From Personalization To Collaboration…The Key To Connecting With Customers

July 7, 2010

Today’s marketers live in an age of volatility and transition. Instantaneous transactions, multiple touch points, and the merging of offline with online have combined with a multitude of media outlets (including social media) to create ever-savvier audiences that are harder to find and keep. (Source: Business Week survey Sept. 2009)

For those of us who have been involved with direct marketing for more years than we care to remember, the “Holy Grail” was always the goal of personalization. That meant everything from testing closed face envelopes to highly targeted copy/content aimed at establishing relevance and attracting the interest of our consumer or customer.

Amidst this fast moving environment powered by technology, today’s marketer enjoys a rich menu of options for reaching the customer. In return the marketer receives a vast amount of data from which they need to be able to capture the meaning, implication, and importance of that data. Personalization alone is no longer sufficient. Today there are two other concepts that are even more critical to achieving success.

I came across a Business Week survey from September 2009 titled “From Collaboration to Personalization”. Hence the inspiration for my post however, I felt that from my perspective it worked better turning it upside down. The survey outlines three pillars critical to success and I could not agree more. They are: Collaboration, Multichannel Marketing and Personalization.

Collaboration: (Collaboration has both internal and external resonance)

Internally, the opportunity for collaboration exists between marketing teams that transact with all relevant marketing functions stemming from online and offline activity. Without collaboration, marketers may potentially employ both online and offline data and still be unable to serve customers fully. When internal departments and their functions do not exchange customer information, marketers are unable to craft a unified view of individual customers, and thus cannot target them with tailored information, offers, and products.

Externally, collaboration is about the way a marketer coordinates the online and offline customer experiences and data. Many companies today keep what should be “team” functions separated in silos, both internally and externally. Failure to coordinate marketing across silos results in an inability to fully enable multichannel marketing, which in turn prevents an effective personalization strategy. 

Multichannel Marketing:

Multichannel marketing is the act of bringing together online and offline data and functions. By weaving together the functions and consolidating information gleaned from combining multiple marketing activities, marketers can set in motion the actions that lead to full personalization. Only when multichannel marketing is employed will a company be able to personalize and target customers.

Personalization:

Personalization is rooted in the concept that the “customer is king,” and utilizes multichannel data to target customers with products and services specific to them based on their behavior. It requires a 360-degree view of a customer’s behavior so as to provide the most complete marketer-to-customer experience. The full concept depends on an integrated approach (collaboration), which in turn depends on multichannel marketing, without which personalization cannot be attained, and all of which depend on employing the most innovative technology available.

The survey asked Marketers, “Which statement best describes marketing accountability as it relates to activities in 2010?

46% of respondents said that it was about effectiveness.

41% said it was about optimization.

39% said it was about communications strategy.

Despite this apparent focus on effectiveness, optimization and communications strategy, at present only 58% of marketers’ report that they use technology to measure and compare all channels’ performance in one view. To my mind, this appears to be a very rich new business opportunity for agencies that can truly provide a unified approach, supported by all the necessary tools, capabilities and knowledge!


Gatorade Puts Social Media At The Center Of Marketing

June 21, 2010

 

The company recently created the Gatorade Mission Control Center inside of its Chicago headquarters, a room that sits in the middle of the marketing department and could best be thought of as a war room for monitoring the brand in real-time across social media. (Source: Mashable.com)

 According to a recent blog post on Mashable.com this iconic mass marketer is taking social media marketing very seriously.  The goal of this project, says Carla Hassan, is to “take the largest sports brand in the world and turn it into largest participatory brand in the world.” To that end, the company’s not only monitoring its brand on social media, but giving its fans increased access to its athletes and scientists.

 In the realm of marketing, Gatorade is probably best known for splashy commercials featuring some of the world’s most famous athletes. However, a new effort behind the scenes of the sports drink maker is putting social media quite literally at the center of the way Gatorade approaches marketing. 

The company recently created the Gatorade Mission Control Center inside of its Chicago headquarters, a room that sits in the middle of the marketing department and could best be thought of as a war room for monitoring the brand in real-time across social media.

The room features six big monitors with five seats for Gatorade’s marketing team to track a number of data visualizations and dashboards (also available on to employees on their desktops). The company custom built this capability with partners that included Radian6 and IBM. Below are a few of the visualizations that Mashable.com featured in their blog post:

 This monitor is a visualization of tweets that are relevant to Gatorade; the company is tracking terms relating to its brand, including competitors, as well as its athletes and sports nutrition-related topics.

 This monitor measures blog conversations across a variety of topics and shows how hot those conversations are across the blogosphere. The company also runs detailed sentiment analysis around key topics and product and campaign launches.

Mission Control in Action 

While this certainly looks impressive visually, it’s also actually being used on a day-to-day basis, to lead product and marketing changes at the company that might not have happened without it.

Gatorade’s Sr. Marketing Director, Consumer & Shopper Engagement Carla Hassan offered a few examples, starting with the company’s monitoring of its “Gatorade has evolved” campaign. The commercials featured a song by rap artist David Banner, which, Mission Control quickly saw was being heavily discussed in social media. Within 24 hours, they had worked with Banner to put out a full-length version of the song and distribute it to Gatorade followers and fans on Twitter and Facebook, respectively.

On a day-to-day basis, the facility is also being used for more conventional marketing tactics like optimizing landing pages and making sure followers are being sent to the top performing pages. As an example, the company says it’s been able to increase engagement with its product education (mostly video) by 250% and reduce its exit rate from 25% to 9%.

What’s interesting to note is that this innovative approach to social media marketing is not being led by an agency, but more surprisingly by a large traditional mass media marketer. Is this just another missed leadership opportunity for the agency world? Given the significant up-front commitment required in terms of technology and people resources, would this not have been an ideal opportunity from a multi-client agency perspective?

Social media is no longer just a stand-alone communications channel that can exist and be managed in a silo environment. It underpins the way we all communicate with each other and with brands and the companies that own them. Marketers that understand this and embrace it the way Gatorade has will be able to maintain considerable competitive advantage. In fact to put it in their own words…“take the largest sports brand in the world and turn it into largest participatory brand in the world.”



The Top Four New Business Trends for 2010

January 19, 2010

As the advertising world slams the door on a very difficult 2009, advertising agencies are looking ahead to 2010, hoping to deliver stronger growth in the sector. What lies ahead? Nobody really knows – However here are four key trends that in my opinion are sure to make waves in the marketplace!

The End of the Digital/Traditional Agency Divide.

I have no doubt whatsoever that the imaginary line dividing traditional and digital agencies will not completely disappear. But 2010 will see the distinction blur to the point of being meaningless. The Great Race, as Forrester Research calls it, pits digital shops looking to hone their branding chops against traditional agencies adding tech skills. This will in turn lead to more digital agencies competing for (and sometimes winning) through-the-line assignments, plus more clients will be willing to choose a lead agency based on which of its roster shops comes to the table with the best idea.

Social Media Will Become Synonymous With Digital.

There is no doubt that Twitter became the Cinderella of 2009. In 2010 we will see social-media tools being treated as an integral component of the digital world as predicted by Altimeter Group’s Charlene Li :

“Social media will become “like air,” and be pretty much everywhere”.

That means publishers and marketers will use tools like Twitter and Facebook Connect to make experiences more social. More marketers will look at social as an integral part of their digital strategy, rather than a stand-alone area for experimentation.

 The Year Mobile Marketing Comes of Age

I know that I have written about this subject many times over the last year however, 2010 is certain to be the year when the mobile advertising market finally takes off.  According to a recent Adweek article, heavyweights Apple and Google are poised to face off in the key markets, with Google pouring its seemingly infinite resources into the development of the Android operating system.

The competition will open up new opportunities for marketers in the burgeoning app economy. The biggest push should come in location-based services, which hold the possibility of giving brands the chance to minutely target consumers.

Data Du Jour.

In 2010 we will continue to see exponential demand from marketers for data served up real time in a user friendly format. Agencies will be expected to have the ability to integrate data across all channels and from all sources. They will be looking for everything from data analytics, to web analytics to data modeling in support of personalized content delivery to advanced behavioral customer data and segmentation. 

A 2009 survey conducted by Unica revealed that 72% of marketers had no full time staff member devoted to data analytics. In 2010 they will solve this issue by either developing the capabilities in-house or source it from a capable agency partner.