4 Marketing lessons from SPC

marketing

There is a lot to learn from the SPC imbroglio, the feds must be delighted to have got away with their IR/”no more handouts”  agenda intact as the Victorian government bailed out not only SPC, but their federal colleagues, albeit not a good look for the state version and federal version of  the same party to take a different position on a matter that both are saying is fundamental to their philosophy.

But what can we marketers take away?

    1. Every conversation has many sides. Jan Carlzons great “Moments of Truth” idea from the 80’s hold true in the C21, but the moments have been multiplied by the proliferation of connected devices. Not only do we need to  have to have those we used to call “front line” troops on the hymn-sheet, but we have to have everyone on the sheet, as the conversation is now  much wider, and almost totally uncontrollable,  unlike the past. Best you can do now is have a credible seat at the table. I wonder would Sharman Stone have had the same impact 25 years ago as she has had over the last few weeks? I suspect not.  Her message would have been the same, but her ability to access consumers, interest and advocate groups, and the public would not. She may have got a sound bite on the evening news, perhaps a radio interview, and the local paper would have run it indefinitely, but would the rest of us have been aware of  the Gaffs the PM made about the workers entitlement, the connections made with the car industry, the Cadburys decision and Tassal decisions? No.
    2. We do care about local industry. SPC sales soared after the publicity, Australians do care that local industry is being decimated, but not enough to buy more cars. Is the cause of agriculture is closer to our national psyche than cars? Perhaps the cost of a car Vs the cost of a can of peaches had something to do with it.  It will be interesting to observe how a renowned marketer like Coke extends the effect. I doubt they will be able to, as they will just revert to the tried and true, the plan, and what has gone before, when the context has changed completely. Having the cultural agility to completely change the message is usually beyond hierarchical organisations. I would radically alter and expand SPC consumer communications to keep the mood alive, and the retailers on side.
    3. Marketing needs to be agile, and connected. Following the above point, the production of annual marketing plans that feed into strategic plans, with budgets, accountabilities, media plans, and all the rest remains a vital task, with the huge caveat that things move so fast these days, that marketers need to be prepared to respond instantly to stuff that emerges. That single twitter post highlighting a product failure  cannot be left alone, you may choose to do nothing, but ignoring it is not an option, you risk the classic  “United breaks guitars” response.
    4. Marketing is the driver of everything.   Marketing used to be just another functional responsibility, usually seen as a poor cousin to operations and finance. No more. Those enterprises that continue to see Marketing as the producer of the ads and promotional material, diviner of new products, and artistes of the long lunch rather than an idea that is  the responsibility of everyone to be a part of, the driver of perceptions, and the voice of the market inside the enterprise will not be long in the business.

How does your place rate?

 

 

Marketing is telling stories.

storyteller

B2B and B2C is the way marketing has been described for the last 20 years.

Nonsense.

Marketing when successful has always been P2P, person to person.

Successful marketing is about engaging  with people and people engage around stories, not data and specifications, and jargon, stories.

Stories about your history, products, and how they relate to the world, happy stories, informative stories, stories that are  metaphors, that  enlighten, that pique curiosity, that deliver lessons of things that should not be done again,  and sometimes sad stories.

Successful marketing is always about the stories, and stories are told by people, even when there is a vehicle for delivering the story in the middle.

If you remember this basic building block of our humanity, marketing becomes easier.

 

8 Moments of truth

moment of truth

Jan Carlzons great 1987 book Moments of Truth reflected on the point at which a “front line” employee interacted with a customer, and how important that interaction was. The digitisation of our lives has profoundly changed the context in which interactions occur, the moment is no longer the point at which some personal  interaction occurs, it is now far more likely that it will be a digital one, and in addition, “front line” now includes everybody.

The idea of Moments of truth needs to be expanded, and categorised so they can be managed independently if it is to be of much more than a cliche.

  1. Opening moments of truth. That may occur anywhere!! Anyhow on a range of platforms.
  2. Referral moment of truth, When someone refers someone else to a web site, blog post, social media platform etc.
  3. Conversion moments of truth. When a “lead” evolves into a “prospect”. Then there are more as the prospect moves through the system to the transaction
  4. Depart moments of truth. The point at which prospects drop out of the funnel, what do you do with them then? Do not lose them!!!! Figure out how to re-engage.
  5. Recidivism moments of truth. The point at which a departed prospect returns to the funnel. Sales funnels as a metaphor work, but the neat, orderly and logical progression seen on all the whiteboards and consultant presentations are far from the truth. The process of moving a contact through a set of steps towards a transaction, then hopefully, many subsequent transactions is messy, random, often illogical and emotional. Therefore, a key marketing task is to raise your recidivism rate
  6. Apostle moments of truth. When a user becomes an advocate, an apostle, for you.
  7. Complaint moments of truth. When customers complain, that is potentially full of information, and opportunity to serve them better, discover where and how you can improve, and convert them to advocates. Alternatively, give them to your competition to harass, as the customer is not always right, but the right customer is always right.
  8. Loyalist moments of truth. When loyal customers return, they do so because they have been satisfied in the past, convenience, the offer is compelling, and sometimes just because it is easy. A returning customer costs way less than it costs to find a new one, the loyalists are the financial backbone of every enterprise, thank them, and treat them like you are grateful for their custom, and pleased to see them again.

I tried some word games to make  the list more memorable, hopefully you can do better than me, I’m just happy that the idea that the context of MOT’s reflects the way you should treat it.

 

How to be Successful with direct mail

Direct-Mail1

Digital and email marketing is just the C21st version of direct snail-mail. Why is it then that we despair when our email open rates are only 2%, when that is all most direct mail campaigns ever got?

I think we are looking at things from the wrong end of  the telescope.

Direct mail, and email campaigns can be hugely successful, we have all seen and heard of those successes, and when you look at them, the reason for the success is nothing tricky, but plain common sense.

The offer was personalised and compelling

The audience was engaged and willing

The communication channel delivered the offer with a minimum of fuss

The offer was easy to access

The creative in the communication was, well, creative and appropriate to the intended audience.

Those unsuccessful campaigns we see seem to concentrate on the above list in reverse order, worrying about the layouts smart photos, intriguing puns, and all the rest of the creative artifices, relegating the value of the offer to a specific audience, and the way that offer is communicated  to the bottom of the pile.

Want success with direct mail/e-mail, get the customer to the front of the queue, worry about the rest later.

Shakespeare invented Twitter!

Shakespeare and twitter

Willy said many things that have been repeated, and repeated over the years, nuggets of truth that resonate today, may of which have a place in management thinking.

“Be great in act, as you are in thought”

“In time we hate that which we often fear”

“Nothing emboldens sin so much as mercy”

“Strong reasons make strong actions”

“No legacy is so rich  as honesty”

One line that conveys a message we should all remember that I stumbled across again the other day is from Hamlet, Act 2, Scene 2: with Polonius telling the Queen that he thinks Hamlet is mad, but being careful with his language so as not to offend :

“Brevity is the soul of wit”

The discipline of 140 characters to convey an idea, objective, mission is a great discipline, one that we can all benefit from, and that most who use twitter could certainly benefit from. It would save me from the crap that fills my devices every day, necessitating a filtering process, that inevitably, filters out great ideas poorly communicated.

Brevity with meaning is not only the soul of wit, it is bloody hard to achieve.

Pitching an idea

Jelly beans

The most powerful way to get someone to agree with your idea is to ask them the leading question, and have them give you the answer you want.

Ronald Regan used this technique a lot.

He did not tell the American people during his election campaign: “your economic situation has deteriorated over the last 48 months”, instead  he asked the famous question:  “Are you better off now than you were 4 years ago?”. The answer was a resounding “NO” which led to the obvious follow up question:” What do you need to change?”

Resoundingly, he was elected.

Asking a question compels a response, and the formulation of the words to convey that response in turn provokes a deeper, more intensive processing of the question, and leaves less room for ambiguity in the way the receiver responds.

It is the beginning of an engagement process.

However, it does not always work.

Ever noticed how pollies never answer the question asked unless the answer suits them?

Watching the 7.30 report a few minutes ago (Aussie readers will know what that is) the Opposition leader, in response to pointed questioning about the announcement by Toyota today that they will cease manufacturing cars in Australia, simply pointed out that in the 5 months since the Abbott Government had been elected, all three car-makers had announced production would cease.  As if the last 25 years, overvalued $A, and small scale of the domestic market had no impact.

To anyone with half a brain watching, his failure to at least address the question in some modest way, simply corroded his credibility.

So, answering a question well is as much an art as asking them, and can be used to turn the tables.

Next time you see a really good salesman, just watch and listen, and learn.