Category Archives: Digital

Google MD writes hilarious job application to join Saturday Night Live…

18 Tuesday Aug 2020

Posted by in Digital, Digital marketing, SEM & SEO, Social Media

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Well folks, job applications take many forms, but this week the MD of Google in Australia obviously played her cards to pursue a career as a comedian.

How else can you explain this hilarious Open letter to Australians? It was written in response to the Australian Government deciding that Google must pay for news written by other publishers and journalists, rather than steal the news from them. Go figure – don’t be evil!

You must be aware of how this works dear reader. If you take something from someone or an organisation without their permission, then make money from what you’ve taken, you must pay that person or organisation for what you stole. It’s common sense, common courtesy and common law.

Sadly, Google appears to be just a common thief

The headline of this article was going to be: Common thief launches comedy channel, also known as Google…” but I changed my mind.

Even the most inexperienced marketing clerk knows that Google steals IP and content from legitimate publishers/journalists without paying for it, and offers it up within search results to make money from the associated advertising. It also manipulates search results for its economic benefit, so you cannot necessarily rely on organic results.

Bob Hoffman – The Ad Contrarian – has been calling out these and other unsavoury organisations/practices for years. Think Facecrook for example.

Yesterday, in what has been described as one of the funniest articles of all time, Google’s MD tried to threaten Australians with outlandish claims about loss of free search services. Google has been roundly condemned by marketers, consumers, media organisations, school children and most importantly, the ACCC (Australian Competition & Consumer Commission). The story is on all TV news bulletins and online news channels.

In addition to the letter, Google is displaying this image on its homepage on Chrome – it’s not appearing on other search engines.

The ACCC’s response to Google is here.

The reason the Google letter makes you laugh out loud is the naivety of the author to assume anybody would believe the outrageous claims it makes. Who is advising this alleged leader?

The whole situation raises a number of issues.

The first is the quality of the staff that work at Google. Why do they work in such an unethical business? Where is their moral compass? Why aren’t they calling out the organisation and suggesting it change its way? It’s not like Google is struggling – it made $4Billion in the Australian market alone in 2019.

The second is the misguided delusion many executives live under because they work for a major brand. This is particularly true in marketing roles. They believe that because they work for an established global brand, they somehow have more talent, or are better than others.

Most marketing clerks are just process functionaries – pushing paper and pixels for profit. They’re not innovative, creative or inspiring. They don’t invent new products or services or distribution channels. They just spend the advertising budget – and that’s an important function.

You consistently see the evidence at seminars, where executives with flash job titles are invited to speak. The audience anticipates something brilliant because of the job title and brand. Then reality hits – they have no secret sauce, they don’t know much more than the audience and most are rather average presenters.

But the real kicker is how even the highest paid executives know the power a letter has over all other media. Whenever there is a crisis or a desperate bid for credibility, you’ll find executives, politicians, church leaders et al, writing “an open letter” and publishing it in newspapers or online – just as the MD of Google did.

If you ever wanted evidence of the credibility and power of direct mail, look no further. But that’s another article…

Yours sincerely,

Malcolm Auld
https://www.linkedin.com/in/marketingmal/

Before Coles stops using printed catalogues they should look to Domino’s for guidance…

13 Thursday Aug 2020

Posted by in Advertising, Branding, Digital, Digital marketing, Direct Marketing, Email marketing, Marketing, Media, retail, Sales, Sales Promotion

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This week a marketing clerk at Coles made the ridiculous decision to stop using one of its most powerful media channels for retailers – printed catalogues. For international readers, unaddressed catalogues distributed via letterboxes, are one of the strongest generators of retail store and online traffic in Australia.

Coles catalogues

The reasons given by the clerk were ridiculous to say the least and naively woke – and Coles has rightly copped a backlash from both consumers and industry.

There is no basis to the Coles sustainability argument around paper usage, as explained by Kellie Northwood CEO of The Real Media Collective in her comments in Mumbrella. While Simon Lane, Country Manager at Ricoh, succinctly demonstrated how consumers are behaving, in this post yesterday.

The physical is always more powerful than the virtual as I explained here years ago. After all, would you prefer a real or a virtual kiss?

The science of the emotional power of paper over digital channels has been proven. It has to do with how direct mail for example, makes the content more real to the brain and better connected to memory by engaging with its spatial memory networks. The material generated more activity in the area of the brain associated with the integration of visual and spatial information (the left and right parietals) and the processing of information in relation to the body.

You can download Millward Brown’s research on this topic here.

Though, I’ve learned through testing, that the best results come from a combination of both print and digital channels. You need to continually test to work out the best combinations.

I suspect Coles has never run a split-run test to see what media channels work best. They’ve never isolated stores and distributed a catalogue in one catchment area and not distributed a catalogue around another store, to prove the best media usage. They certainly didn’t claim so in the announcement about their decision.

Once again the marketing clerks are letting opinions not facts govern their decisions – a sad reflection on the industry.

Which brings me to Domino’s…

Don Meij is the CEO and Managing Director of Domino’s Pizza Enterprises. He is also one of the most successful business executives in Australia and one of the highest paid. I had the privilege of interviewing him for my book a couple of years ago.

He revealed that Domino’s rushed to ‘save money’ by reducing the volume of its unaddressed letterbox marketing collateral. Domino’s distributes leaflets, booklets and other printed collateral to sell pizzas. Domino’s had launched its app and wanted to migrate customers to using the app for orders.

The result of this decision was an immediate drop in sales. So Domino’s reverted to using letterbox leaflets again. Over time, the Domino’s app has changed the way many customers place their order. Instead of using the phone to talk, they use the phone to tap. And once a customer downloads the app they use it more often to place home-delivered orders. But many still use the letterbox offers before ordering.

Domino’s realised the best marketing results come from testing and using a combination of media channels. Let the market prove the media you should use – not the marketing clerks.

Interestingly, my local pizza owner – he’s from Calabria –  had to close his dine-in service during lock-down. He doesn’t have a website. So he printed a letterbox leaflet and distributed it in his catchment area. He offered a discount for pick-up. I’ve used the offer almost weekly and love chatting with the husband and wife team as I await my order. We are after all, social creatures. He said the leaflet saved his business.

And only last month Coles biggest competitor Woolworths did a mass-distribution of its loyalty cards in a clear plastic envelope in suburban letterboxes, to attract new customers.

Woolies use letterbox distribution to sell loyalty cards

In the statement about the catalogue decision, the Coles marketer said, “we are living at a time of unprecedented societal change…” and it’s true. Consider what’s happened during the pandemic:

  • Record sales of books as people have more time to read
  • Record sales of jigsaw puzzles as families return to ‘traditional’ tactile activities
  • Record sales of vegetable seedlings and chickens as families grow their own food
  • Return to direct mail communications as the personal and physical media are more trusted during these troubled times
  • Record sales of home-delivered products – because there is no other way to buy them as stores are closed

Of course, the volume of mail and unaddressed catalogues is less than a few years ago, just as radio and TV audiences have declined and digital marketing channels struggle to be successful. As consumers, we have way too many channels to use, making it harder for marketers to instinctively know what works and what doesn’t. Hence we need to go back to basics and follow the rules.

There are two simple rules to success in marketing:

Rule 1 – Always Test

Rule 2 – See Rule 1

The pandemic has revealed some massive weaknesses in marketing – with poor quality decisions being made by unqualified marketing clerks.

Let’s hope the ‘new normal‘ brings back a semblance of commonsense and let the facts, not woke virtue signaling, drive marketing decisions…

Cut COVID-Capers, focus fully on the fundamentals you must…

29 Wednesday Apr 2020

Posted by in Advertising, Branding, Customer Service, Digital, Digital marketing, Marketing, Sales

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I’m no die-hard Star Wars fan, but was just told that International Star Wars Day is next week, so thought I’d say what Yoda would probably say in this crazy marketing world we are living in.

I’ve been asked to republish a popular article I wrote last year, mainly due to the embarrassing plethora of fake COVID marketing experts pushing their ‘expertise”  since the pandemic started. So many people are complaining about these bandwagon-jumpers.

Ever since we were placed in lock down we’ve been inundated with COVID-CRAP by ‘experts’ espousing the miracles required for marketing in a Corona virus world. In some cases in markets where people have no income and the retails stores are closed and do not provide online services, so commercial activity has stopped.

Yes, the world has temporarily changed, but if you stick to the fundamentals of marketing and do them well – which many marketers don’t do in the good times – you’ll get through this difficult time.

You might have to reconsider how you deliver or configure your product or service, or even create new products – as I explained last week. Even better, why not review all your marketing activity and start to plan for the inevitable reopening of society.

Regardless, just remember these simple rules of thumb and you’ll do OK:

The three goals of your marketing communications – and there are only three…

  • Acquire new customers
  • Get customers to spend more money with you more often
  • Get customers to keep spending with you for as long as possible.

If your marketing communications are not helping you achieve one or more of these goals, you’re probably wasting your money, regardless of the media channels or vanity metrics you use.

The two ways of marketing – and there are only two…

  • Mass marketing
  • Direct marketing

Mass Marketing – you communicate with as many consumers* as possible for the lowest media cost, to position your brand in the mind of the consumer, so they consider it when they are in the market to buy – online or offline. Generally used in broadcast, print, outdoor and some online channels. Messages are aimed at generating either a think, feel or do response.

Direct Marketing – any marketing communication delivered directly to individual consumers* or to which they respond directly to you. All responses are measured and there is always an exchange of either data or dollars – online or offline. Generally used in broadcast, mail, email, telephone, print, events, social, search, mobile and online channels. For example, give me your email address (data) and I’ll give you a newsletter, or give me your credit card details (dollars) and I’ll sell you some wine.

*Consumers is generic for both prospects and customers

The two reasons people use the internet – and there are only two…

  • To save time
  • To waste time

That’s it. You need to design your website, landing page, email, social channels, apps etc to make it easy for your customers and prospects to either save time, or to waste time, depending upon their reason for visiting.

Saving or wasting time?

There’s no such thing as a customer journey – just two contact strategies…

People don’t go on customer journeys. This is a marketing buzzword designed to make the user sound sophisticated – it’s complete bollocks. There are only two contact strategies to use, and they’re linked to the most relevant touch-points. After all, a prospect isn’t a customer until they buy something:

  • Prospect contact strategy – to generate new customers
  • Customer contact strategy – to keep profitable customers and generate referrals

Marketers determine the most appropriate touch-points to reach prospects and customers, then communicate as necessary in the most effective channels for those touch-points. These touch-points can be mapped for easier visual interpretation. This mapping is why folks mistakenly call it a journey. Map-journey, get it?

For example, a prospect may identify themselves by responding to an advertisement by telephone, downloading a white paper from a website, or at a trade show. This is the beginning of the prospect contact strategy designed to get them to either request a presentation (if required), to trial the product/service, or to buy. This can involve lots of channels, some of which can be automated.

Once the prospect becomes a customer, they join the customer contact strategy. This involves communicating with personal messages designed to create a positive customer experience, encourage loyalty, obtain referrals and generate further sales.

The customer contact strategy can also be divided into two separate executions. One execution is linked to the date the product or service is bought and includes messaging around warranty, service, renewal, upgrade and the like.

The other execution is linked to time of year and includes messaging such as monthly newsletter, seasonal offers, event invitations and more.

Obviously, the customer contact strategy uses more personal media channels including; face-to-face meetings, mail, telephone, email and social channels. And all the while, there is the 24/7 continual flow of marketing content on blogs, websites and social channels, as well as advertising.

People DON’T go on customer journeys…

The numbers that matter when budgeting…

There are a few key numbers to understand when budgeting your marketing activity:

  • Lifetime value – how much revenue you customer is worth over their lifetime of buying from you
  • Cost per lead – how much you can afford to spend to generate a qualified lead
  • Cost per sale – how much you can afford to spend to generate a sale
  • The advertising allowable – what you can afford to spend to generate a sale at either break-even or a pre-determined profit percentage

When you know how much a customer is worth, you can determine how much to spend to generate a qualified lead and therefore how much you can afford to spend to get a sale – based on conversion rates. This helps you determine the most appropriate media channels to use, as they are defined by your advertising allowable.

Remember:

Marketing creates the need, while sales fulfills the need…

Your marketing activity helps to create the need for your brand by building desire for it and reinforcing your decision after you’ve bought. Your sales people use selling techniques to fulfill the need and complete the sale.

Your direct marketing activity can both create and fulfill your prospect’s needs in a single execution. It also integrates your marketing and sales teams to ensure they both work together successfully.

So now you know, what you need to know, about you know, that thing that everyone thinks they know – marketing…even in a pandemic…

Is ‘Scotty from Marketing’ threatening the future of marketing?

21 Tuesday Jan 2020

Posted by in Advertising, Branding, Digital, Digital marketing, Marketing, Social Media

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I am very concerned dear readers. But first, for international readers of this missive, I need to give you some background.

An online newspaper – The Betoota Advocate – is one of the most refreshing and entertaining publications about daily life in Australia. You’ll hear Aussies say “How good is the Betoota Advocate?” though not, I suspect, will you hear it said by our Prime Minister.

You see, the paper has nicknamed him Scotty from Marketing – because in the PM’s earlier career, he worked in government departments that were responsible for Tourism marketing, though he never held a marketing role.

Scotty from Marketing is now a brand in itself…

It is an understatement to say the PM has not covered himself in leadership glory during the recent devastating bush fires in Australia. Consequently he is an easy target and ‘The Toot’ has done a fabulous job of branding him as Scotty from Marketing. The nickname has quickly entered the Aussie vernacular and is now used disparagingly by the PM’s political enemies and the Twitter Trolls who hate everything ‘conservative’. Consequently the hashtag #ScottyFromMarketing trends regularly whenever social media heats up.

Twitter – the home of the keyboard trolls…

But my concern is not political – it’s more important than politics. My concern is for the future of our industry.

The marketing/advertising industry is already one of the least trusted industries on the totem pole of consumer trust.

wanna buy some digital marketing??

The best selling marketing text of the past 24 months is BADMEN by Bob Hoffman, who is also one of the most in-demand marketing speakers at industry events. The book slams the disgraceful behaviour of the major digital marketing platforms such as Google, Facecrook, Instagram and Twitter, as well as the media agencies who book online advertising via programmatic platforms. It holds a mirror to the digital marketing industry and reflects a face of horrors.

Twitter is full of self-loathing for the industry, by those fed up with the cyber hustlers. Everywhere you look in the (digital) marketing landscape it’s charlatan-central. The industry is doing nothing to help improve consumer trust, let alone encourage people to start a marketing career.

Which leads me to my main concern – the decisions that final-year high school students are making about their future. If they are considering doing a marketing degree and Scotty from Marketing is perceived as the highest profile marketer in the country – what hope do we have of any young folk preferring marketing to make their mark?

Scotty and by association, marketers, are fast becoming the butt of jokes at BBQs, the pub, parties and other social gatherings. Social media is trashing marketers via Scotty. I’m concerned that university enrollments will plummet if the Toot keeps promoting Scotty from Marketing so well. The publication has done such a good job of branding the PM, it has created a serious dilemma!

I love the Betoota Advocate, but by promoting Scotty as a marketer, they may be killing off the future of marketing. I’m going to ask them to place a disclaimer against his image eg *not a real marketer.

Otherwise, the industry will have to do an advertising campaign promoting marketing as a worthwhile career and repositioning Scotty from Marketing as a just a lowly politician.

Although that is a problem in itself. Politicians are trusted more than marketers on the consumer trust rankings, so there’s no chance we could run a headline such as: “Trust me I work in marketing…”

Your thoughts please…

The humble radio was the most reliable media channel during the bush fire crisis…

14 Tuesday Jan 2020

Posted by in Digital, Media, Social Media

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The shocking bush fires in Australia are now global news. We all hope they end soon – the loss of human life, wildlife and property is unprecedented and there’s nothing you can say to make things better. While the firefighters and other volunteers cannot be praised enough.

My family stayed with friends down the south coast of NSW over Christmas and New Year, and we were surrounded by some major fires, though never in high danger. But the smoke was incredibly thick every day.

We lost power for about 36 hours from noon on New Year’s Eve. Prior to turning in, we spent the night watching the tragedy unfold across the water at Lake Conjola – the fires were huge, even in the distance. Sadly, at least one life and 89 homes were lost, though we didn’t learn this until New Year’s Day.

The last of the blue sky at 3pm on NYE…

As someone who works in the advertising/media industry, I was curious to see how the fires and news were reported in the different media channels. When we had power in our home, the television was definitely the best media for up to date information, along with local ABC radio. The media briefings were all live on TV, as were updates from the fire services headquarters.

The internet was close to useless. It worked intermittently if at all, and if you could get a signal, pages sometimes took minutes to download and sometimes didn’t at all. I posted images on Instagram, but these took up to 6 hours for the image to go live from the time I posted it. We had three different brands of phone and three different service providers at our home and all failed, due to damaged cell towers and downed lines.

Even when you could access internet news sites they were behind with the news compared to radio and TV. The fire service apps were not always helpful due to lack of internet, but they were also regularly behind real time, sometimes 14 hours behind in terms of last update. Even worse and very confusing was social media. In attempts to be helpful, people would post messages of roads open or closed, or locations of fires. These were simply their opinions, not facts.

I heard one discussion on radio where the caller referred to a social post. It had completely the opposite information from the official information at the fire services headquarters, being supplied by firefighters on site. The radio host had to counter the caller’s comments as they were creating dangerous confusion. Turns out the social post was incorrect and could have cost lives if people had believed it. Fake news even in this crisis.

On New Year’s Day when we had no power or internet, or battery-operated radio, we sat in our cars and listened to the radio for updates. It was the only reliable media that never failed due to lack of power or internet. The information was delivered in real time and was very accurate.

The humble car radio was the best media for updates…

It also involved (or should that be ‘engaged’) lots of people in the community. People called to share local updates about safe havens, petrol and food availability and other useful information. Neighbours then shared the latest radio news with each other and checked on elderly people in the street to ensure they were OK.

Interestingly, the biggest complaint among those people who were trapped by closed highways but not in danger, was quite first-world – they complained about not having internet or phones. They felt helpless without them. If we didn’t have radio we would have been completely in the dark and clueless for information.

Once the power was restored the panic buying by those who were most likely leaving the area, left little for the locals. Maslow’s most basic needs on display in an ugly manner.

Panic buying by tourists stripped shelves leaving locals without…

The one thing we all agreed, we’re getting a battery-operated radio and spare batteries to store in our homes. You never know when such old-fashioned technology might come in handy…

World’s longest infographic uses fake facts to prove infographics don’t work…

06 Friday Dec 2019

Posted by in Content Marketing, Copywriting, Digital, Digital marketing, Marketing, Social Media, social selling, Thought Leadership

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Well folks, another week and another bunch of fake facts and virtue signalling designed to create FOMO and con marketers into using the self-interested marketing miracle being touted.

And what is this week’s con? It’s an infographic promoting the virtues of video marketing (previously known as television advertising) but as advertisements produced on video now also run on digital channels, they must have a new name. Hence, video marketing.

Ironically, the promoters of video marketing, use an infographic to promote video marketing. They don’t use video to promote video marketing. Go figure?

But wait there’s more…

The video marketing infographic is roughly 21 feet long – that’s 6.5 metres – on my PC. And that’s before I ‘click to enlarge’ the screen. According to Digivizer we each scroll on average, 110 metres every day. So on its own, the world’s longest infographic is about 6% of your daily scrolling activity.

world’s longest infographic is at least 6.5 metres long…

But get this: one of the fake facts printed on the world’s longest infographic claims: “59% of executives prefer watching a video than reading the text content”.

So you have to ask the question: If the majority of the target audience allegedly doesn’t like reading, why publish the world’s longest infographic in the hope they’ll read it??

Another fake fact that will really amaze you – as it reveals human DNA has completely changed and the education problems of the world will now be easily solved. It’s this gem tucked away about one metre down the page:

“viewers retain 95% of a message when they watch it through video”

Who knew? Certainly not the TV industry, as it would never have the audacity to make such a false claim. But hallelujah, the solution to modern education and the future of the planet is video marketing.

Here we are criticising our teenagers for spending too much time watching videos on small screens. How wrong are we? Apparently, teens are learning at levels beyond the capacity of any humans in history. Homo Sapiens have evolved.

After all, according to the world’s longest infographic, our kids are retaining 95% of what they watch on video! Education problems solved! The future of the human population is assured.

Thank goodness for video marketers.

Teenagers enjoy retaining 95% of every video they view…

Fake facts are dotted throughout the world’s longest infographic. Take this amazing claim: “video consumption through mobile devices rises by 100% every year.” That’s a lot of percentages – every year…

Or this one: “72% of customers prefer learning about a product or service through a video.”

I’m not sure what to believe, as according to The Word Of Mouth Association: “77% of consumers are more likely to buy a new product when learning about it from friends or family.”

This must be what’s known as the WOM-Video Marketing Conundrum.

If you have a spare hour you can read the world’s longest infographic here.

But on a serious note…

I know video works – always has and always will – when designed well and when it reaches the right audience in the right channel.

But on all trust measurement surveys in the western world, marketing and advertising executives are the least or second-least trusted people on the planet.

Who do you trust – not advertising executives…

So if the marketing industry continues to lie to itself with self-interested promotions like the world’s longest infographic, what hope do we have of consumers ever trusting any messages we create?

These promoters of fake facts need to be removed from the industry, or at least their peers need to call them out and stop them from ruining the marketing industry’s already fragile reputation.

So I urge you, my fellow marketers, take action.

Marketers, take action…

Though I’m not holding my breath. A number of seemingly smart marketers ‘liked’ the world’s longest infographic when it was posted on social channels. Obviously, they are in the special 59% of the target audience and didn’t read it.

I’m off to change my data plan, I need more scrolling metres on my account…

FOMO, not social channel preference, drives social media usage on mobiles…

18 Friday Oct 2019

Posted by in Advertising, Digital, Digital marketing, Mobile marketing, Social Media

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Life used to be simpler. In the not-so-distant past you awoke, by whatever means, and depending upon your relationship might have had a cuddle or more intimate moment. Then you got out of bed and showered or had breakfast and prepared for the day.

Some of us were woken by radio, so we could listen to the news before, or as we started our day. Some even switched on a TV to catch the news – to see if any terrorist acts, wars, floods or famine occurred while you slept. It was a simple start to the day.

But things have become more complicated. Now it appears for many, the first thing we do when we awaken is “check our phones” – partners come a distant second on the priority list. And we’re not checking for missed phone calls, voicemail or even news.

No, we’re checking content on social media. Because as we all know, it’s the central repository for all things important. I’ve been fascinated by this behaviour and over the last four semesters teaching at university, I’ve discussed it with my students – tomorrow’s advertising and marketing legends.

We run a session in which we track ‘a day in the life of a consumer‘ in terms of the media they are exposed to throughout the day and how they interact (or ignore) with the various media channels. I’ve asked all my students “what is the first thing you do when you wake in the morning?”

Almost 100% answer “check our phones“. Some will even do so before they relieve their full and bursting bladders.

But being the curious bugger I am – I probe deeper. “What do you check on your phones” I ask? “Social media” choruses the answer.

And deeper – “what channel do you check first“, I inquire?

And this is where it gets interesting. Many don’t know what channel they check. If that sounds strange, it’s not when you think about it.

Because they are not checking channels. They are checking ‘notifications‘ – and they check the channel with the most notifications first – after all, that’s the most activity they missed while asleep. Their FOMO drives the channel they check first.

wakey, wakey, rise n shine, get out of bed it’s FOMO time…

So, if a post on Instagram has lots of activity that triggers notifications, they check that channel first. Or if they are tagged in a Facebook exchange resulting in lots of notifications, Facebook is the first port of call.

Their choice of a channel has nothing to do with the preference for the channel and everything to do with their Fear Of Missing Out on something, such as their name being tagged in a photo. After all, this is way more important than any terrorist acts, wars, floods or famine – or intimacy with their partner.

You see, notifications present a dilemma. The more notifications they have, the further behind the social curve they are – and other people might notice. OMG! Emoji. Emoji. Emoji. Emoji. #hashtag

The implication of course, though not scientific, is they ignore any ads that appear in their feed, as they rush to get back to the head of their social position. It also means marketers cannot assume people scroll through their feeds in a linear fashion, taking in all the messages that appear from friends and marketers, casually accommodating notifications.

If the consumer you are trying to reach is highly popular, they may never see your advertising – as they have no interest in anything but processing their notifications. But there is an easy way to know – test.

I suspect a few of you wise readers have occasionally been guilty of FOMO created by your phone? It’s not really a good reflection on human nature, is it? But I’m not trying to make you feel guilty – rather, reflect.

It also appears from a marketing point of view, the more you can get your customers tagging and hashtagging your message, the more chance you have of maybe, possibly, being noticed on a social channel on a mobile – maybe.

Then again, you could just call customers on their phone – that’s such a rarity these days you’re bound to beat the FOMO barrier.

Gotta go – my phone just pinged and it’s obviously vitally important that I drop everything. WOW, it’s a meeting notification. Maybe I should screenshot it and share for everyone to see…

Online sales can reduce your revenue…

22 Monday Jul 2019

Posted by in B2B Marketing, Branding, Customer Service, Digital, Digital marketing, Direct Marketing, Marketing, Marketing Automation, Sales, social selling

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A couple of years ago my agency created catalogues for an office supplies company – different catalogues for different areas of their business and different types of customers.

They had a catalogue for typical office stationery, another for bulk purchases of products delivered on pallets, and other specialty catalogues. They did some sophisticated testing, with the objective of moving clients to order via their website to reduce the dependence upon the call centre, as it took the majority of the orders. They also believed they’d make more money with online ordering.

The test results revealed some interesting insights. When the company migrated customers to online orders, they lost revenue. The average order size via the website was much less than the average order via the call centre. The reason is simple and one which any salesperson can explain.

down-decline-graph

Online sales reduced average sales value and revenue…

Once the customer was on the phone, the customer service person could upsell via questions and sell even more products than the customer might have bought if they simply went to the website. The customers who did use the website for orders, usually only bought a small number of items.

Another insight they discovered was that most customers had the catalogue with them when they called to order by phone. This gives the customer service person another way to engage with the customer, by referring to the catalogue pages and discussing them together.

Woman reading magazine at coffee shop

customers have the catalogue with them when they call…

The grim discovery was that the move to online ordering had the potential to damage the business and reduce sales. While website sales can possibly cost less to process, the average sale value was less than telephone sales.

The company had to work a delicate balance of telephone and website sales and eventually hit on a strategy of telephone follow-up to online sales. As online orders were received, the outbound telemarketers would call the customer and upsell based on the products in the online order.

This became a productive use of the call centre staff, giving them options for inbound and outbound selling. Customers appreciated the ‘service calls’ and nearly always increased their order value.

virtualStaff365_callCentres_img1

let me help you spend more money…

So don’t believe everything you hear about the marvels of digital disruption – it can damage your business rather than improve it.

The old adage continues to apply – just because you can doesn’t mean you should…

What does Uber Eats have in common with all these retail brands…

07 Friday Jun 2019

Posted by in Advertising, Digital, Digital marketing, Direct Marketing, Marketing, Media

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Regular readers will know I’ve written about this before – (see below)

But given the increased amount of television and outdoor advertising that Uber Eats is doing lately, I thought I’d revisit it. Curiously, I’ve not seen any Uber Eats advertising online…yet. (now that I’ve mentioned it, I’ll probably be chased around the web thanks to cookies)

By way of background, I’ve owned a suburban supermarket and a travel agency – in different suburbs in different centuries. For both businesses, one of the most powerful media for generating retail store traffic and sales, was unaddressed mail. I’ve also produced loads of retail catalogues and other letterbox collateral for my agency’s clients.

Yet despite the fact we live in a ‘digital world’ the letterbox is still one of the most profitable channels in which retailers can promote their wares. Truth be told, most retailers would struggle to survive if this channel was not available.

Just this week, that most uber of digital disruptors – Uber Eats – dropped an offer in my letterbox.

And so did the following brands:

  • Aldi
  • Woolworths
  • Coles
  • Big W
  • JB Hi-Fi
  • Chemist Warehouse
  • First Choice Liquor
  • Pizza Hut
  • Priceline Pharmacy
  • Telstra
  • Baby Bunting
  • Plush Furniture
  • A couple of local small businesses too

So if you’re under the delusion that we now only live in a digital world, get off your screen, go outside and check your letterbox.

You’ll be surprised what brands are using this channel – you might learn something and possibly even rethink where you spend your budget…

Gotta go and do the shopping now – where are those catalogues?

* https://themalcolmauldblog.com/2016/05/31/the-essential-media-channel-most-successful-digital-start-ups-cant-do-without/

* https://themalcolmauldblog.com/2017/05/23/uber-eats-and-airtasker-run-amazing-suburban-launches-using/

*https://themalcolmauldblog.com/2016/06/01/uber-and-others-have-it-smelling-a-lot-like-1999-again/

Nothing fails as badly, or regularly, as a marketing automation fail (continued)…

04 Tuesday Jun 2019

Posted by in Content Marketing, Copywriting, Customer Service, Digital, Digital marketing, Direct Marketing, Email marketing, Marketing, Marketing Automation, Mobile marketing, Sales

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Continuing from my article published last week about poor old Adobe’s problems, here is another example of computers getting in the way of sales because humans aren’t involved. This time it involves SMS – plus a late addition to the Adobe issues.

The sad part about this error is how easily it could have been avoided, as the perpetrator, Vintage Cellars, has my purchase history on file. Each bottle of vino I buy is linked to a loyalty card/app.

I do like my wine – in fact I enjoy both colours (red and white) in almost equal measures. Over a six year period in the Hunter Valley, I made wine as part of my membership of a wine club (now defunct). One vintage even won a trophy and my team also made a semillon in steel, not barrels, in the true Hunter Valley style.

If you’re a friend of mine, you’ll know I regard sauvignon blanc as a crime against humanity. It tastes like a batch of your neighbour’s lawn clippings, filtered by a garden hose through an old pair of your grandmother’s stockings. But that’s just my palette – others do enjoy it.

So last October, I received a text message from Zoe at Vintage Cellars – trying to flog me some sauvignon blanc:

Why I received this message is beyond comprehension. I’ve never bought sav blanc in my life, let alone from Vintage Cellars. Isn’t marketing automation messaging supposed to be linked to customer purchasing data to ensure the fabled “personalised customer experience/journey?”

I suspected Zoe was a fake customer service person, or possibly a bot, but I replied to her regardless, sharing a couple of my thoughts on sav blanc:

I assumed (wrongly) that the marvels of marketing technology would automatically process my message and stop the computers from trying to flog said sav. But unfortunately, the Vintage Cellars computers aren’t very smart. Even worse, it appears the humans in the marketing team don’t bother to check what their customers say to these computers. I know this to be true because a couple weeks ago, the computers sent me this message:

It would be funny if not so sad – well it’s sad that humans assume marketing automation works all the time, like a set-n-forget TV dinner in the microwave. It has obviously failed this time. But it’s sad for other reasons too:

Firstly, there is no way they could have missed me, given my wine buying in the last six months. I know this because I get my discount vouchers physically mailed to me each month and they are based on my household purchase history. And lately I’ve received a few vouchers – mostly linked to my bride’s champagne drinking I’m sure.

Secondly, because the message that was from Zoe, is now from “we” and is not signed off by anyone except the disclaimer.

And thirdly, it’s just bad marketing. Vintage Cellars has my data. They contacted me on a personal channel. I replied to them in the same personal channel. Yet they lie to me about missing me, are too lazy to check my sales history and are too lazy to write a decent message. It’s a bloody disgrace and enough to drive a man to drink.

But wait, there’s more – and it’s just arrived from Adobe as I type…

It’s an invitation to a webinar on mobile marketing, by the people who brought you “epic fails in marketing automation“. The image is of a human hand writing a WORD CLOUD in reverse on a glass screen. Why anybody would do this to their wrist is beyond me?

It appears the creative idea here, is to make the most prominent words the same as the topic of the webinar – enterprise, mobility, business, technology. Genius stuff. The first two sentences are:

“Your customers, your business, your market are mobile-first. But 80% of all workflows today are at least partially paper-based. This is expensive, time-consuming and not very user friendly.

Don’t get left behind! Best-in-class companies leverage digital and mobile-first workflows to eliminate clunky, manual steps, removing inefficiencies, increasing revenue growth and improving customer experiences.”

You can imagine dear reader that I may be a tad sceptical. After all, it’s the very fact that Vintage Cellars and Adobe didn’t have manual steps involving humans that caused their marketing technology failures. It was their very investment in digital marketing technology, with complete disregard for the compulsory layer of human intelligence, that cost them dearly.

The copy appears to be written by a typist, not a copywriter. After all, if your business is mobile-first (whatever that means) yet your workflow is 80% paper-based, how can your business be mobile-first? It’s obviously paper-first! The writer is contradicting themselves. This strive for marketing mediocrity is giving me a headache.

I’m off to medicate with a drink. Hmmm, red or white…