How to target high-value sources of growth

This post is the first of a series that will address the biggest problems that marketers face today (as identified by AMA). The purpose is to make you think . . . and hopefully help you address these problems in a new way.

A couple of years ago, I heard an interesting talk from Lars Wulff, CEO of Mud Bay at a PSAMA South Sound meeting.  Lars told us the story of how he and his sister have led the growth of their company from one store to twenty-five, with plans to add 4-5 more stores in the coming year.

Start by asking the right questions.

Lars began his talk by asking the audience some questions - who owns pets? who has ever shopped at a Mud Bay store? Who considers Mud Bay their primary pet store choice?  He then asked the most important question – why?

Lars reminded me of Simon Sinek, author of "Start with Why", one of the best approaches to business and leadership I have ever heard.  Simon believes that “People don’t buy you make . . .  they buy why you make it”. He cites Apple as a great example of understanding that most companies tell you what they do, and how they do it.  But the key to success is to answer “why they do it”.   If you don't know Simon Sinek, take the next few minutes to view this condensed explanation of how innovative companies differentiate and grow their business and how great leaders inspire action.

Find a niche and own it.

I have always believed that your positioning strategy must be unique, believable, relevant and true.  In today’s hyper-competitive, global marketplace, unique becomes the true differentiator.  With so many options to choose from, and the ease of buying through e-commerce, without a unique niche, you are primarily competing on price or availability.  And neither of those strategies is sustainable in the long term.

Focus on serving your customer.

During his low-key, interactive presentation, Lars Wulff was interrupted several times with questions, and one of those questions was 'Have you considered other growth avenues beyond simply opening new stores?".  His response was immediate and genuine.  He replied “I am planning a session with my key management team to explore ways to enhance the customer experience, and that will determine any new directions we move".

Notice that he didn't say we will "explore ways to grow the business".  His response was to look for "ways to enhance the customer experience".

What a great way to approach business and growth!  Every company wants to grow.  How many approach growth from the customer's perspective?  How many companies have made missteps because they added new services instead of customer benefits to grow their business?   How many agencies have added new services or digital marketing departments or capabilities to "enhance their customer's experience" vs. just to gain more revenue?

Lars had a lot of good things to say about the importance of understanding and maintaining a consistent and strong corporate culture.  And the necessity of having a differentiating benefit that would build customer loyalty.

But the real strength of his organization is his basic approach to business growth "How do we enhance the customer experience?"

In a world with so much competition and so many options, asking the right questions, finding your niche and focusing on your customers can be the difference between success and failure.

Are you asking the right questions to identify those high value targets?  Isn't that a good place to start?

Who is responsible for new business at your agency?

If you didn't answer everyone, you are missing an important opportunity for growth.

One of the first things I tell my agency clients is that everyone in the company should be responsible for new business,  Not just the New Business Director.  Not just the President or Chief Executive.  Everyone.

But unfortunately, most companies don't take advantage of an obvious and relatively easy way to make sure you are always prospecting for new business.

When you are at a party and someone asks you about your company, a senior manager can probably come up with a relatively good description of not only what you do but why that is important.  Some people call it an "elevator pitch", some call it their "company mission or vision".  Most experienced, senior executives with the company could handle the question with ease.

But what about your junior people?  How would they answer the question "what do you do for a living" if asked by an outsider?  Can they describe your company's unique selling proposition in a short, coherent sentence?

In my experience, most junior employees would fail to take advantage of an opportunity to promote your company if asked that question because too many companies (a) don't have a written "elevator pitch" about their company, and (b) haven't shared what they believe is their corporate USP at every level of the company, and (c) haven't taken the time to promote the valuable role every employee can (and should) take in marketing the company.

 A simple question about your company can be a great opportunity to gain awareness and potential customers, but not everyone understands the role they can play in helping the company with the right answer.

I was reminded of the importance of being able to quickly state something about your company on two occasions last week.  At a recent committee meeting, we introduced ourselves to each other and I was struck by the dramatic difference in the way people described their company.  Some had a very succinct statement of the unique way in which their company approached the market, but others, mostly younger, had only a generic description of their company's business category.

At a networking social last week, the host invited attendees to come up to the microphone to introduce themselves and what they did for a living.  Several of the marketing directors/ company owners confidently introduced themselves and stated something important about their company, but others fumbled the ball.  I was particularly struck by one gentleman who very meekly said that "I guess you could say that my company ..."

What a missed opportunity!   Fortunately, there is an easy solution -- develop a short, 25-30 word statement that describes these three points: who you are, what you offer, and why that is a benefit to your customers.  It doesn't matter if you call it an elevator pitch, a mission statement or simply a company credo.  The important thing is that every employee, not just the owner or marketing director, should be armed (and encouraged) to sell the company at every opportunity.

At my agency in Virginia, I gave everyone in the company a hat with the phrase "insights and solutions" stitched into the back of the cap as a reminder to everyone of our company mission.

A written statement about your company that is shared with everyone in the company can be a great way to ensure that all staff members can contribute to the company's business development efforts.

Draft a statement, then call in key managers (or all employees, depending on the size of your company) and give everyone a chance to react, respond and truly understand the importance of having a concise, accurate statement about the company.  Be sure to seek their opinion and listen to their suggestions for edits.  By having others involved in drafting and approving the statement, they will develop an emotional equity in the result.

When developing your "elevator pitch" or "company mission statement" follow the K.I.S.S. principle"

1.  Keep it short.  Studies are varied on the average adult attention span, but all agree that is is short and getting shorter every day.  So be sure your statement has just enough information so that after only hearing a sentence or two, someone knows what you do.
2. Keep it simple.  Avoid industry or technical jargon that your listener may or may not understand. This can especially challenging for a technology company, but should also be considered regardless of your industry.   I remember my first trip to the furniture market in High Point, NC when I was just learning that market.  In a casual conversation at the airport, I asked the man standing next to me at baggage claim what his company did and he said they manufactured cocktail tables.  When I asked what a cocktail table was, he looked at me like I was crazy.  Apparently, the furniture industry didn't use the term coffee table (and many still don't), so make sure you avoid company or even category jargon that your listener may or may not understand.
3.  Keep it sales-oriented.  Find the benefit that is most relevant and compelling and make sure you keep that thought front and center. 

You should also stress to everyone in your company that you never know when a new business opportunity will arise or have the potential to develop. Being armed with a quick statement about your company can be especially helpful when meeting someone in a non-business setting - at a social event, at church, waiting in a ticket line for the new summer blockbuster movie.

Even if you don't think the person asking the question is a new business prospect, they may have a friend, relative or former college roommate who is. So everyone in the company needs to be prepared to give a consistent and accurate description of your company's USP.

Have you "mobilized" your clients?

Or for that matter, have you "mobilized" your own brand by optimizing your site for mobile viewing?

I continue to be dumbfounded by the number of agencies that have not optimized their site for mobile.  And I wonder if they are also missing that opportunity to lead their client by helping them to understand and appreciate its value to their business?

InMobi released a new study this week that examined the media consumption and shopping behaviors of 9,600 U.S. consumers across PC’s, smartphones and tablets.  We all know that mobile is growing - just take a look at your own personal use. So it shouldn't come as a shock that the rapid growth of tablets and expanded use of all types of mobile devices is impacting how U.S. consumers shop and consume media.

After all, tablets are now owned by 11% of the total U.S. population (29.5 million U.S. users) and I'm betting by almost all of an ad agencies staff.  But this study reminded me that consumers are spending more time on mobile connected devices, with time spent on smartphones and tablets playing a significant role in purchasing decisions.  Some of the more important findings are shown below.

Mobile devices are cannibalizing other forms of entertainment consumption as users are spendiing more time each day accessing media content.
According to the study, over 60% of tablet owners spend at least 30 minutes each day, and 29% report that they have reduced reading books in print after owning a tablet.  Another 29% report they have reduced surfing the internet via their PC or laptop and 48% agree that the design and readability of a tablet make it easier to access media content than on a PC or laptop.

Tablet users report they are shopping less in brick and mortar stores since purchasing a tablet.
Almost one in four respondents (22%) say they are shopping less in physical stores and more than half (55%) make purchases on their device in an average month.  The survey also demonstrates the impact of their lifestyle on shopping, as tablet users prefer that device at home, but prefer smartphones while on the go.

Mobile devices are impacting every stage of the purchasing decision, from evaluation to post-purchase.
Tablets are affecting all stages of the buying process, from awareness to browsing to the buying and even post-purchase social media stages. The study reports that transient shopping is help by the smartphone, while tablet use peaks at home in the evening for larger purchases that require greater consideration.  Among respondents that reported this use of connected devices, 55% say they first learn about the product on their tablet, while 53% actively evaluate and 58% follow through with purchasing those goods on their tablet.

Wake up agencies!  Clients need leadership, and this is a chance to demonstrate your value beyond a vendor of ads, or whatever.  If you have clients that want to optimize their selling opportunity, then now is the time to "mobilize" them.  If you wait until tomorrow, someone else may have already shown them the error of their ways.

And while you are at it, maybe you should  re-examine your own brand.

Are your clients thinking about how technology is affecting consumer behavior?

Mickey Alam Khan, editor in chief of Mobile Marketer and Mobile Commerce Daily, has written an excellent post on Consumer 2.0: How brands and retailers must anticipate the shopper behavioral shift in five years.

His point is that so much dialogue has been focused on new technologies, that too many marketers are forgetting to discuss the "sea-change in consumer behavior expected in the next three to five years".  I agree wholeheartedly with Mr. Khan.

The traditional sales funnel has been displaced by a new brand decision model that continues in many cases right up to the point of sale.  And with the continuing impact of peer-to-peer influence and the advent of mobile shopping tools, marketers cannot afford to keep their planning focus solely on which is the best technology to use.

He goes on to say that "smartphones and smart televisions and smart cars and smart clothes and smart food will shape consumer behavior in the next three to five years where most marketing fundamentals developed even a decade ago will be rendered obsolete".

I was particularly intrigued with his identification of four growing consumer behavior trends that will greatly influence how customers interact with brands and retailers over the next few years.

Customer impatience will doom many potential sales.  With so many options, consumers will have no tolerance for anything that delays their purchase, online or in-store.  Every element of the customer service response, from page uploads to physical or online/mobile checkout will be scrutinized and only deemed acceptable if there are no delays. It is not seconds, but milliseconds that will matter here.
A frictionless shopping experience will be the goal. The entire searching, shopping, browsing or buying experience has to be devoid of hurdles or pain points. Smooth transactions will be the minimum expectation, and intuitive response to customer overtures will be the norm.
The lowest price will be the deciding factor for most purchases.   We can only blame ourselves for this expectation. We have trained most consumers to shop by price – except in the case of brands that maintained their mystique and value to customers.  Consumers will not always expect cheap, but they do expect affordable.
Brands will need to be connected 24/7. Consumers do not expect brands to have a downtime in any area – be it shopping hours, product delivery, returns, customer-service calls or email or text responses. They expect to access the marketer or retailer on their own terms – always on, always there, always helpful, always friendly, always obliging.

We've all got to keep up with technology changes, but we can't forget how those technologies are impacting the buying decision process.The launch of new devices every year – new tablets, new smartphones, new smart TVs, new applications, new smart appliances, etc. – is forcing consumers to change their ideas about how to buy, when to buy and what to buy.  Are your clients ready for this sea-change?

Can you hear me now? Highlights from the 2011 Mobile Consumer Report

If you company or clients have been slow about exploring mobile marketing, it’s time to wake up and smell the coffee.

According to a new report from Experian Simmons, almost 1 in 3 cell phone owners today believe that their cell phone will be their primary entertainment device in the future. But more importantly for marketers, this new study says that 30% of adult iPhone owners now say they want to use their phones to pay for purchases in stores compared with just 12% of non-iPhone owners.  That means a customer could walk into a store, research a product, but then buy from Amazon or another source on the spot.

Interestingly, those same would-be mobile payers appear to be very receptive to mobile ads.  23% of cell owners interested in making purchases with their phone also say they are “interested in receiving advertisements on my cell phone,” versus just 5% of all cell phone owners who say the same. Furthermore, 52% of cell owners interested in making purchases with their phone are also “willing to accept advertisements sent to my cell phone if I were to receive something of value in exchange,” versus just 12 percent of all cell phone owners who say the same.

The growth in these behaviors and attitudes cannot be ignored.  Here are some other noteworthy findings and conclusions from the Experian Simmons study:

227 million Americans own a cell phone: Over 9-in-10 adults, 7-in-10 teens and 1-in-5 kids
Cell phone ownership among American adults stands at 91%, up from 72% in 2006. The vast majority of teens, too, have joined the mobile revolution, with 74% of those ages 12 to 17 porting a portable phone, up from 59% in 2006. Even tots are getting into the act - 22% of kids ages 6 to 11 own a cell phone today.

The Experian Simmons study identifies five distinct segments of mobile consumers.

• Mobirati (20% of users): Representing the mobile generation, they have grown up with cell phones and cannot imagine life without them. Cell phone devices are a central part of their everyday lives.
•  Social Connectors (22% of users): Communication is central in their lives, and cell phones allow them to keep up-to-date with friends and social events. Their phone is the bridge to their social world.
• Mobile Professionals (18% of users): Smartphones help them keep up with their professional and personal life. Their phone has become their all-in-one device for communication and information needs.
• Pragmatic Adopters (20% of users): Cell phones came to being during their adult years. They are now learning that there are other things they can do with mobile phones beyond just saying “Hello.”
• Basic Planners (21% of users): They are not into cell phones or the world of technology. Use of cell phones is just for the basics. The cell phone is just another communication device for these consumers.

While pictures are still the number one activity, web surfing and video are the fastest growing uses.
It’s not surprising that using a cell phone to snap photos is a routine, everyday occurrence (73% of cell phone owners say they have snapped a pic in the last 30 days).  The more important statistic for marketers is that web surfing is also becoming commonplace among smartphone owners.  56% of users now access the Internet with their phone at least once a month. That a 41% increase since 2008.  What’s the next big thing? Video: 18% of all cell phone owners now watch video either streamed or uploaded to their phone, up from just 10% in 2008.

Mobile phones are quickly becoming an indispensable shopping tool.
According to the latest data, at least 33.3 million Americans now use their cell phones for shopping-related activities. The most common mobile shopping activity is researching products and comparing prices, which 15% of mobile phone owners now do every month. The most common items consumers want to buy via their cell phones are: Tickets to movies/events; Travel services and Games/Toys.

There are many other findings on m-commerce in the study.  You can access the complete study here. 

Which I highly recommend if you have a client or prospect that can benefit from this knowledge.  With a little help from you!

Help Your Clients Define What Business They Are In.

I just read an interesting article in the latest issue of Marketing Management that reminded me of the importance of knowing what business a company is really in. Looking at a prospect's business from that perspective offers an interesting ice-breaker approach to developing a new client.

The author began the article with these statements: McDonald's is not in the hamburger business, Mercedes-Benz is not in the car business, Clinique is not in the cosmetics business and Hush Puppies is not in the shoe business.

His answer is that all of these companies are in the solutions business, based on the Theodore Levitt quote from his 1983 book The Marketing Imagination (still one of the most influential books I have read) :

People don't buy things, they buy solutions to problems.

Levitt's answer at the time was that McDonald's should consider themselves in a broader context, i.e. the fast-food business, Clinique in the beauty business, etc. But that answer falls short in the reality of today's overcrowded business environment.

This means that McDonald's has to go beyond the broad stroke description of fast-food to realize they are in the business of convenience, entertainment for kids, family-friendly dining, quickness, efficiency, etc. Similarly, while Clinique may sell cosmetics, they are really in the beauty, self-image, self-esteem, age transformation, sex appeal business.

This isn't totally new thinking, but in today's "long tail" marketing world, where product specialization has become essential, companies need to revisit this line of thinking on a regular basis. Knowing what business you are really in opens up new thinking about marketing strategy, competitive environment, and new product development.

And for agencies and marketing services companies, it opens up a new way to reach out to business prospects with value-based thinking that can grow a client's business.

And that should be the business every agency is in!


Don Morgan is Head Rainmaker at Raindance Consulting, a business development and social media consultant in Seattle.

Circling the wagons. Can Google+ out-connect Facebook?

The Google vs. Facebook battle just got a little hotter. Google Executive Chairman Eric Schmidt has announced the introduction of Google+, their newest (and hopefully better than Buzz or Orkut) foray into the world of connections among friends. Or in this case, “circles" of user groups.

But according to Mr. Schmidt, this latest introduction is not an attempt to compete directly with Facebook. "Our social strategy is to take our current products, get users to give us social information and make our current products better," said executive chairman Eric Schmidt, talking to journalists at the Cannes ad festival.

It is obvious that the bigger opportunity for Google here is to harness the data about human connections generated by the social web and apply that to search and even display advertising.

Grouping your connections into "circles".
Google+ is different from Facebook in that you organize your friends into groups, such as family, work, friends, etc. This can be an advantage over Facebook if you want to share work-related information that your friends or family would not have an interest in seeing. Or if you want to share photos of a more personal nature that you don’t want your business colleagues to see.
Another difference with Google is that there are no friend requests. People do not need to agree to be friends with one another and can view updates without sharing their own.

Google + breaks down the Facebook data walls.
Even though search engines now crawl Facebook for links, the data about users and friends inside Facebook is not accessible to outside companies. Google+ could be a huge deal for Google if people are willing to participate in their network. Google+ will give Google a place for users to create their own content but will be searchable and information rich for Google. And you can bet they will monetize that data.

No one is talking about the impact of Google+ on advertising. Yet.
Google executives declined to say how Google+ will affect their advertising offerings, but as people spend more time inside controlled environments such as Facebook and mobile apps, Google loses its power to search and monetize that walled-off content. Google did confirm that +1, an icon launched recently as a counterpoint to Facebook Likes is integrated into Google+. Since +1 will be used as a tool to improve ad targeting, it seems safe to assume that Google+ will be used as a major part of their future advertising strategy, if it succeeds.

Google execs say more information will improve usability of all Google products.
Google executives said that getting social information on their users will improve Google products across the board -- by allowing personalization. Most of Google's most popular products such as search, maps and YouTube do not require a login, which limits what Google knows about its users.

Google+ may have more impact on mobile than social networks.
"It would take a seismic shift for people to take their social stuff to Google," said Deep Focus CEO and founder Ian Schafer, who said that the real earth-shattering use for Google+ is in mobile, not social networking. "The biggest implication for Google+ is mobile," Mr. Schafer said. "For example, for people to be creating content wherever people are and using that to deliver messages to them and close the loop on sales. The promise of Google+ is closing the loop on social CRM."
For advertisers and brands, the potential impact of Google+ is huge. "A connection made with a brand in Google+ can eventually be tracked to a purchase," Mr. Schafer said. "If we can create relevant brand engagements with people and give them an ability to purchase the product at a later date -- whether that's three, six or 18 months later -- this brings us back to social ROI."



I like the idea of being able to control my shared content to selected groups, but I’m not sure I want to stop using Facebook. So, to me, the real challenge for Google+ will be whether people will want to devote more time to sharing given the current time-compressed world we live in. It will be interesting to watch.

What do you think? Is this a brilliant strategy for Google, or will it fall flat?

Importance of mobile marketing confirmed in new Google study.

A new study from Google, in partnership with IPSOS OTX Media CT, confirms the growing importance of mobile marketing and the need for your clients to capitalize on this new marketing tool.

According to Google, 79% of top advertisers don’t have a mobile optimized site.

This should be unacceptable to any advertiser, large or small, and represents a great opportunity for agencies to help their clients compete in today's digital marketplace..

The first thing agencies and marketers should do is read The Mobile Movement – Understanding Smartphone Consumers. This is a must read, with interesting and informative data on how smartphones are being used to help with our daily lives and our shopping purchase process.

Importantly, this study provides a great resource for agencies to convince their clients that the power of mobile marketing is simply too bid to ignore.

We all know there’s a mobile movement, and that smartphones are being used daily by millions of consumers. According to this study among 5,000+ adult (18-64) smartphone users, in the past seven days, 81% browsed the web, 77% used a search engine, 48% watched a video, and 63% stayed connected to our friends by visiting a social network.

What you may not know is the growing importance of the smartphone to our shopping behavior.
• 79% of users rely on smartphones to help with shopping regularly.
• 54% use smartphone to locate a retailer through directions, maps, or GPS.
• 49% compare prices to decide where to buy.
• 44% read product information and reviews.
• 40% look for promotions and coupons daily.

Smartphones are becoming an integral part of a multi-channel purchase process.
• 67% of users research product or service information on their smartphone and then buy in store.
• 23% research on smartphone, visit store to check out product, and then purchase online.
• 16% research on smartphone, visit store to check out product and then purchase on smartphone.
• 9% visit a store and then purchase on smartphone.

The Mobile Movement: Understanding Smartphone Consumers has a lot more information. For a free copy of the full report, go here. Or check out this video for a quick summary of the findings.



If you're one of those 79% of top advertisers don’t have a mobile optimized site, you need to read this report.

Staying Ahead of Trends For Your Clients

For some time now, I'm been preaching that agencies should be looking for ways to add value to their client's business beyond simply being a creative vendor. With new marketing tools being introduced almost daily, it is difficult and confusing for many clients to determine the potential value for their business.

When I read some of the reports from this year's SXSW conference, I saw what may be a great opportunity for an agency to lead their client. SXSW has a reputation as a predictor of what's new and what's next in tech marketing, and if that holds true this year then Groupon, Living Social and the local-deals market are the next big thing.

Based on the success of Groupon and others, hundreds of local publishers have launched copycat Daily Deal products in the last six months, and this is just the beginning. According to reports from the conference, several big names and mobile marketers are going after a share of this newly-formed billion dollar market with new and innovative products, including Google, Bing, Facebook and a host of location-based apps.

Google was forced to confirm the existence of Google Offers in late January when Mashable broke the news, citing confidential sources. Marissa Mayer, Google VP-consumer products, officially confirmed the new product offering with a keynote speech at SXSW detailing the search giant’s plans to offer a prepaid deals program that would compete with local deals giant Groupon, which the search engine failed to acquire late last year.

In November, Facebook launched Facebook Deals, which lets businesses offer discounts to Facebook users. The world’s largest social network announced it will work with local businesses on a "Groupon-like offering", which presumably means daily deals and discounts. This marks another social networking area that Facebook wants to conquer.

In the coming weeks, Facebook will allow users in Dallas, Austin, Atlanta, San Francisco and San Diego to buy deals through Facebook and share them with friends. Facebook sales' team will bring deals to local merchants and will also source deals through third-party networks like Tippr, Gilt City and Pop Sugar City.

In early March, Microsoft announced the launch of a new Bing Deals section on its desktop and mobile website. Rather than offer any money-saving offers itself, Bing Deals will give users the convenience of single-site sourcing by aggregating 200,000 offers in over 14,000 cities and towns across the US.

The deal search feature on Bing’s mobile website is location aware via GPS, allowing users to find the best offers within a few blocks of their current location. On the desktop version of Bing, deals are linked to venues. Any location you search for that’s currently offering money off will display a green Deal icon, linking through to details. With so many daily deal services out there now, being able to search for them through a unified, user-friendly interface like Bing will offer a major benefit to time-strapped consumers. Yahoo launched a similar service in November last year.

According to daily blogs from SXSW, even the little guys are moving aggressively in the local deals area. Loopt introduced its new Push Deals, a service for local retailers to sell slow moving or overstocked inventory over the course of hours. While Groupon offers deals within 24-hour periods for use over longer periods, merchants can send out Loopt Reward Alerts to get customers to take immediate advantage and drive them to their retail location. This means that if you’re walking by a restaurant and it’s a slow night, they can hit a button to send out a notification to give you a deal to come in. This works on a network like Loopt (as opposed to Foursquare) because the app uses background location to keep track of you.

Another location-based app, SCVNGR, is also jumping into the market with a new service called LevelUp. These deals have different tiers -- everyone gets the same deal the first time around, but you can unlock a sweeter deal on the second visit and one that's sweeter still on the third. "The goal is to turn newcomers into regulars," said SCVNGR founder Seth Priebatsch during his keynote. SCVNGR touts the real beauty of LevelUp for its merchants as retention.

Their execs point out that Groupon has built a great tool for acquisition to get new bodies through the door, but that model has proven easy to copy. As they described their goal, the daily deals crown will likely belong to whichever startup can figure out how to get those bodies coming back as repeat customers at regular prices.

Retaining its own customers is already a huge focus for Groupon. They plan to keep merchants and customers coming back through old-fashioned service and CRM tools. Google Deals is also tweaking the model in an attempt to turn users into repeat customers. The first visit doesn't automatically turn on a discount or offer -- customers have to check in multiple times to gain "Regular," "VIP" or "Guru" status before they can claim the discount. The experiment is only during SXSW for now, but Ms. Mayer said Google plans to expand nationally.

Foursquare has offered merchants deals through its app for some time now, but new features also demonstrate their focus on retaining customers. During the conference, Foursquare has partnered with American Express to tie transactional data to check-ins and customer behavior. Conference goers can link their AmEx cards to their Foursquare accounts so that when they check-in to a participating Austin business, the credit card automatically loads with bonus cash to go toward a purchase. The deal also means merchants can see transactional data through their analytics tools. For example, they can see that the top 20% of customers tend to check-in most frequently, or like one type of deal over another.

How big is the potential for the daily deals market? Well, if Groupon’s rejection of a reported $6 billion offer from Google wasn’t enough for them, they may know something we don’t.

What do you think? Should daily deals be a part of your client's marketing planning?

Do you really need social media?

For most companies today, the answer is yes. Social media not just the "flavor of the day" for marketers. There are real opportunities to engage with your customers to build a loyalty and commitment to your brand or company that can differentiate you in an increasingly commodotized world. And we now have real world case studies in almost every business category that prove its power.

But surprisingly, there are still some Luddites who haven't at least explored parts of the social media scene. And, I've spoken with more than one marketing manager lately who is questioning the value of social media for their company.

Here's a news flash folks. Social media won't work without a real understanding of what it can do for your company, a realistic plan for implementation, and the patience (and passion) to make it happen.

With humblest apologies to Will Shakespeare for my play on Hamlet's famous words, "to blog or not to blog" is not the right question. Let's talk about the real questions you should be asking before you launch your corporate blog, draft your next tweet, upload that video to YouTube, or whatever social media you want to use. Even if you are already using social media, it's not a bad idea to stop, take a deep breath, and really think through what you want to accomplish with the new digital marketing tools that are available.

Here are the real questions you should be asking about social media:

1. What is my goal for social media?
It is certainly logical to start with the big picture, but you would be surprised at how many companies say "we need a Facebook page" without a clear understanding of its potential value for their company and its role in an integrated communications plan. Just because everyone else has a Facebook or Twitter account is not a good reason for opening one.

If you are already using or considering how to use new technologies like blogs, podcasts, online video, wikis, widgets, etc. you need to make sure you know what you want to accomplish or you may end up using the wrong tool.

2. Who do I want/need to reach? Can social media reach that audience?
Technology has added a new dimension to analyzing and defining the optimum target audience. In addition to understanding their demographics and their psychographics, we also need to factor their technographics into the evaluation. How comfortable are they with using the new technology tools? Do they use their smart phone or their home computer most often? What new technology tools are they currently using? How would they prefer to interact with your company?

Good marketing still requires the basics of understanding your target audience, their media consumption habits and the benefits you can deliver.

3. What are the best strategies and tactics to reach this target?
This seems so basic, but is still a critical question that must be answered in order to optimize your ROI. Notice that I used the plural "strategies and tactics", not the singular. In most cases, you should be considering multiple social vehicles, but before you jump in you should make sure you have mastered one vehicle before launching another.

I believe that many companies that are failing or disillusioned with social media are simply trying to do too much at one time. They've launched a blog, added a Facebook page, YouTube page and Twitter account and are trying to monitor and evaluate, etc. with limited resources or without a realistic understanding and appreciation for the time and effort it takes to mount a successful program.

I recommend that you stop what you are doing and take advantage of the many free reports and white papers on social media for guidance on who's doing what. For example, a 2010 study concluded that Facebook is more popular for B2C, while LinkedIn is used by more B2B companies. But is that still the case? The challenge, and beauty, of social media is that it is continuing to evolve. Some have described the social media scene in the past as the Wild West. In many ways, that is still the case. So take the time to read current case studies that show the effectiveness of different options. And decide what is best for your business.

Internet search can help you gain better understanding of the best strategies and tactics to consider for your social media program. Just type "social media research" into your search engine and see how many hits you get!

4. What resources do I have available or need in order to implement an effective, on-going program.
Contrary to popular belief among many companies, social media is not a free alternative to traditional media. It will take time, money and patience to use social media effectively. Too many companies jump into social media without understanding how much time it really takes. Unlike Kevin Costner, you cannot assume that "if you build it they will come". That may be the most misunderstood element of social marketing. You can just set up a Facebook account and expect people to automatically LIKE you and visit regularly. You've got to give them a reason. And in many cases an incentive to do so. There are many tools to help you post, share and monitor your efforts more efficiently, but it will still require time on some one's part.

And it will require someone who understands the company and the audience, as every social media "expert" will tell you that content is king. So if you think you can just hand it off to that recent college graduate who is more comfortable with technology than some of your older staff, you should make sure they not only understand the technology, but also know how to write well and can represent your company brand.


There are many other questions that come up along the way, but these are the basics for anyone who is considering starting or expanding their social media effort. And if you've been using social media for awhile, it never hurts to stop, take a deep breath, and analyze what you've been doing based on these questions. Whatever you do, don’t make the mistake of putting the cart before the horse, as my dad used to say. Know the basics of who you need to reach and what you want to accomplish before you decide which new technology to explore.

And keep this thought in mind. Most of your customers don't want to have a relationship with your company unless there is some value associated with the effort that is required on their part. It's up to you to figure out how to engage them and keep them engaged. Good marketing still requires good marketing.

Mobile tagging. How creative marketers are turning smart phones into brand selling tools.

I've been saying for years that smart agencies recognize that clients are looking for leadership, not partnership. They want an agency that will bring them new insights and new ways to build a bridge between their customers and their brand.

After years of success in Japan, QR codes are finally beginning to emerge as a legitimate marketing tool in the US, and mobile tagging with QR codes is a great way to demonstrate leadership to your clients and prospects.

When Best Buy added QR codes to their product fact tags in all their U.S. retail stores last September, it made them the first national retailer in the US to acknowledge the future potential of mobile tagging. Since then, we’ve begun to see an explosion of new and creative ways to use the two-dimensional bar codes to enhance the marketing efforts of retailers and other businesses.

Some grocery stores are now using QR codes in the meat department to provide a wine recommendation for the tenderloin on sale, or to add a QR code with a recipe on an end aisle display. In both cases, using QR codes offers the potential to not only increase sales, but also to engage their customer in a way that builds brand loyalty without the façade of inflated price penalties for not using a shoppers card for that store.

The real estate industry is beginning to discover the selling advantages of replacing flyers on a lawn sign with a mobile tag that is never out of stock, and providing an on-site video tour wherever the QR code is placed. Tech savvy commercial real estate brokers are using QR codes to provide a 24/7 virtual salesperson to vacant retail storefronts. By scanning the 2D bar code, the reader is taken to a site with all occupancy, costs and local code details on the space

Now on newsstands, the 2011 Sports Illustrated Swimsuit Edition contains QR codes throughout the issue that provide access to extras such as videos, outtakes from photo shoots, interviews and personal profile data on models as well as additional information on the swimsuits that are featured in the issue. Readers are able to share what they find through social networks. Readers can also download the Swimsuit Mobile application by scanning codes found in the magazine. The codes are also featured online through the various websites associated with the magazine. Time officials see QR codes as an opportunity to revive the print medium by offering a way to provide more versatility for advertisers than the iPad and other tablets, which many are hailing as the future of the print medium.

When the Metropolitan Nashville Public Schools posted an abstract black-and-white square as its Facebook status update last week with no accompanying explanation, responses ranged from Huh? to Hurrah! depending on the users knowledge and use of their smart phone. In this case, the QR code led the smart-phone-savvy reader to an online schools survey.

QR codes to become an integral part of marketing in US.
Many tech experts and bloggers believe QR codes are on their way to becoming marketing and sales tools as ubiquitous as Facebook or texting and as familiar to US consumers as they already are to people who live in Japan and Europe.

MediaPost recently reported that 57 percent of Facebook and Twitter users said they have scanned a mobile bar code at least once in the past year, while as many as 40 percent had done so five or more times in the past year. A survey by Scanbuy found that mobile bar code usage jumped 700 percent in 2010 compared with 2009, with a big uptick during the Christmas shopping season when big-box retailers like Best Buy started adding the codes to their product packaging.

QR codes add another way for marketers to engage customers, but compatibility issues may hinder acceptance.
AT&T launched its own proprietary technology in August that requires the download of a free AT&T reader to scan. Microsoft has developed its own tags and compatible tag readers. A host of freebie websites have multiplied online that allow novice users to create their own unique alphanumeric embedded square bar codes by entering the data they want bar code swipers to be directed to.

With the resulting mix of codes and code-readers, and the variety of smart-phone systems — iPhone and Android, for example, are sold embedded with a different reader — one challenge of more widespread use is overcoming compatibility issues.

Robert Russell, AT&T's Atlanta-based mobility product management marketing director, said that global discussions are already under way to make the use of bar codes more standard. AT&T's scanner, he said, is able to read the three most widespread types of 2D codes.

"A lot of what's being discussed is how to make this ecosystem more standard," said Russell, speaking from Barcelona, Spain, where the Mobile World Congress was convening recently with standardization of mobile reading technologies part of the discussion.

Bar code information offers new potential for targeted marketing.
One advantage for marketers is the ability to gather even more data that will enable companies to keep tabs on who's using the bar codes. "Every time a code gets scanned, it brings 20 to 30 different metrics associated with the consumer, from the type of operating system being used (in the phone) to other things a consumer has voluntarily decided to enter into the scanner's settings," such as gender, age or other demographic information to create a user profile, Russell said.

Where QR codes go from here is limited only by the imagination of the marketer. Want more info and ideas? Dan Smigrod, CEO and Chief IDEAologist at GREAT!, a promotions agency in Atlanta, has several good posts on how to use QR codes. Follow this link to see his thoughts on ways to use this innovative technology to grow your business.


Helping your clients discover new ways to go to market is essential in today's agency environment. Are you leading your clients in exploring mobile tagging? If not, why not?

Is 2011 the Year that Mobile Finally Becomes Mainstream?

The cover story in the January 30 issue of Marketing News presents a solid argument that 2011 will be the year that mobile marketing finally becomes mainstream in the United States. For years, marketing prognosticators have been saying that mobile marketing would reach a critical mass, so when I saw the headline This Time It’s Different, I was curious as to why their editors felt that 2011 would be different. Here's what I found:

82% of U.S. consumers now own a cell phone, according to Forester Research. Tablets such as the iPad will reach 54.8 million units in 2011, according to Gartner Inc. and annual global tablet devices will reach 81 million by 2015 according to Juniper Research.
These are boxcar numbers that support their conclusion that 2011 will be different, but the real story is more than just about numbers. Mobile phones and devices have increasingly become an integral part of our everyday lives, and for many of us mobile is the “first screen” in our lives. When mobile first came on the scene, it was the third screen - behind TV and the Internet. Now with the advances in technology, and the widespread use of text messages and apps, mobile has become the first screen. It’s something your clients and their customers, no matter who they are, trust and use throughout the day.

The explosion of 3G and 4G devices, growth in data plans, and the resulting acceptance of smartphones are three key drivers for mobile growth.
According to recent comScore data, among mobile subscribers 13 and older, nearly half (48.9%) have 3G or 4G devices, up 23% from 2009. Their data also show that 33.4% of subscribers have some sort of data plan, and among those consumers, 83.9% have unlimited data plans. They now estimate that more than a quarter of U.S. consumers have smartphones, a 68% increase from 2009.

Apple’s iPhone and Google’s Android are leading the charge on improving customers experiences on mobile phones, which will boost industry growth.
And we can't forget about RIM/Blackberry, Windows OS, and Nokia's Symbian OS. When you hear the phrase “there’s an app for that”, it’s true. There are now almost 300,000 third-party applications officially available on the Apple App Store, and last week Apple announced they had reached over 9.9 billion downloads. It’s becoming second nature to shop, do research on products and services, and communicate with your friends throughout the day because the new phones are so easy to use.

Spending on mobile advertising is expected to grow more than six fold over the next four years.
Spending is expected to reach nearly $2.55 billion, according to eMarketer, a New York-based digital marketing research firm. Along with consumer’s increasing mobile usage, growing ad spending on mobile will help to fuel its growth. Julie Ask, a vice president and principal analyst in mobile and telecom at Forrester Research, feels that “the larger screens have resulted in an increase in media consumption, and that generally leads to more advertising.” A recent survey by the Mobile Marketing Association of 200 executives found that 24% of respondents said they would more than double or even triple their investment in mobile advertising in 2011 compared with 2010.

Other factors cited include the growth in “tools you can use” to aid your marketing efforts.
Mobile payment technology, mobile gift lists and mobile gift cards will open more opportunities for savvy marketers to take advantage of mobile as an important part of their marketing plans. Many marketers are now experimenting with text messaging to alert shoppers to deals, and mobile apps have moved beyond games and GPS to include everything from recipes to tips for parents to teach their kids smart eating habits. Another growing trend is location-based marketing, and companies like Foursquare allow users to find special deals while in-store where they can make an immediate purchase.

Analytics will provide the final piece of the puzzle to marketers.
Michael Becker, managing director for the Mobile Marketing Association calls analytics “the connective tissue of mobile to traditional media”. The ability to track direct sales or indirectly influenced sales through mobile is expected to grow significantly and allow marketers to monitor sales activity in real time. With increased recognition of the valuable potential of having an interactive mobile device in the hands of consumers at a time when they are requesting support from your clients will entice more marketers to find ways to leverage that capability.

MMA’s Becker concluded the article with the statement that “mobile is where the customers are. It’s as simple as that. Old world marketing was about attitudes, awareness and usage. New world marketing is putting the focus on making sure that you, as a marketer, are there at a time of a consumer’s expressed need.”

With mobile marketing, a company can respond to their customers when they need them. No matter where they are at the time.

What about your agency and clients? If 2011 is, indeed, when mobile finally grows up, are you ready to take advantage of the opportunity?