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4 Marketing Paradigms Brands Can NOT Ignore

by Bernie Borges on Sep 21, 2012

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Four game changing paradigms all marketers MUST embrace to compete and win. Ignore at your own peril.

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Bernie Borges, Speaker, Author, CEO, Fun Guy at Find and Convert @lwoodardfb thanks for your kudos Laura. Always appreciated! 8 months ago
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Laura Woodard at GrassRoots Marketing Group, Inc. Great content as always, Bernie! Thanks 8 months ago
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Let’s look at the five characteristics of a social business. In full disclosure these are my opinion. You may or may not find these characteristics in someone else’s definition of social business. I’ve been a practitioner of social business since 2006 both as a user and as a digital marketing agency and a speaker and trainer, not to mention author of one book and a top 100 digital marketing blog, though it wasn’t called social business until more recently. So, I am confident that my perspective is grounded in sound reasoning.
Let’s look at the five characteristics of a social business. In full disclosure these are my opinion. You may or may not find these characteristics in someone else’s definition of social business. I’ve been a practitioner of social business since 2006 both as a user and as a digital marketing agency and a speaker and trainer, not to mention author of one book and a top 100 digital marketing blog, though it wasn’t called social business until more recently. So, I am confident that my perspective is grounded in sound reasoning.
What began as “social media” has evolved. The journey for businesses around the world is not unlike the phases we all experience from infant to mature adulthood. I believe we are approximately 7 years into this journey and I would characterize our current state in social business as early adulthood. My reason is that we’re finally talking about what it means to be a social business. This was not a conversation we were having 2 years ago.
Most business around the world have begun to use social media technology in one form or another. It’s really not a matter of whether a business is “on social media” the question is “does social drive business results.” This is why we need to be talking about social business, not social media.
Two years ago, a study was published that illustrates the 3 stages organizations go through in the adoption of “social media.” They are the launch stage, the management stage and the optimization stage. http://mashable.com/2011/03/03/social-media-roi-cycle/
At the time of this study about 2 years ago, approximately 50% of organizations were considered in the launch stage. This is a very tactical stage characterized mostly by the marketing department opening up the requisite social media accounts on sites like Facebook, Twiiter and YouTube and sticking those social media icons on the website. The C suite says “okay, we’re using social media, whatever that means.”
The management phase occurred about one year into being “on social media.” The organization began to focus more on engagement because they recognized that’s what people want to do on social media, ENGAGE. Businesses began to wake up to the fact that social media is not a platform to push and promote your products, but rather a place to have real, authentic, human engagement. In other words to be SOCIAL. And, along the way, when natural conversations occur about your company or products, that’s good. But, blatant promotion just doesn’t fly because that’s not social.
About two years into this journey many organizations began to really come to understand the value of being social through relevant content and more authentic engagement and began to piece together either anecdotal evidence, or (gasp) quantifiable evidence that being social on the web is actually good for business. Yes, it is good for business. And, that is why today we are talking about social business.
One of the most progressive companies in the area of social business is IBM. In full disclosure, IBM has products and services that help organizations become a social business and measure results. That said, IBM is walking the walk quite nicely. Recently, IBM released their 2012 Global CEO Study in which they interviewed more than 1700 CEOs in 64 countries across 18 industries. Their big three take aways from the report are: 1) empower employees through social technology and a culture of being social, 2) leverage partnerships, 3) engage customers as individuals. In other words, don’t think of your business as B2B or B2C, but rather H2H (human to human). Businesses are made up of people and people are social. And, social technology enables everyone to connect and engage in ways that weren’t possible in years past.
I encourage you to download this report. It’s not a gated report (no form required). Two of my favorite quotes from CEO participants really summarize it nicely. Social technologies allow feedback to occur 24/7365 and we need to be able to listen and respond. And, the organization is made up of collective intellectual capital that need to be mobilized for innovation.
So, the new stage 3 is really social business. In the simplest terms it is about business. It doesn’t matter if you’re a non profit or a government agency or commercial entity, it’s about the definition of business in your context.
Anything meaningful in business always has to have the full support of the top of the food chain in the organization. In a social business, the C suite recognizes that employees are social and that they use social technology, and that restricting their use in the business is like restricting them from talking on the phone. The C suite also understands the role of relevant content as a means to engage with customers, and technology or systems to facilitate usage and measurement of business value. A social business is both content rich and users of social technology to implement, track and measure results.
A social business understands that it requires technology investment to be social not unlike the need for ERP or CRM systems. In April 2012 Forrester Research published a report on social business. Their research shows that 50% of those organizations surveyed either had already invested in social technology or had planned to invest in 2012.
The Forrester Research report indicates that 60% of the executives surveyed indicated their #1 goal from social technology is better decision making by being closer to the customer.
The landscape of social technology providers is a fast moving one. In 2012 alone we’ve seen several moves from well known brands. Oracle and Salesforce both made social technology acquisitions, as did Microsoft in their acquisition of Yammer. And, of course as I mentioned earlier, IBM has a big stake in social business with products and services ($20B). While this is just a sampling of some of the technology providers in social business, clearly the trend is obvious. Organizations need social technology and these providers are serious about earning your business to help you be a social business.
IBM has invested more than $20 billion in recent years acquiring technology companies and their talent to position themselves as the market leader in social business solutions. Visit them online at http://www.ibm.com/social-business.Allows you to synthesize multiple forms of data. Scalability and processing power that far surpasses human capacity. Tackle unstructured data (big data).
In my opinion, one of the most compelling characteristics of a social business is when the organization recognizes that marketing is not a department. The role of the marketing department is to provide leadership to the rest of the organization. The marketing executive should be a part of the leadership team. The marketing plan must be clearly aligned with the business’ strategic objective. The role of marketing certainly includes the launch of campaigns and tactics designed to build brand awareness and produce leads. And, it also includes communicating the vision to the rest of the organization and spelling out exactly how the people in each functional department or division plays a role in the company’s overall marketing efforts.
HubSpot is a marketing automation company. Recognized by Inc., Forbes, Fortune and others for their rapid growth, they are also recognized for the two co founders walking the walk in social business. HubSpot is in the “inbound marketing” business. So, it’s no surprise, and worth noting that the CEO and CTO of a fast growing inbound marketing software company both blog and tweet in a very down to earth, human way. But, even more significant is the fact they empower their 400 employees to tweet, blog and otherwise share thoughts and links to content about relevant inbound marketing stuff. They get it. Of course, they should get it. They are a great example to follow.
A social business is very strong in content marketing. Study after study proves that we humans don’t trust advertising. I’ve seen stats as high as 76% of us don’t believe advertising messages. In the digital age, the most effective way to reach and engage people is through relevant content. The people we can reach through good content runs the gamut across your entire value chain from employees, customers and all strategic stakeholders. Delivering content that addresses the needs and wants of each persona is the name of the game. And, a social business understands that and does exactly that.
So, the new stage 3 is really social business. In the simplest terms it is about business. It doesn’t matter if you’re a non profit or a government agency or commercial entity, it’s about the definition of business in your context.
So, the new stage 3 is really social business. In the simplest terms it is about business. It doesn’t matter if you’re a non profit or a government agency or commercial entity, it’s about the definition of business in your context.
A social business embraces employees as brand ambassadors. Some of your employees have valuable subject matter expertise, and some of them have the capability of building their reputation around that expertise in a way that is valuable to your brand. This phenomenon is made possible through a content mindset which is greatly enabled through our digital channels such as blogs and social networks. While not all employees are qualified to be dual branded, those that do can have a “halo effect” on your brand. When these employees produce valuable content, share it and engage with your market, their personal brand benefits and so does yours. A social business does NOT fret over the personal brand equity of these employees. Rather, a social business embraces it for the halo effect. A social business works in alignment with these employees.
Indium Corp is a NY based manufacturer of industrial solder paste. They were an early adopter of blogging. It didn’t happen overnight, but today more than 70 engineers write blog articles on obscure, long tail technical topics that would glaze over most of our eyes. Their blog content is well received by their audience resulting in a healthy steady supply of qualified sales leads. A paradigm for how to behave. Marketing is influenced by every other department. But, marketing is the face. Brand awareness. Positioning.
Kinaxis has a vibrant blog with more than a dozen contributors from every function in the business, all sharing their thoughts and expertise on supply chain industry topics.
Kinaxis also has a private community with more than 5000 members. This is a subscription based community of customers, partners and employees discussing topics that interest them in the context of supply chain management.
Push vs. pull. Elaborate on meaning of experience.
Finland’s flagship airline, Finnair and the Helsinki airport set out to collaborate on a social outreach to find ways to make air travel more enjoyable. They were launching a new concept called Quality Hunters. They would choose 7 of the best ideas, and give them a 7 week journey around the world in search of air travel best practices. They used social media to invite people to make any suggestion they want. They held live online chats which sometimes lasted all day. The Quality Hunters social media team listened and engaged with the community, which was growing rapidly. People really responded well to this online community. One of the easiest ideas to implement from the suggestions was a book swap lounge. The community was invited to submit design ideas. The connection made between the community and the airline is a human to human connection. Ana Silva O’Reilly, whose blog post nicely summarizes the whole journey genuinely appreciates the opportunity to make new online friends and she even says she made business connections. The community also helped her spread the word on her new travel blog. This is an example of a social business in action through authentic engagement, listening and acting on the input of the community.
While the Starbucks marketing team may be responsible for their mobile strategy and managing their Instagram account, what they understand is that their most powerful asset is their loyal customers. Through their mobile app, they generate significant revenue. Through Instagram, a more recent endeavor, they allow anyone to follow them. 93,000 possible combinations of a drink. “a sliver of alliance in the moment of a transaction.” Total control over your coffee drink. All about customer intimacy. Make it easy to share through social….
When a brand delivers utility to the consumer through social technology, a strong relationship can be built. Mobile technology is one of the best ways to do that. Delta airlines allows me to manage my travel plans from my smartphone. Charmin (yes, the makers of toilet paper) allows me to find available rest rooms wherever I am. The user community rates each bathroom a “sit or a squat” based on how clean it is. And, of course Starbucks allows me to find store locations as well add money to my card. These examples illustrate how a social business connects with their consumer in ways that really matter to the consumer, not by selling but rather by offering them value on their mobile device.
When a brand delivers utility to the consumer through social technology, a strong relationship can be built. Mobile technology is one of the best ways to do that. Delta airlines allows me to manage my travel plans from my smartphone. Charmin (yes, the makers of toilet paper) allows me to find available rest rooms wherever I am. The user community rates each bathroom a “sit or a squat” based on how clean it is. And, of course Starbucks allows me to find store locations as well add money to my card. These examples illustrate how a social business connects with their consumer in ways that really matter to the consumer, not by selling but rather by offering them value on their mobile device. Henry Fort ModelT.
When a brand delivers utility to the consumer through social technology, a strong relationship can be built. Mobile technology is one of the best ways to do that. Delta airlines allows me to manage my travel plans from my smartphone. Charmin (yes, the makers of toilet paper) allows me to find available rest rooms wherever I am. The user community rates each bathroom a “sit or a squat” based on how clean it is. And, of course Starbucks allows me to find store locations as well add money to my card. These examples illustrate how a social business connects with their consumer in ways that really matter to the consumer, not by selling but rather by offering them value on their mobile device.
When a brand delivers utility to the consumer through social technology, a strong relationship can be built. Mobile technology is one of the best ways to do that. Delta airlines allows me to manage my travel plans from my smartphone. Charmin (yes, the makers of toilet paper) allows me to find available rest rooms wherever I am. The user community rates each bathroom a “sit or a squat” based on how clean it is. And, of course Starbucks allows me to find store locations as well add money to my card. These examples illustrate how a social business connects with their consumer in ways that really matter to the consumer, not by selling but rather by offering them value on their mobile device.
Create an e-book that offers The Ultimate Guide to ………..
Create your own internet TV show. You don’t need thousands of dollars in equipment. Use a camcorder, internet streaming software, a conference room at your office and use employees to host your show. Make it informative and FUN!
Kinaxis is a supply chain management software company located in western Canada. Kinaxis has many social channels where they enable employees, customers and partners to participate through relevant content. One of their content channels is even a comedy video channel.
So, the new stage 3 is really social business. In the simplest terms it is about business. It doesn’t matter if you’re a non profit or a government agency or commercial entity, it’s about the definition of business in your context.
While the creative era gave rise to some memorable ad campaigns, they became less effective as marketers turned to direct marketing using database marketing tactics with a “1%” mentality. Today, the consumer has revolted. The 99% we reach with an irrelevant message gets angry and goes online to tell the world about how a brand just messaged something totally irrelevant. Today we live in the relevance era. Consumers expect brands to know more about them, and message them relevantly. It’s relevance or die!
At the end of this presentation if you take away one principle it should be this: DDM is all about relevance. As consumers, the volume of messages we get each day continues to grow each year. As marketers, if we deliver highly relevant messages, we can enjoy positive results. If we fail at delivering relevant messages, the consequences are severe.
Unfortunately, most brands are not yet getting this right. And, as a result brand defection is high, due mostly to delivery of irrelevant messaging. When a 40 year old woman in San Francisco is sent the exact same message as a 40 year old woman on Des Moine, Iowa, the brand mistakenly assumes the relevance is the same. And, it’s not.
The truth is the customer is “mad as hell and they’re not going to take it anymore!” And, that is because the customer is in control. All we have to do is tweet our dissatisfaction, or post it on a brand’s Facebook page, or post it on a forum and the brand’s customers see the complaints. We live in an open communication, digital world where the customer is in control.
Let’s look at the forces of DDM. The first one is economics. Consumers want the best bang for their dollar. They are less loyal to brands who don’t deliver the best bang. And, the C suite is scrutinizing every dollar of marketing spent.
The next one is intensifying competition. In the digital age it’s easier for competitors to make inroads in almost any industry. Oracle saw Salesforce go from a scrappy startup to a serious threat in CRM software. Google saw Facebook encroach on their turf with the world’s most popular social network despite three attempts by Google to compete. New marketing paradigms allow competitors to reach and engage consumers like never before. And, the consumer that is wowed (in a relevant way of course) develops brand loyalty, provided the wow is backed up with a quality product.
The third force is advancing technology. The market for business analytics, marketing automation and optimization is growing very rapidly. IBM alone has invested $11B in recent years in acquisitions to be well positioned to capitalize on a $200+ billion market. As technology continues to become available to marketers to reach their customers in very relevant ways, businesses are allocating budget for it as they increasingly understand the need for such technology to use DDM to micro target customers with relevant messaging. Look on IBM.com
The way for marketers to increase their chance of winning and keeping customers in the digital age is through data driven marketing. And, it starts with the collection of data from customers.
DDM marketing produces the results all brands want, more revenue, customer retention and loyalty, and ROI on marketing expenditure. If more organizations practiced DDM, the average tenure of a chief marketing executive would be more than 22 months. In fairness to the CMO though, it takes a village. IT must cooperate in allocation of resources to license, implement and support DDM technology tools. DDM is inherently dependent on technology tools, supported by an analytical mindset.
Again, this all amounts to becoming a marketer of relevance. Reaching and engaging customer segments with messaging that is meaningful and of interest is the winning formula.
Next, let’s look at how Tampa Int’l Airport uses DDM to attract new airlines.TPA’s objective about a year ago was to attract more airlines with direct routes to major cities. The economic impact of direct routes is substantial - $154 million and 1200 jobs.
After pouring through a lot of data, TPA official learned that 35% of guests in Pinellas county rented cars in Orlando. That meant that tourists were flying into Orlando with an interest in visiting Florida beaches. With a powerful buying rate in Tampa Bay, TPA officials decided to pitch their airport to Edelweiss, a popular Swiss airline with direct routes between Orlando and Zurich, Switzerland.
The pitch to Edelweiss was entirely based on data. TPA officials showed them that more 30 Tampa Bay companies do business in Switzerland and that 24 Swiss companies have subsidiaries in Tampa Bay, and how many European travelers fly to Orlando end up in Tamp Bay to visit the beaches.
The end results was that Edelweiss Airlines cancelled their Orlando to Zurich flight and instead launched their Tampa to Zurich flight. In the past year. DDM has resulted in TPA landing flights to Cuba, Switzerland and UK.
Another characteristic of a social business is having a data driven mindset. The amount of data that can be gleaned from social technologies is so huge that a new buzzword has emerged – BIG DATA. Measuring the impact of big data on the bottom line is complex, but it’s very doable with a combination of the data driven mindset and the right tools to micro target effectively with relevant messages and to measure social engagement outcomes.
In today’s hyper competitive, digital world, organizations that use data driven marketing give themselves a fighting chance. No brand is secure just on brand equity alone. Just look at Kodak, Pan Am and Research in Motion (Blackberry). Executives who embrace DDM give themselves the possibility of being relevant to their customers. And, at the end of the day, that is what your customers want most from you.
Each business is unique. In order to consider what’s next for you ask yourself these questions. Chances are you have competition, your employees are connected in social networks and you already use some form of social technology whether it’s free or fee based. Remember that being a social business is a journey. A social business mindset is not an option. A strategic plan is not an option. Data driven social technology is not an option. I encourage you to take the action that is appropriate for you in your situation. Lack of action can be very risky.

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4 Marketing Paradigms Brands Can NOT Ignore Presentation Transcript

4 Marketing Trends You Can Not Ignore September 21, 2012Bernie Borges, CEO Find and Convert
4 Marketing Trends• Social Business• Employee Branding• Delivering Experiences• Data Driven Marketing
4 Marketing Paradigms • Social Business • Employee Branding • Delivering Experiences • Data Driven Marketing
Social Business is a Journey
The Train Has Left The Station
3 Stages of the Social Media ROI Cycle http://www.slideshare.net/colleencar/increasing-social-media-roi-using-gladwells-tipping-point- framework-4539106
Stage 1: Launch 50% of businesses http://www.slideshare.net/colleencar/increasing-social-media-roi-using-gladwells-tipping-point- framework-4539106
Stage 2: Management 40% of businesses http://www.slideshare.net/colleencar/increasing-social-media-roi-using-gladwells-tipping-point- framework-4539106
Stage 3: Optimization 10% of businesses http://www.slideshare.net/colleencar/increasing-social-media-roi-using-gladwells-tipping-point- framework-4539106
IBM 2012 Global CEO Studyhttp://public.dhe.ibm.com/common/ssi/ecm/en/gbe03486usen/GBE03486USEN.PDF
IBM 2012 Global CEO Studyhttp://public.dhe.ibm.com/common/ssi/ecm/en/gbe03486usen/GBE03486USEN.PDF
The New Stage 3SOCIAL BUSINESS
C Suite Gets Social Business
Investment in Social Technologyhttp://www.vmware.com/files/pdf/socialcast/Social-Business-Delivering-Critical-Business-Value.pdf
Investment in Social Technologyhttp://www.vmware.com/files/pdf/socialcast/Social-Business-Delivering-Critical-Business-Value.pdf
Social Business Technology
IBM Leading The Wayhttp://www.ibm.com/social-business
Marketing is Not a Department
The C Suite Gets Social Business
A Social Business Leverages Content • Employees • Customers • Influencers • Partners • Stakeholders
Advertising creates awareness… Content creates demand…
EMPLOYEE BRANDING
Employee Branding
Marketing is Not a Department • 70+ engineer bloggers • About technical topics • Measurable lead flow
Employee Branding at Kinaxis
Employee Branding at Kinaxis
THE EXPERIENCE
Harnessing Customer Feedback & Taking Action On It “It was nice to be recognized by the airline but being part of this company’s social network meant more to me than they would ever know. You see, by participating, I was constantly encouraged and inspired to start my own travel blog and create my online alter- ego @mrsoaroundworld. I made some valuable business connections and authentic friendships. The people in the Quality Hunters community were the first ones to read my new blog and spread the word. It rapidly became a very popular site for tales of luxury travel.” Ana Silva O’Reily
The Starbucks Experience • 2010 mobile marketer/year • 26 million mobile transactions • $110 million card reloads
The Mobile Experience
The Mobile Experience
The Mobile Experience
WillItBlend
The E-Book Experience
The Show Experience
B2B Experience Options from Kinaxis
DATA DRIVEN
Three Eras of Modern Marketing• Creative era • 1960’s and 70’s • Advertising centric • e.g., The Marlboro Man, Where’s the Beef?• Direct era • Database marketing direct to the consumer • 1% conversion rates = profitability•Relevance era • A relevant message to each customer segment in the relevant channel
It’s All About Relevance• 1978 consumers 2,000 ad messages/day• 2007 consumers 5,000 ad messages/day• 2010 consumers 16,000 ad messages/day 95% open rates possible 5% with highly open rate typical relevant with irrelevant messaging messaging
The Cost of Irrelevant Messaging• 41% of consumers say theywould consider ending a brandrelationship owing to irrelevantpromotions• An additional 22% say theywould defect from the brandrelationship due to irrelevance• 58% of brand’s marketingcontent is not relevant topotential buyers, reducingbrands’ chances of a sale by45%
The customer is in control and knows it!
Forces Behind DDM• Economics • Consumers affected by down economy scrutinize purchases • Customer loyalty is more important to brands than ever before • Marketing budgets are under heavy scrutiny in C suite
Forces Behind DDM• Intensifying competition • Lower barriers of competitive entry in digital age • Competitors experimenting with social media, email, content, behavior al marketing campaigns •The WOW factor…Consumers expect to be wowed…
Forces Behind DDM• Advancing technology • Business analytics • Marketing automation • Marketing optimization
The Power of Data Driven MarketingThe data (precision) marketing framework relies heavily onseveral key factors, starting with the collection andanalysis of data. Analyze and Model Determine Deploy Objective Measure
DDM Business Results• Increased revenue• Customer retention•ROI in marketing expenditure
It’s All About the CustomerRelevance will close the chasmbetween creative and directmarketing, leveraging customerinsights to produce truly valuablecontent and communication thatengages the buyer through highlyrelevant customer touch points.
Moneyball Marketing at Tampa Int’l Airport Objective: Attract more direct routes to major cities 1 new non-stop air route to major city has $154 M economic impact, 1200 jobs.
Moneyball Marketing at Tamp Int’l Airport Objective: Attract more direct routes to major cities 35% of Pinellas hotel guests rented cars in Orlando Tampa, St. Pete, Sarasota effective buying rate of $96B TPA is within 1 hour drive for 3.5 million people
Moneyball Marketing at Tamp Int’l Airport Objective: Attract more direct routes to major cities More than 30 Tampa Bay companies do business with Switzerland. 24 Swiss companies like Nestle SA, Credit Suisse Group AG and Zurich Financial Services that have subsidiaries in Tampa Bay. Many European travelers fly to Orlando but end up in Tampa Bay: 35 percent of Pinellas beach-goers rented cars in Orlando.
Moneyball Marketing at Tamp Int’l Airport Tampa International Airport has secured new daily routes to Cuba and Switzerland this year. British Airways also added two flights a week and now flies daily.
Data Driven ROI Mindset
DDM: A Matter of Survival
What’s Next for You?• How connected are your customers?• What stage are you in?• What is your competitive position?• How vulnerable are you?• How connected are your employees?• Do you use social technology?• What kind of experience can you create?• How do you currently use data?
Sources Precision Marketing by Sandra Zoratti, Lee Galagherhttp://precisionmarketingbook.com/
Sources CMO Council, Why Relevance Drives Response and Relationships; Using the power of Precision Marketing to better engage customers, 2009. Michael Cannon, Nine Silver Bullets to Increase Marketing’s Relevance, Silver Bullet Group, Walnut Creek, CA 2010 The Economist, A Special Report on Managing Information, February 2010. Jenny Davey, Every little of data helps Tesco rule retail, Sunday Times (London), October 4, 2009 Tampa International Airport playing its own version of “Moneyball,” to bring in new business, Tampa Bay Times, September 2, 2012 IBM Social Business: http://www.youtube.com/watch?v=Af- y81e-i6U&feature=youtu.be
Sources Ana Silva O’Reilly, Grow Community: http://www.businessesgrow.com/2012/07/10/case- study-finnair-puts-social-media-community-to-work/ Three Stages of Social Media study: http://www.slideshare.net/colleencar/increasing- social-media-roi-using-gladwells-tipping-point- framework-4539106 IBM Highlights of Chief Executive Officer Global Study: http://public.dhe.ibm.com/common/ssi/ecm/en/gbe034 86usen/GBE03486USEN.PDF
Bernie Borges CEO, Find and Convert Transformational Digital Marketing bernie@findandconvert.com http://www.findandconvert.comStrategy Execution Results Support

4 Marketing Paradigms Brands Can NOT Ignore

by Bernie Borges on Sep 21, 2012

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