Tag Archives: Consulting

March 28, 2016 · 10:53 am

Home Base

I had a potential client ask me if having a website was still a big deal or if it was a good strategy to use the plethora of platforms to engage with consumers. I have a strong feeling about that, and it’s that digital homelessness is a really bad idea. Let me explain why.

I’ll deal with facts before I get into my opinion (as I’ve encouraged you folks to do many times here on the screed). Let me quote from a Digiday article of last November:

Referral traffic (desktop + mobile) to the top 30 Facebook publishers…plunged 32 percent from January to October, according to SimpleReach, a distribution analytics company. The more reliant the publisher on Facebook, the bigger the hit: Among the top 10, the drop was a steeper 42.7 percent.

Those results line up with those from social traffic tracker SimilarWeb. It found that The Huffington Post’s Facebook traffic fell 60.1 percent, Fox News’ dropped 48.2 percent, and BuzzFeed’s Facebook visits fell 40.8 percent. Across all 50, the biggest drop in traffic in the period took place from January to February, when publishers’ Facebook traffic fell an average of 75 percent. There was a smaller but also significant drop from March to April.

Maybe it was an algorithm shift, maybe it was that the publishers weren’t offering content that was click-worthy.  That proves my point – you can’t know.  If it was the former, you’re at the mercy of a gatekeeper.  I’m not singling out Facebook – Instagram just went to an algorithmically determined feed, as has Twitter.  The point is that without a home base you are at their mercy.  Why?  Because you can’t market for yourself.  “Like Us On Facebook” does a world of good for Facebook and little for you, in my opinion, because while a consumer might like you, they might never see you.

Yes, you can buy ads on any of the aforementioned platforms to drive traffic.  Is that any different from buying search ads?  I think it is.  Search is targeted differently and can be better integrate with site analytics than can any outside platforms.  Putting that aside, with so much in our business lives out of our control, why would we give up anything that can be completely ours?  Having a well-designed and maintained website – a home base on the web – is one of those things.  That’s how I see it.  You?

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February 18, 2016 · 10:53 am

Engaged With Engagement

Many of us who hang around in marketing circles often mention the word “engagement.”  It’s a term that expresses a connection between a consumer and a brand and is a highly sought after end result of our marketing activities.  There isn’t any question that we need it to happen but there does seem to be some question with respect to how it should be measured.  That was the topic covered but a survey from the CMO Council and reported by eMarketer. 

The survey asked marketers about the primary metric they used to measure engagement.  As you might expect, many of the marketers (more than a third) focused on revenue metrics.  That’s not a bad idea since there is not a heck of a lot of interpretation needed.  Either someone bought, and revenue went up, or they didn’t. Customer lifetime value, revenues per customer and overall revenue increases were the primary type of metric they used.  Then there were those who focused on things such as clicks, conversions, shares, traffic and web analytics.  These are campaign metrics, and another  30% of respondents said that these were the primary type of metrics they used.  Lead generation metrics, finance metrics, and service metrics had far fewer choices as a primary metric for measuring engagement.

Here is the thing.  As the eMarketer piece said:

Though not the most popular way to gauge successful engagement, customer service is important—and many consumers feel that good service makes them feel more positive about brands. In fact, nine in 10 internet users worldwide said so.

That gets me asking if we are trying to grow our businesses by aligning ourselves with our customers’ concerns and needs, should we not be measuring success using metrics that reflect those concerns and needs?  The above data suggests that many of us aren’t.  Sure, I get that if revenues are growing we’re probably doing something right, but maybe that’s a short-term gain based on a promotional offer or a single new product.  Have revenues grown because you’re keeping customers happy or despite the fact that they’re unhappy?  Today’s food for thought!

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January 22, 2016 · 11:13 am

Ripe

It’s Foodie Friday and this week’s post is inspired by my breakfast. My weekday breakfast almost always involves a banana, and this morning’s banana looked yummy until I actually bit in. It was not really ripe enough. The texture that too hard for my taste and the flavors hadn’t really matured. In fact, it was kind of tasteless and quite unsatisfying. The banana would definitely have benefited from another day or two of ripening. 

Despite my day not being off to a great start, a business point popped into my head. Many businesses suffer from the same phenomenon as the banana (although honestly I am not blaming the banana for being eaten too soon). We don’t let things ripen and we move overly fast. I see this with some clients who forget the original business plan when a new opportunity presents itself, losing sight of what had got the business to this point. That sort of action – moving too fast away from what was a good idea – does nothing but engender short-term thinking.

Failing to let the business ripen also means you’ve not got enough customer feedback. It takes time to scale, and even if you enjoy explosive growth, it takes time for both the business and your customers to figure out what feedback is meaningful based on repeat engagements, etc. You would much rather hear from a customer who has purchased and used your product several times that a one-time experience.

You need to ripen to assess the right size of your staff. You need to ripen to estimate what your real operating costs are and will be. To the extent scale improves product costs, you need to ripen in order to make that assessment. Finally, you need to ripen to ascertain what your real capital needs are. Early cash flow won’t be as promising as it will become down the road (hopefully) but those needs don’t present themselves right away.

I am all for moving quickly, particularly when a company is young.  Haste, however, can make waste when that speed and a failure to let things ripen means a loss of focus.  Make sense?

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