Category Archives: Consulting

July 7, 2015 · 9:18 am

Not Actionable Or Not Able?

Marketing Executives Network Group

(Photo credit: Wikipedia)

We discuss the need to measure the results of what you’re doing here on the screed fairly often.  As you’ve probably figured out by now, I’m a big believer in applying data to decision-making, especially after decisions are taken and tactics are deployed.  As it turns out, my views about that part are fairly typical within the marketing community.

In a survey of marketing executives, The Conference Board and the Marketing Executives Networking Group found 75% of the respondents in agreement with the statement that “A primary responsibility of marketing professionals is to generate data-driven insights about prospects and customers, and then create a brand or sales story based on those insights.”   I especially like that language because it is inherently customer focused.

Two other findings, however, disturbed me quite a bit.  Only 39% agreed with the statement that “Most information available from monitoring social media is not actionable” 56% agreed that “Most of the members of my marketing team are not as skilled in the use of digital marketing as they need to be.”   Those two statements are probably related and let’s think about why.

First, if you’re having trouble taking action on your social analytics, maybe you’re measuring the wrong thing.  I totally agree that “likes” is a useless number, but using conversion pixels to measure assisted conversions from social media can provide a wealth of information about how your customers come to buy.  Maybe you’re not doing sentiment analysis (that’s not baked into the standard analytics packages but readily available). You should be. Putting aside sentiment, we can focus on trending topics among your user base as well as feedback on your brands and those of your competitor.  Those are all highly actionable data points.

With respect to the second point.  If your team is lacking in some critical skill, whether it’s digital marketing, writing, or sandbox, your job as a leader is to help them improve that skill until it meets the organization’s needs.  If not getting them training is a “resource issue”, think about what it’s costing you in missed opportunities.  Flip that to the positive:  if you’re getting good results now, how much better would they be if you could agree with the statement on your team’s abilities?  Maybe that’s why the data doesn’t seem to be actionable.  Is it “not actionable” or are you just not able?

If the results of the survey resonate with you, get some help to improve your results.  I’d love to be that help but there are lots of qualified people who understand how to help your company live up to the promise that digital holds. I don’t think that dismissing it as “not actionable” is the answer.  Do you?

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July 6, 2015 · 11:26 am

All Wrong Is Right

There is a truism in gambling that you don’t need an indicator that’s right all the time to help you predict winners.  You do just as well betting using an indicator that is wrong all the time as long as you remember to bet the opposite of what the indicator predicts will happen.  Consistency and accuracy are what you’re after, and something that is wrong all the time is very accurate, albeit in the wrong direction.

12 pack of Crystal Pepsi cans

(Photo credit: Wikipedia)

I thought of that when I read about a study to be published in the Journal of Marketing Research.  It dubs certain consumers “harbingers of failure,” because they are people whose tastes lead them to buy new products that are doomed to failure on a very regular basis.  In other words, if one of these folks buys your new to the market product, kiss it goodbye:

A study of retail purchases from about 130,000 consumers at a national convenience store chain found that 13 percent of them had purchasing habits that predicted failure of a new product, defined as surviving less than three years. Specifically, half or more of the products they bought flopped.

So, customers who bought Diet Crystal Pepsi are more likely to have bought Frito Lay Lemonade. Both failed. Further, not only is their early adoption of a new product a strong signal that the product will fail, but “the more they buy, the less likely the product will succeed,” the researchers wrote.

That’s from the Chicago Tribune report on the study.  So what does this have to do with your business?  We often get way too focused on what’s a straight line; the indicators that confirm a positive relationship between what we’re doing or marketing and a growth in revenues.  What this study points out is that we need, instead, to focus on ANY indicator that has a demonstrable correlation to our success or failure no matter what form it takes.  Finding 15,000 consumers who always seem to purchase products that fail is fantastic.  While it puts you in the unenviable position of rooting for certain people NOT to buy your new product, it also allows you to take action.  In this case, the recommended course is to ask people not only whether they would buy the new product but what other products they buy — to judge whether they have mainstream tastes.

And that should help you make more winning bets!

 

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June 25, 2015 · 10:16 am

Caught In The Storm (Part 1)

I know it’s Thursday, but we’re going to begin our Foodie Friday Fun today. This is actually a two-part post about my dinner experience the other night and there are some instructive business points I took away.

I’ve been traveling this week on business. A fellow has to eat, so I had made a reservation via Open Table a week or so ago. It’s a place I had been before and liked a lot. Upon arrival, there was a note on the door that the place was closed for a private party and all non-party seating would be outside. I’m not a huge fan of dining al fresco and given there was a massive storm about 2 minutes away (no exaggeration – thunder, lightning, heavy rain, and extreme winds), outdoors was no option. There was no one from the restaurant at the host stand to provide further detail. I flagged down a waiter, explained that I had a reservation, and asked if there a table someplace away from the party where I could dine? He went to find a manager and came back with a polite but firm “no”.

Under normal circumstances, I might be a little angry and very disappointed. Given that leaving the area was a non-starter (by this time it was a deluge), I was mad. The place is in an indoor complex with other restaurants but most were fast food places that held no appeal. I ended up in a faux Irish Pub and we’ll continue the tale there in a minute.

What could have been done differently? First, if the party was booked prior to last week (I’m willing to bet it was), the times should have been blocked in Open Table. The manager must have been counting on outdoor seating being available and thought he could double-dip – have a big party and serve a bunch of covers as well.  It was not possible due to the weather, but even if it had been, anyone making a reservation (me) should have been informed they must eat outside. Second, they should have reviewed the day’s reservations as they opened up and reached out – my contact information is in the reservation – and said there was a problem. In a perfect world, they’d offer a suggestion of a comparable place and maybe even make the reservation for me. Third, someone should have been greeting the diners they were turning away. There was a table greeting the party goers but it wasn’t staffed by restaurant employees.  In short, this place put their own needs – the party, maximize revenues – ahead of the needs of their customers.  There were a few others who showed up when I did and who seemed equally disappointed.  There actually were a few tables being served outside – I didn’t stick around to see what happened to their food when the storm hit – I don’t imagine they were allowed inside by the invisible management.

As we all know, unhappy customers make a lot more noise than happy ones.  Tomorrow, I’ll tell you about what became a happy ending and more business points learned as two other businesses get it right.

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