Tag Archives: marketing

Ad agencies and marketers continue to live in a parallel universe…

09 Friday Jun 2017

Posted by in Advertising, B2B Marketing, Branding, Marketing, Social Media, Thought Leadership

≈ 2 Comments

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Research released this week by ThinkTV claimed “people working for advertising agencies are out of touch, childless, share-housing, farmers’ market-loving, workaholic gym junkies, who overestimate the impact of social media and the internet on normal Australians.”

Me thinks it’s a pretty accurate persona, to use the modern vernacular.

Of course, the consequence of the frame of reference from which agency types view the world, is how it influences their creative and media decisions in quite biased and dangerous ways.

I was on the end of this type of thinking when talking with a marketer in charge of selling “enterprise solutions” for a telco. In layman’s terms this means she flogs large phone systems to big companies through consultative selling. The reason she was asking my advice was the fact her sales were tanking and she couldn’t get leads from her digital marketing in LinkedIn and banner ads on other sites. True dear reader.

I was showing her some interactive 3D mail examples from US telcos that worked really well to generate qualified leads, particularly when supported with telephone follow-up. She stared at me bug-eyed and said “mail and telephone for B2B marketing are just not on my radar, everything’s digital these days and the agency would never go for it“.

I was taken aback, because as she spoke, I saw something flapping outside her window.

Everything’s just digital these days

The real problem with this advertising agency parallel universe is that it’s not new. The industry has lived in it for decades and not learned from its mistakes. I remember a survey in the 1980’s that demonstrated how out of touch the people who worked in advertising agencies really were.

One revelation was that agency people assumed everyone leased cars and bought their groceries on their fuel card in Shell Shops and 7/Eleven stores. Why go to Woolies?

I also had a marketing assistant at that time, who eventually became a partner in an ad agency (must have been the training). She lived in Sydney’s eastern suburbs and abjectly refused to travel west of George Street in the city. “the only time I go west is to get to the polo and then someone drives me“, she proudly exclaimed.

So here is the latest parallel universe of Adland – it goes part of the way to explaining the massive amounts of money being wasted in digital marketing channels.

The key is as follows – view the charts and weep:

  • Adland = Yellow
  • Adland’s estimate of public use = Dark blue
  • The public’s real use = Light blue

This article in yesterday’s press let the facts speak for themselves. For example, when asked to estimate how many people watch Netflix weekly, Adland said 80%. Yet apparently only 28% of “normal” people use Netflix weekly.

Gotta go now and do my weekly mentoring of young agency talent. Where’s my Tardis?

What you sell and what people buy are often two different things…

08 Thursday Jun 2017

Posted by in Advertising, Customer Service, Digital marketing, Direct Marketing, Marketing, Marketing Automation, Sales

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If you’ve studied any tertiary marketing course, you’re probably familiar with Theodore Levitt’s famous consumer insight about power drills.

“People don’t want to buy a quarter-inch drill, they want a quarter-inch hole.”

Marketers and their agencies are often guilty of not understanding the reasons why people behave the way they do. They don’t take time to talk with their customers. This lack of real communication has increased in recent years alongside the growth of marketing automation. We’ve stopped talking, we’re only computing, and lost a layer of human involvement along the way.

As I’ve written before, you’ll be surprised what you learn if you just talk with your customers.

This lack of knowledge about what motivates customers was laid bare at a tourism marketing conference in New Zealand, at which I spoke some time ago. I met Jeanette Kelly – a women who has spent years working in the hospitality industry, running her own business as well as working for others. Jeanette presented a wonderful piece of research conducted by the University of Waikato.

The accommodation and marketing managers of various hotels, motels, guest houses and the like, were asked what they thought were the most important factors influencing accommodation choices. They said, in order of priority:

  1. Staffing and accommodation service
  2. Room rate
  3. Location
  4. Facilities
  5. Marketing and Sales programmes
  6. Seasonal tourism
  7. Competition from other properties
  8. Supply and demand
  9. Events taking place in the area
  10. The general state of the national economy
  11. The state of the property

Guess what the customers listed as the most important factors influencing their accommodation choices, in order of priority?

  1. Cleanliness of the room
  2. Quality of the bath towels and wash cloths
  3. Quality of staff service
  4. Friendliness of staff service
  5. Comfort of mattress and pillow
  6. Quietness of room
  7. Well maintained furnishings
  8. On-premise car parking
  9. Overall facilities
  10. Level of security

In case you’re wondering ‘room prices’ came 17th on the list of priorities for customers. And what were the marketers smoking to believe customers care about marketing and sales programmes?

More importantly, as you can see in this case, what customers want to buy and what marketers are trying to sell, are poles apart.

So take some time to really talk with your customers and understand what motivates them. You could be pleasantly surprised by what you learn. Who knows, you might find they’re looking to buy something other than what you’re selling, or even be willing to pay more?

Have to go now. My bride says she has a surprise for me. Why is she carrying a drill?

 

Let’s connect: https://www.linkedin.com/in/malcolmauld/

Would you encourage your children to work in marketing? I doubt it…

20 Monday Mar 2017

Posted by in Advertising, Branding, Digital, Digital marketing, Email marketing, Marketing, Marketing Automation, Media, Social Media, social selling, Telemarketing

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Some of you may have noticed I haven’t blogged for about three months. I decided to take time out to observe the industry through rose coloured glasses and find some positive examples of advertising to share – regardless of channel. I might as well have tried to climb Mt Everest naked. Sorry for that vision folks, but that’s how difficult the task is has been.

Because when you stop for a moment and take a gander, the sight is really sad.

I’ve spent most of my life working in marketing in one way or another – as a business owner, running marketing departments, running agencies and educating executives and students. Never in my experience have I known the marketing industry to be so shonky, shoddy, dishonest, artificial, delusional, self-destructive and downright on the nose.

Why would anyone want their children to get a job in marketing? It’s become an embarrassment to say “I work in marketing”. You might as well say “have you met my parole officer?”

The growth in deplorables (to steal a recent popular word) is directly linked to the rise of the digital marketing industry and all the charlatans it has attracted. It seems they’re all drinking the same kool-aid and believing their “owned media” to use a digi-buzzword. Their mantra is one of the oldest on the planet “a sucker is born every minute” and it’s easy to chant when the suckers, sorry marketers, are hooked on FOMO and fashion.

Everywhere you turn there are examples. And it’s been getting worse every year. I produced this parody video in 2011 to promote an event, partly because like many, I couldn’t find any facts to support the outrageous claims about online usage by consumers.

Then this book was a best seller in 2012. I cannot find any similar publications claiming analogue channels to be so dishonest.

The first abuse of a marketing channel was the telephone and this was countered by government and industry with “do not call” registers. The problem with telemarketing was not so much dishonesty, rather it was the frequency of unsolicited calls into people’s homes.

The spiral to dishonesty started with email marketing. The scams, abuse of privacy, illegal use of email addresses, spreading of viruses and frequency of messaging, created so many problems that governments created anti-spam laws as well as data privacy legislation. Email continues to be abused, with most people now having a daily ritual of deleting unsolicited or irrelevant messages.

Here’s a quick snapshot of the marketing industry as we know it today…

The fake internet is growing so fast it will be one of the biggest online industries in less than a decade. Bob Hoffman, another lone but increasingly louder voice in the wilderness, has been very vocal about the fraud in the online advertising industry. In a number of articles, he has revealed that the percentage of clicks on online ads by robots, varies from 30% and up to 90%. Agencies have no way of telling how much “traffic” or “clicks” are by robots, as even the publishers themselves don’t really know. Yet marketers are charged for this fraud.

Then there is the “fake profile” industry. Software can now create social media accounts for anything connected to the internet. So your grandmother’s new fridge, or your sound system running from an app, will be hacked and a profile created using the device’s unique IP address.

The fraudsters then buy fake followers, they cost as little as $2.00 for a thousand, and create a fake following. The “profile” then publishes fake content, either stolen, or created by slaves with no subject expertise, working in Eastern Europe, the subcontinent, or South America. Ad space is then sold on these “fake profile” sites to computerised advertising networks. Marketer’s ads then appear on the sites, with the marketer being none the wiser.

As the system is fully computerised and rarely has a human eye to analyse it, the ability to scam the programmatic ad networks to create fake sites and earn automatic “fake revenue” is huge.

But the digital marketing industry seems uninterested in addressing the issue. One of the drivers behind this lack of interest is that very few marketers care. They never look at their digital analytics. It’s more important to be seen to be “digital” and mediocre, than to be using digital channels profitably. An Australian report suggested more than 60% of senior marketers didn’t bother looking at or using the analytical data their digital marketing generated. So they have no idea what works or what fails.

Media companies have now admitted they have been falsely charging for online advertising and are returning $millions to clients, rather than face messy legal action. Dentsu was the first to raise its guilty hand.

I have one client about to go to court with its global media agency because the agency refuses to use the client’s programmatic advertising account. The reason is simple. The moment the client gets access to the account they will discover how much they have been ripped-off over the terms of the contract to date. It seems the agency is hiding behind a clause in the contract that says bookings must be on its account. The media agency would rather lose the client’s business across the globe than be found guilty of fraud.

Facebook admits it has overstated video viewing by as much as 80%.

Sir Martin Sorrell has called out Google for unwittingly allowing advertisers to subsidise extremist terrorist sites with their advertising.

Proctor & Gamble, the largest media advertiser in the world is threatening to stop advertising online unless the industry starts to act honestly and ditches its self-interest. P&G has already reduced its Facebook spend because it resulted in an appalling loss of revenue and market share.

While French media agency Havas has followed suit and pulled all advertising from Google and the YouTube platform until they “deliver the standards we and our clients expect”.

An active Twitter user is someone who accesses their account once a month – and there are more inactive accounts than active ones. #whybotherwithtwitter

FYI Google, YouTube, Twitter, Facebook and LinkedIn remain the major publishers that continue to refuse independent auditing of their platforms. Whereas all the major analogue publishers have always participated in independent auditing as part of providing a legitimate service to advertisers.

How did it get so bad? I suspect that one reason is the fact so many people claiming to be digital marketers know nothing about marketing and just a little bit about binary coding. They have no respect for marketing, dismissing it as “just part of the process” for anyone who can use a keyboard. Or they’ve read a definitive guide and so have become a definitive expert.

I was in a meeting with a digital marketing manager who stated with authority; “a brand is just the logo taken to the next level“. But he did it with such conviction the juniors in the room took notes – I just shook my head and asked for more coffee, as it was the only drug available.

Creative thinking is not valued. Instead, you just need to Google “world’s best example of…” and then copy the ideas for your client or your brand. The result of following the “God called Google” has been a devaluing of creative talent.

And while BIG DATA is the latest trend, most marketers and their media agencies don’t analyse data. They don’t know what works and what doesn’t. They talk about data and even produce spreadsheets, but they don’t study the data to gain knowledge. Instead, they worship at the social altar of “likes” and “followers” and some nebulous term called “engagement”.

The digital channels allow you to predict the future, so you can make more money, or earn the same amount for a lower spend. They put more knowledge in the palm of marketer’s hands than any other channel. Yet nobody seems to care.

Though here’s what some major advertisers say about social channels after analysing them:

Unilever has said its social media results are about 50% as good as traditional POS advertising and other retail promotions. While Coca Cola ran its usual metrics through its social media and saw no difference in sales as a result of social content. Westfield shopping centres stopped social media advertising, as results and research revealed its customers preferred printed catalogues.

As Bob Hoffman published recently: in a study by the American Marketing Association, Deloitte and Duke University, more than 88% of marketers surveyed said they could find no measurable impact from social media marketing. While Forrester Research reported that only 0.07% of one major brand’s Facebook followers ever engage with one of its posts.

It can probably be best summed up by Coca Cola’s Head of Global Marketing, Marcos de Quinto who said; “Social media is the strategy for those who don’t have a… digital strategy.”

Yet in a recent industry debate with Mark Ritson about social media, Adam Ferrier, one of Australia’s brightest advertising talents, said “…These other two businesses – Uber and Airbnb – would not exist without social media.” I can only assume he said it because he was forced to support his side of the debate, as nothing could be further from the truth.

Uber has mainly used traditional public relations in mainstream media, plus social media to create awareness. Though as revealed here, Uber’s secret new business tool is good old-fashioned print. While Airbnb is a major user of TV advertising, email, network marketing, print and most recently talk-back radio targeting pensioners. The radio ads use pensioners to encourage other pensioners to top up their pensions by becoming an Airbnb host – strangely it says nothing about tax implications? Just as Airbnb pays no tax in our country.

So Uber and Airbnb cannot exist without analogue channels. Social channels are just a sideshow in the scheme of things.

Rumour has it, Unilever is removing the term “digital” from all marketing job titles, as they’ve finally woken up to the fact the job functions are about marketing, not about channels. After all, nobody ever called themselves a “Male Urinal Advertising Manager” just because they placed ads in the specialist channel of troughs in public and commercial toilets used by men. If you’re female and confused, ask a male colleague.

Smart marketers are realising that just sticking solely with digital marketing channels is more often than not, a mistake. For the best results, you need to promote across numerous proven channels, and run tests to determine the best ROI – just as marketers did prior to the internet.

Have to go now and prepare to teach young university marketing students. Might recommend they look for an internship at Long Bay Correctional Centre if they want a successful career…

 

Let’s connect https://www.linkedin.com/in/malcolmauld/

Real estate agent fires art director for not dressing inappropriately…

05 Monday Dec 2016

Posted by in Advertising, Branding, Customer Service, Marketing

≈ 1 Comment

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You cannot make this stuff up, so I’ll tell it to you straight.

One industry in which I’ve done lots of marketing education in the last 20+ years is the real estate industry. And as you marketers will know, real estate agents sit at the bottom of the consumer “Trust Barometer” either just above or below, advertising and marketing types, depending upon the measurement report.

Two things my proprietary research has revealed over the years:

  1. Consumers believe most real estate agents try too hard to pretend they’re something they’re not – professional – by overdressing to impress.
  2. The bigger the photo of the agent in the real estate ad, the less that consumers trust the agent.

Last week I was reminded of this by a mate of mine, who is a very talented art director. He was recently contracted by an average suburban real estate agent in Sydney, to design their ads, brochures and some digital assets.

He was to work in their back room and not have any dealings with the public. Here’s what he wore on his first day at work:

img_5277

This is a typical day’s clobber for most in the advertising and digital world. Quality casual clothes. There are no shiny suits, no completely useless neck ties, no Russian clown shoes that stick out 4 inches in front of your toes curling upwards on the end (minus the pom-pom) – in other words he did not dress like a spiv who leaves you counting your fingers after shaking hands with you.

Within an hour of starting work, the female who contracted him – no fashion princess herself – rang the recruiter and asked him to tell my mate he was inappropriately dressed for the job. She demanded he wear a suit and tie to be a back room art director designing her marketing collateral. Seriously, she did. She wanted him to dress completely inappropriately for the job he was tasked to do, because she had bad fashion sense.

The recruiter rang my mate, fearing he was working in board shorts, singlet and thongs. My mate promptly sent the recruiter a photo of himself in his fully acceptable work clobber. The recruiter’s response; “I’m speechless”.

Suffice to say my mate didn’t go back the next day.

Then a few days later my mate gets an email from GQ with a recommended look for this season. Here’s the image – it speaks for itself:

img_5276

I have friends and relatives who are very successful real estate agents. They dress comfortably, they don’t overdress. They never pretend to be anything but who they are – a real estate agent. They know that if they overdress they lose their customer’s trust, because they look like they are trying too hard and therefore by implication, have something to hide. This translates into dishonesty, just as the consumer trust barometer reveals.

So maybe if the fashion fools of real estate started dressing appropriately for the job and focused on customer service, rather than their Jimmy Choos, they might move up the consumer trust scale.

Gotta go to work now. Where are my designer stubbies?

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Connect with me: https://au.linkedin.com/in/malcolmauld

Emotion Trumps Reason – always has, always will…

10 Thursday Nov 2016

Posted by in Branding, Content Marketing, Copywriting, Customer Service, Digital marketing, Marketing

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As the world digests the US election results, the TV screens are full of experts asking questions about how it was possible Trump got elected. Using the rational side of their brains, people are trying to explain why it shouldn’t be.

Well any marketer worth their salt will tell you, one of the most fundamental principles of marketing is this – people buy emotionally and justify their purchases rationally.

If people bought rationally, Jimmy Choo probably wouldn’t exist as a brand. No rational human wants to walk around in 6-10 inch high stilettos! If we bought rationally, the most dominant recent US contribution to the planet – the Kardashians – wouldn’t have any followers.

But we always buy emotionally. Take middle age men for example. They buy a red sports car, then justify their action by claiming a great trade-in deal, free cup holders, acceleration from 0-100 in 3 seconds and lots of other vehicular facts. The real reason they buy the car, is that when they take off at the lights they feel like God and believe it will help their chances with the feminine sex. Fools.

fatgycar

Politics aside – Trump is first and foremost a promoter. He knows that to win the hearts and minds of the people, you must tap into them emotionally.

“Make America Great Again” is a powerfully emotional proposition. Particularly when Trump shouts it as “Let’s Make America Great Again”.

trump-make-america-great-again-white-2-_6022

Compare it to Hillary Clinton’s – “Stronger Together”. This is nowhere near as emotionally appealing – despite all the focus groups used to develop it. The rational discussions in those research panels can easily justify anything – though rarely do they correctly understand human nature.

stronger

So if you want to succeed with your marketing, your proposition has to be an emotional one. Which is why the Content Con Artists are leading marketers into failure.

They claim you have to stop publishing salesy copy – you just have to publish lots of vanilla content and non-sales copy, or tell your boring story in an “awesome” way and the world will flock to your door. “You no longer need to sell” is their false mantra.

Let me explain something very simple – selling is emotional. People love being sold to – and the experience is called “excellent customer service”. So ignore the Content Con Artists and go forth and sell something if you want your business to succeed.

Like many of you I am a tad nervous about the future after today’s result, but I was also nervous about the quality of both candidates.

trump-versus-clinton

Now I’ll just wait for the sales pitch from the President elect once he’s in office and won’t waste time trying to justify why he won.

All that rational thought is too emotionally draining…

 

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Connect with me: https://au.linkedin.com/in/malcolmauld

How low can marketers go…

07 Monday Nov 2016

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

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As those who work in the marketing industry know, it is in dire need of good publicity. What’s the adage about a cobbler’s shoes always in need of repair?

We’re ranked at the bottom of the list of the most trusted professions, if we make the list at all. And the recent outing of long-suspected shonky media buying agencies, has only served to confirm what the general public perceive. I’ll have more on the media buying dishonesty soon.

want-to-buy-some-used-ads

One of the reasons I’ve not posted here for a couple of months, is that I’ve been tutoring on advertising to 150 university students – in the first and final years of their degrees. To put it in perspective, I’ve read and marked 350+ assignments and presentations submitted by enthusiastic young people wanting a career in our industry.

It gave me some time to reflect and I’m a tad concerned for their future, as I’m not sure how valuable their degrees will be if they want an honest career. Here’s why:

In 1994 I ran my first e-marketing seminar, including some guest speakers from different organisations. Little did I realise at the time, how indicative it was of the industry that was to evolve to the ‘digital marketing’ one we know today.

There was a presentation from a new joint venture called NineMSN. It was between Microsoft and the owners of a television network. A lady whom I knew from the marketing industry was suddenly their e-marketing expert, despite having no expertise. Mind you, nobody had any expertise. The presentation was slick and full of graphics, charts and outlandish predictions about the information superhighway – remember those buzzwords?

Because the industry was still in gestation, the audience of marketers was extremely sceptical towards her claims – much like today’s worried marketers and business owners are about social media and content marketing.

witelie

Trust me I work in digital marketing…

 

 

 

 

 

 

 

The most powerful presentation came from an email supplier who used a whiteboard to draw a diagram of how the internet worked and how computers connected to each other. He explained what it meant and the potential for what it meant. The audience lapped it up.

And the rest as they say, is history. A whole industry was spawned. The “how to be an instant digital marketing expert” industry. Anyone can be one – just use some digi-buzzwords, imply secret knowledge, claim all things that always worked no longer do and you’re away. Even better if you publish a book denouncing all things common sense and praising unproven new marketing secrets.

Or better still, just announce “I am a digital marketing expert” and you automatically are. No qualifications necessary. For a typical example of this faux expert, you need look no further than the latest digital flavour of the month – the alleged Content Marketing experts. They give charlatans integrity.

expert

 

 

 

 

 

If it is so easy to get away with deceit to succeed, why should anyone bother with a marketing, advertising, public relations or communications degree? If all you need to do to fake expertise is Google “world’s best <insert subject> advertisement” and copy it for your brand or client, why study at all? If you can manufacture phony credentials by paying a slave in Asia or the subcontinent, to ghost write a book for you, so you can claim to be a “thought leader” why get a degree?

The digital era has sunk the marketing industry to a new low. I’ve never known marketers to be as cynical about agencies, suppliers and alleged expertise as they have in the first fifteen years of this century.

cynicism

 

 

 

 

But I live in hope, as I suspect the digital tide is turning. There is a growing chorus of intelligent voices calling out the cyber hustlers for what they are. Marketers are realising you need to use lots of media channels and continually test lots of media channels to succeed. Those who dumped proven channels for solely digital ones, are doing U-turns and going back to their roots.

They’ve realised the various digital media are not all they’re claimed to be – results are revealing the truth. If only Australia Post had maintained its investment in direct mail, as this channel is killing it for serious marketers. And of course television is still the dominant media by massive figures.

So maybe knowing about marketing strategy, branding, the time-proven principles of creating outstanding advertising, media planning and all that tertiary-trained knowledge, gained at university, will be worth investing in for a marketing career?

It better be. I’m having a ball hanging out on campus and learning from tomorrow’s ad legends – they are enthusiastic about their future careers and I’d love them to have a worthwhile industry in which to work.

mortarboard-svg

 

 

 

 

But they have to study first. Where’s that homework file…

 

 

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Let’s connect: https://au.linkedin.com/in/malcolmauld

The four essentials to developing brilliant creative ideas – and there are only four…

03 Wednesday Aug 2016

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

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I’ve lived in Melbourne twice in my life and visit most years. One thing I quickly learned was there are only four colours worn by the locals (apart from their AFL team’s). It doesn’t matter what time of year, it’s always the same four – they are:

  • Black
  • Black
  • Black
  • Black

grunge-hipster-quote

I was reminded of this when teaching the Principles of Advertising at university recently. I used an example for the students I developed years ago when training young advertising executives on the job.

There are only four essential things you need to develop brilliant creative. Without these four you will fail dismally. Yet you’d be surprised how many digi-kids don’t use them. They just use hope as a strategy for producing ideas.

So here they are dear reader – the four essentials to brilliant creative work:

  • The brief
  • The brief
  • The brief
  • The brief

Groping

Without a clear brief you are groping in the dark. You cannot work on the theory of “you’ll know it when you see it” when it comes to recognising a good idea – and usually without any connection to long term strategy or brand direction.

The obvious benefit of a written brief is that it eliminates the danger of interpretation which occurs with a verbal or no brief.

Lost+in+interpretation

Here’s another example I developed years ago for teaching briefing. I’m told it’s been used by others who also teach. Clear your mind for a few seconds. Now, what do you visualise when you read the word “rabbit?”

You obviously have an image of a rabbit in your mind’s eye? Is it white, brown, grey or chocolate? Hopping or sitting still? Nibbling on food? Being cuddled or sitting in the cross hairs of a gun sight? Maybe you’re a Monty Python fan and visualise a killer rabbit? Whatever you’re imagining, it will be very different from other people’s interpretation.

two-rabbits

A brief gives you direction. It’s your creative road map designed to save you wasting time going down dry gullies. Both David Ogilvy and his creative protege Norman Berry have been attributed to stating the creative ode: “Give me the freedom of a tight brief.”  This has nothing to do with budgie smugglers BTW.

mankini

Give me the freedom of a tight brief…

The tighter the brief the more relevant creative options you can create. Whereas a woolly brief (or no brief) sends you in too many irrelevant directions and wastes time, money and resources. That’s why a written brief, accompanied by visual stimuli remove confusion caused by interpretation.

My old boss David Ogilvy stated “search the world and steal the best.” But he meant it for inspiration, not plagiarism. Yet so many digital marketers use search engines as their creative resource. They enter “best <insert category> advertising” into Google and then copy what they can. This is not a bad idea as the starting point for inspiration, but if you don’t have a brief, how will it fit your brand? And there are limits to how often an idea or execution can be copied.

Every agency has their own version of a briefing document – if you need one, contact me and I’ll send you an example.

Then again, you could just search Google for “world’s best creative brief”…

creative brief

Hint to Telstra – Australia wants your service to work properly, Australia is not interested in your rebranding….

17 Sunday Jul 2016

Posted by in Advertising, BIG DATA, Branding, Customer Service, Digital, Digital marketing, Direct Marketing, Email marketing, Marketing, Marketing Automation

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On Friday I received an email from a computer at Telstra. It was an announcement that mainly caused me to shake my head in dismay.

The subject line reads: See our new brand before Australia does

True dear reader. Apparently rebranding is the priority of the company that specialises in regular service outages, digitally disrupting businesses from functioning, preventing kids from doing homework and generally stopping people connecting in the connected world.

Someone needs to explain to Telstra what digital disruption really means.

The disruptions have happened so often that Telstra’s compensation offer of a free data day, now falls on deaf ears. Australia (to use Telstra’s collective noun for all people and businesses in this country) is fed up – we just want our internet and phones to work. After all that’s what we pay for. Well we pay more than that – if we want Telstra to mail monthly invoices to us, because we cannot rely on their internet to deliver it by email, we have to pay north of $3 an invoice. If this was a third world country there’d be riots in the streets.

film not video

The email content states:

There is nothing more important to us than our customers, so before we share the next chapter of our brand story with the world on Sunday night, we wanted to share it with you.

On what planet do these people live? What Telstra customers have bookmarked the Telstra brand story, anxiously awaiting the next chapter for their reading pleasure? Change hands please, we customers are begging you.

The message continues with a link to a video and a subtitle “Click to watch the film“. As they say, the devil is in the details and I suspect if you click you’ll watch a video not a film.

This ignorance of small data is what Telstra is famous for, apart from digital disruptions. Here’s an email Telstra sent to me two days before Friday’s rebranding message.

The subject line reads: Malcolm, here’s a hot deal on a Samsung Galaxy S7 and Tab A 8.0

Samsung offer

Samsung 2

There’s even a free footy pass for the two codes I don’t follow – just another small data glitch…

Samsung 3

Note to Telstra: I am currently about six months into a two-year iPhone plan with you. Why would I even consider switching to a Samsung now?

The computers at Telstra must know what phone and plan I’m on – aren’t I one of those customers referred to in the rebranding message – who are supposedly more important than anything else?

This is the simplest and smallest of data – a customer’s record. How does Telstra continue to get things so wrong? Why is mediocrity such a respectable KPI at Telstra?

But hey, why get the small customer data correct when you’re doing a rebrand?

In case you are waiting with baited breath dear reader, the rebrand is all about the magic of technology. And I must say it does reflect Telstra’s technology – it magically disappears when you want to use it.

You can watch the magic of technology here, or maybe you can put the garbage out, you’re call.

As a shareholder I’m so pleased Telstra is focusing on rebranding, rather than providing a service that works when I need it to. That’s sure to keep the analysts and the customers happy.

Gotta go – need to put the garbage out.

Uber and other startups starting to smell a lot like 1999 – again…

01 Wednesday Jun 2016

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

≈ 4 Comments

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I was working in New York just prior to the first dot.con collapse. I still recall the chancers and opportunists standing on street corners with suitcases full of business cards. They were literally handing them out to any random passer-by, as the primary way to get traffic to their websites. An early form of geo-targeting by the first generation of digital marketers.

business card

The activity reeked of desperation, but hey, they were heady times. Rich veins of gold were just waiting to be tapped by the dot.con zealots.

I’ve been reminded of those times again recently. It seems the street hustlers who harass you to support a charity, are now competing for sidewalk space with the latest cyber-hustlers selling online retail and App-based services.

Hello Fresh promoters are everywhere. I mentioned them in my last post – they are major users of print distributed by mail, letterbox, inserts and face-to-face (or hand-to-hand as some now call it).

hello

Interestingly, in a few short months Hello Fresh has moved from $30 off your first order to $50 off your first order. That’s not a good trend and indicates a very competitive market with too many suppliers. Watch this space for brand consolidation in the near future. Like 1999, the predictions are that some of these home delivered food brands won’t last.

hello fresh 2

Hello Fresh

And sometimes fate steps in. Just as I was finishing editing this post there was a knock at my door and a charming lady selling Hello Fresh appeared. She even agreed to a photo for my blog. I didn’t become a customer as we are well-stocked for food. But what an innovative channel – knocking on doors to sell things. Did anyone see that digital disruption coming? Well it certainly disrupted dinner.

Hello Fresh door knocker

Helpling also uses printed inserts, brochures in letterboxes and hand-to-hand via street walkers to grow its business. Like all online retailers, they use that amazing digi-breakthrough of giving away a discount with your first purchase. This is a disruptive technique used by marketers for, hmmm, since the beginning of time!

hello 2

helpling

And this week, outside a CBD train station in Sydney, an Uber street walker shoved this in my hand.

Uber 2

Uber 1

Now who in their right-digi-mind would have thought it possible?

The disruptive taxi booking service for the App generation, is resorting to handing out printed leaflets in the streets, with discount offers, to acquire new customers?

What’s really really really really old, is new again – again:)

SP_move-along

And just to clarify other digital myths doing the rounds:

  • Uber is not the world’s biggest taxi service. It’s one of the world’s biggest taxi booking services.
  • Airbnb is not the world’s biggest hotel – it’s one of the biggest accommodation booking services.

But why let the truth get in the way of a good digi-story about the disruption industry? It seems to me, the old quote applies more and more these days – “the more things change, the more they stay the same…”

Though it is ironic that by using fashionable marketing jargon like “disruptive” and disruption” I sound sooo 2016, yet these alleged disruptive brands smell like, umm well, so 1999…

How would you treat a loyal customer of 26 years?

27 Friday May 2016

Posted by in B2B Marketing, BIG DATA, Branding, Customer Service, Digital marketing, Direct Marketing, Marketing, Marketing Automation, small data

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When I was a National Marketing Manager at TNT, I had to fly Ansett domestically because TNT owned the airline. Consequently I only flew Qantas internationally. But in 1990, I joined the Qantas Frequent Flyer programme. Last year was the 25th anniversary of my custom and last month, my 26th came and went quietly.

anniversary

I’ve flown with them every year since 1990 and spent six figures in airfares. Like many of you, I have been up and down the Qantas ladder of membership. At my peak, I was what’s known as a CIP and my membership status was something like Super Godzilla Platinum. For the uninitiated, a CIP is a Commercially Important Passenger. The CIP acronym is more valuable than VIP – it means you pay serious dollars for your seat, whereas VIPs may not pay at all for the privilege.

The reason I was a CIP, was because an over-indulgent ad agency paid me to travel the world’s busiest route – Sydney/Melbourne – on a weekly basis, sitting at the pointy end of the plane. Eventually I left that role and my travel action declined. I gradually dropped from Super Godzilla Platinum to Shiny Gold and eventually arrived at the humble Dull Silver level – though apparently it’s a Lifetime Membership. Woo Hoo.

During the time I slid down the Qantas eligibility pole for a free beer at the bar and a couple of party pies at the bain marie, I also became a Velocity member at Virgin.

pies

Lifetime Silver means no more free party pies or beer on tap…

So I ask you dear marketer, why have I not heard one word from Qantas? If you had a customer who had done business continuously with you for 26 years, wouldn’t you like to know why they’d reduced the amount of business they did with you? Wouldn’t you pick up the phone and ask?

Wouldn’t you like to know if you still get 100% of their flying wallet – to use some marketing jargon? Has your service been the problem? Does your customer now fly with your competitor?

cards

Have you left us for another?

I’m not sure how many customers you have who’ve spent continuously with you for 26 years, but I’m sure you don’t have too many. But if you did have such a customer, aren’t these the typical questions you would ask if they stopped doing business with you?

So why don’t Qantas marketers care about the people who pay their salaries? Is it because they make so much money flogging the personal data of members to FF partners, who in turn flog stuff back to said members? Is the airline business so lucrative and simple, they can afford to lose long term customers?

Is suspect the reason is simple – they rely on marketing automation. The computer tracks flight purchases and allocates ‘status’ based on transactions. And we all know how risky it is to hand over your customer service to computers. More often than not, marketing automation equates to marketing disaster.

Epic Marketing Fails Banner

There is no layer of human intelligence being applied to the BIG DATA at Qantas. Worse still they’re ignoring the small data that matters. Unless of course it’s a budgetary issue – but you’d have to be concerned if the margins in your business restrict you from calling your customers to talk with them?

I’m obviously not the most profitable customer for Qantas, but I have been a customer for more than two and a half decades. You’d think even the lamest marketer would acknowledge the fact? After all, the management could afford to pay a $90 million bonus to the staff last year? But hey, why feign interest in customers?

If you want further evidence, here’s what happened to a friend of mine. Her partner (also a friend of mine) died suddenly from DVT, following an international flight. While sorting out his estate, my grieving friend rang Qantas late on a Friday afternoon to ask what will happen to her partner’s FF points. (you need to plan this in your Will too, dear reader)

She was told to get back to them within 48 hours with the name of a relative to whom they could transfer the points. So after a discussion over the weekend, she rang Qantas on Monday, only to be told she had missed her 48 hour window! The points were to be forfeited.

Suffice to say, she gave them a piece of her mind and eventually coerced the customer service staff into allowing the points to be transferred, somewhat begrudgingly.

Gotta luv the Spirit of Oz.

So I guess I really shouldn’t be surprised about their attitude towards one customer of 26 years…