really effective in technology and retail and they’ll bring those to financial services and we see that today.

So they design and orchestrate those experiences as if you were a technology enabled retailer, not a bank and what’s interesting is, you don’t have to have the big infrastructure of a bank, hold the capital, take the risk, you can plug into a bank to do that.

So increasingly what I would say from my business is, we do not want to become the utility into which someone else plugs and delivers those experiences, we want to be the orchestrator of those experiences. And that’s where the customer I think takes on a new meaning beyond just the person that buys the product at the end of the day.

Darren:

Yeah, because being reduced to being simply a service provider and no longer having that customer interface completely takes you out of the market and makes you a commodity, doesn’t it? Continue reading “Managing Marketing – The marketing challenges and opportunities of customer and data”

Posted in customer relationship management, interesting observations, marketing procurement, Podcasts | Leave a comment