What I Hope to Learn in Orlando’s Magic ‘Data’ Kingdom

The Association of National Advertisers (ANA) inaugural 2020 Masters of Data and Technology Conference kicks off today. It will be interesting to learn how brands see themselves transformed by all the digital (and offline) data surrounding prospects and customers at this Magic Data Kingdom in Orlando.

As I get ready to embark to the Association of National Advertisers (ANA) inaugural 2020 Masters of Data and Technology Conference (beginning today), I’m very curious to listen in and learn how brands see themselves transformed by all the digital (and offline) data surrounding prospects and customers.  With CMOs telling ANA that this topic area is a strategic priority, I don’t think I’ll be disappointed this week in Orlando’s Magic Data Kingdom.

Are “they” — the brands — finding answers to these questions?

  • Do they have command of data in all the channels of customer engagement?
  • Are they deriving new sources of customer intelligence that had previously gone untapped?
  • Can they accurately map customer journeys — and their motivations along the way?
  • Are they truly able to identify customers across platforms accurately with confidence?
  • How do data science and creativity come together to make more effective advertising — and meet business real-world objectives?
  • What disruptions are shaking the foundations of B2C and B2B engagement today?
  • Are investments in data and technology paying dividends to brands and businesses in increased customer value? Do customers, too, value the data exchange?
  • Is there a talent pool in adequate to deliver data-derived, positive business outcomes? What more resources or tools might they need?
  • What impacts do barriers on open data flows — walled gardens, browser defaults, privacy legislation, “techlash” — have on relevance, competition, diversity in content and other business, economic and social concerns? How can these be managed?
  • Are “brand” people and “data” people truly becoming one in the same in marketing, and in business?

Admittedly, that’s a lot of questions — and perhaps the answers to some of these may be elusive. However, it’s the dialogue among industry peers here that will matter.

The mere emergence of this conference — “new” in the ANA lexicon — is perhaps a manifestation of where the Data & Marketing Association (acquired by ANA in 2018) hoped to achieve in its previous annual conferences and run-up to acquisition. The full promise of data-driven marketing — and “growth” in an Information Economy — can only happen when brands themselves (and, yes, their agencies and ad tech partners, too) have command of data and tech disciplines, and consumers continue to be willing partners in the exchange.

Imagination lives beyond the domain of the Magic Kingdom (where we all can take inspiration from Disney, nearby). Likewise, aspirations can be achieved. Let’s listen in and learn as ANA takes rein of this brands- and data-welcomed knowledge share. Growth is a beautiful thing.

 

How B2B CMOs Can Give Panicked Salespeople Answers Instead of Discounts

Seasoned CMOs have all experienced it. A downturn in business happens, the sales team is flailing and not hitting their numbers, and the sales EVP comes to the CMO and asks for one or more items.

Seasoned CMOs have all experienced it. A downturn in business happens, the sales team is flailing and not hitting their numbers, and the sales EVP comes to the CMO and asks for one or more items.

  • Some immediate lead generation campaigns offering specific discounts, or new discounted product bundles or free service offers to serve as door openers
  • Inexpensive customer upgrades or similar offers at a lower than normal prices
  • Mega-incentive offers for referrals or partner-sourced deals

The right response to these drop-everything-else-and-focus-on-these requests is “No … but … ”

Before we review the counter-offers to the sales VP, let’s quickly review why immediately saying “yes” is a bad idea.

Why ‘Yes’ Is a Bad Idea

If your customer value proposition rests heavily on product leadership, you will do your brand, and all future average selling price (ASP) values, a terrible disservice if you suddenly decide to offer discounts or temporary product and service bundles at lower prices.

You will be assuring the market that you are not in fact a product leader and your value proposition is more about prices. You open the door to being compared to the inferior product that owns the low-price part of the market.

There is nothing wrong with Wal-Mart’s “Save Money. Live Better.” Or its older slogan “Always Low Prices.” If that represents your primary value proposition and you have designed your firm to operate that way profitably, carry on. However, if you designed your firm to focus on product leadership, attempting to switch strategy to meet a short-term sales shortfall will fail in the long run.

In the short term, it might stimulate some deals to come in sooner at lower margins than they would have later. In the long term, you will have undermined your brand attributions and you’ll be forced to discount more often.

The same logic applies to firms whose value proposition rests heavily on customer intimacy. If you switch value propositions in a crunch, people will question your commitment. Four Seasons’ slogan “Experience Four Seasons” is never threatened by surprise discounts because hotel occupancy is low.  Nordstrom Inc. created the sub-brand “Nordstrom Rack” to address this issue: “Nordstrom Rack is the off-price retail division of Nordstrom Inc.”

Discounting a price is a sales tactic, not a marketing tactic. In B2B, it is best used in one-to-one settings with clients. When you ask marketing to broadcast it to many prospects, it becomes a strategy. Be ready.

A second major issue to saying “yes” to the sales team for these requests is that it leads them to believe that it will result in enough good deals to see you through the downturn. If, for the past three years, you have been trying to educate Sales on the idea that the buyer is in control of the buying journey, and we need to plan and nurture a pipeline of early opportunities, why would you suddenly capitulate, set aside nurturing campaigns in mid-flight, and launch a Hail Mary campaign? Don’t say “yes” to appease the sales team, if you know it will damage the business.

Why ‘No, But’ Is the Right Answer

So how do you respond? First, take the customer perspective. What is causing the downturn? Is it industrywide, or just your firm? Is it the economy? Is it in multiple regions and affecting multiple product lines? What are the customers telling you by delaying their purchases? Or are they simply buying elsewhere? In the event it is a downturn experienced by you and your competitors, there are things you can do to stimulate sales.

Assuming the customers are still buying something and simply not spending at the same level as usual, the new value proposition to the customers in the downturn must be based on why their shrinking budget is best allocated to your products and services in the downturn — that the benefits you bring will help them more in the downturn and stimulate the topline of their business more than anything else. It somehow readies them for the economic recovery and will help them outpace their competitors when the recovery starts.

Perhaps their reduction in spending is tied to their business slowing down, in which case they may have plenty of staff bandwidth to handle change, re-tool and learn new skills. This could be the perfect time to implement new products, services and processes.

Marketing does more than help the sales team sell more. We help prospects and customers buy more. We take the sales request to help them sell more and turn it into the question: “In these circumstances, how can I message customers to help them buy more?”

“No … but … ” can mean “I really don’t want to support a campaign that simply offers discounts, as that will cost us in the long run. But how about we run a campaign that highlights why our products and services have an even stronger value proposition in an economic downturn and list the benefits thereof?”

There are other times when the business is best served by demand generation marketing saying “no … but … ” For instance, when Sales wants to expand into a new market or go down market with no research or planning to determine if that is a good idea. In that case, a great CMO response is, “No, we really shouldn’t launch demand generation efforts for that market yet, but what we can do is some market research and competitive research and determine if we should put a focus there, how much it will cost to break in, do we have suitable products and services, and will it impact our current positioning and messaging, etc.”

So, under what circumstances have you said “no … but … ” to Sales? How did that work out for you?

10 Most Fascinating People in B2B Marketing From 2017

Top 10 lists are everywhere this year. I even ran across a top 10 list of top 10 lists—hilarious! My list is about the most interesting people that I came across in B2B marketing during 2017. I find them fascinating not only as interesting people, but also for making valuable contributions to our business and our world. So, meet this year’s fascinating B2B marketers.

Top 10 lists are everywhere this year. I even ran across a top 10 list of top 10 lists — hilarious! My list is about the most interesting people that I came across in B2B marketing during 2017. I find them fascinating not only as interesting people, but also for making valuable contributions to our business and our world. So, meet this year’s fascinating B2B marketers, and let’s not forget the outstanding members of my lists in 2016 and 2015.

Katie Martell

Katie Martell coined the term “on-demand marketer” to describe herself and her business. Very apt. After years of developing wildly creative PR strategies for D&B NetProspex and Aberdeen Group, she now advises companies large and small on how to create buzz in B2B. Have a look at her case for how to manage PR in the “age of the Kardashians.” The payoff? So that sales people can operate in an environment where prospects say “Oh, yes, I’ve heard of you.” We all need some of that.

Michael Brenner

Michael Brenner was SAP’s pioneer in developing the powerful Internet marketing strategy of building a website community to serve the information needs of top-of-the-funnel business buyers, to generate leads and “own the category.” His new book The Content Formula explains how you can do the same: how to find the budget, sell the concept, and measure the results. Highly recommended.

Anahi Traba

Anahi Traba takes B2B marketing to the streets, as CMO of the gigantic construction equipment company Sullair Argentina. Sullair’s headquarters in Buenos Aires is located in the funky industrial neighborhood of Barracas. Their yard crammed with forklifts and cranes is surrounded by a 7-foot concrete wall. As Anahi noticed graffiti artists tagging in the neighborhood, the idea hit her: Why not invite these neighbors to use the Sullair wall as a canvas? The project turned into a huge community relations win, with enormous press coverage, books, films, and even the birth of an in-house employee-driven photography project. “I like to combine the art and science of marketing,” she says.

John Whelan

John Whelan heads the for-profit media division of HIMSS, the global association for healthcare information and technology. I’ve served on John’s board for 5 years now, and recognize him as a master of extracting value from media properties — trade pubs, websites, databases, seminars, conferences, online training programs — and rounding up data sources across a complex organization. To his credit, he achieved the difficult milestone of moving the trade pubs to 100% digital in 2016. Bravo.

Steve Greshik

Steve Gershik, B2B consultant and thought leader, is developing some fresh thinking for B2B marketers that I find very compelling. He calls it the “funnel beyond the funnel,” namely a strategy to systematically address the opportunity to deepen existing customer relationships — an area often neglected by B2B marketers in their relentless search for leads. “Spending 80 percent of marketing investments on net new customer acquisition spells doom for B2B marketers, especially those in SaaS and other subscription businesses,” says Gershik. “It’s the post-sale experience where success lies.”

Amy Guarino

Amy Guarino and I first met in 2014, when she was heading Marketo’s effort to foment the marketing automation revolution in Japan. Hats off: Marketo is well established there now. Last year, Amy moved to her next hot trend, artificial intelligence. She’s now COO of Kyndi, a startup AI platform focused on government, healthcare and financial services. Kyndi’s hook is taking AI out of its black box, and making it “explainable,” so users really understand the reasoning behind the conclusions.

Todd Lebo

Todd Lebo began his career in marketing for newsletters and other business publications, and has cleverly migrated those skills to build Ascend2, a nifty research program that B2B marketers — mostly in martech — use for content development and lead generation. Marketers value Asend2 for their 60,000-name database of marketing professionals who answer survey questions and request the results. Journalists love it for the hard data that fuels great stories. Hint: How about someone extends this model to other B2B segments, like manufacturing and financial services?

Note to Airlines: Don’t Follow the Cable Companies’ Lead

There’s no disputing that 2017 has gotten off to a tough start for the airlines. Consumers were already frustrated with seats that seemed inspired by medieval torture devices, proliferating fees, and yield management algorithms that manage to pack the planes to the gills, forcing tense games of seat-rest elbow chicken. Oh, yes, and there was that thing about dragging a doctor off a flight, bloody and unconscious.

Peter Horst is chair of the Fusion Financial Services event later this year. Click here for more details. The event is free to qualified attendees (including travel and lodging) but seats are limited, so apply today!

There’s no disputing that 2017 has gotten off to a tough start for the airlines. Consumers were already frustrated with seats that seemed inspired by medieval torture devices, proliferating fees, and yield management algorithms that manage to pack the planes to the gills, forcing tense games of seat-rest elbow chicken. Oh, yes, and there was that thing about dragging a doctor off a flight, bloody and unconscious.

If people are comparing your airline to he people on "The Walking Dead," a TV show about a zombie apocalypse where the people are even worse than the zombies, you've made some mistakes.
One example of the reaction United received on social media after the incident.

Helping keep temperatures at a boil, social media made it so seamlessly easy to publicize every instance of crabby crew behavior, ticketing injustice, and righteous passenger indignation. Little wonder that an actual riot broke out in the Spirit Air terminal at Ft. Lauderdale’s airport after pilots expressed their displeasure with management by not showing up for work.

A Tone-Deaf Airline Industry Response

In a recent article, I argued that the soul of a brand is really the best prevention against ending up in such a tough spot — building an explicit promise and strong cultural commitment to a set of customer values. But in response to this gloomy atmosphere in their industry, Airlines for America appears to be taking a different tack.

The trade association seems to have brought back a TV ad campaign from last year. It’s an upbeat, peppy piece that stars one of those iconic, yellow-vested guys with the red flashlights and the emphatic directional gestures. With magical red flares in hand, he guides a surprised office-worker from her drab, gray cubicle to a tropical paradise, complete with the requisite flower girl, mai tai boy, and galloping horse on a beach.

The tagline is, “We connect the world”, and it emphasizes all the flights to all the destinations that airlines provide in order to help people get where they want to be.

While it’s a nice enough spot, I think it misses the mark in a few important ways. The first miss is in tone. The cheery focus on the joy of getting away from it all seems a little tin-eared in the context of the meaningful angst surrounding the topic of airline customer experience. If indeed this re-airing of the spot is an attempt to restore some good feeling, the spot risks reinforcing a perception of clueless ignorance of the present feelings of their customers. We’re emotional creatures, and the airlines’ marketing challenge is a deeply emotional one, so hitting the wrong note at this high-pitched moment seems clumsy. Effective empathy requires that marketers show they appreciate their target’s feelings.

A second miss is in the underlying insight. I passionately believe that all great marketing sits on a rigorously true, powerful insight that reveals some aspect of tension within the target’s life. In this respect, I think Airlines for America picked the wrong perch.

I’d bet my house that a core sample of the average air traveler’s brain would not reveal the most relevant insight to be, “Gosh, I just can’t wait for someone to sweep me away from all this!” A less cheerful, but more relevantly true, insight would likely be, “I’ve really come to dread getting on a plane. They just don’t seem to care about me.”

This Will Scare the !@#$% Out of You, Marketers!

Sit down for this one: 80 percent of CEOs do not trust their CMOs or marketing teams to deliver results. Ninety percent of those same CEOs DO trust their IT and finance teams, or so claims a recent study by the Fournaise Group.

Screen Shot 2016-06-13 at 10.27.11 AMSit down for this one: 80 percent of CEOs do not trust their CMOs or marketing teams to deliver results. Ninety percent of those same CEOs DO trust their IT and finance teams, or so claims a recent study by the Fournaise Group.

Its no wonder that 93 percent of marketing leads feel increasing pressure to perform along with the added frustration of feeling they do not have the resources to get the results expected from the board room. And it’s also no surprise that the average tenure for CMOs is slipping, down to 26.5 months in 2015 from 35.5 months in 2014.

Given these “scary” numbers and others and other statistics about marketing challenges today, its not far off to claim that many in our profession have become the “working scared.” Scared of the rapid pace in which technology changes, scared that IT will soon takeover their functions, scared that unrealistic expectations for ROI based on media strategies, which are tough to measure anyway, will run them out of jobs and thwart their career paths, and so on.

The fear associated with failing our CEOs, shareholders, marketing teams, ourselves and our families is resulting in a lot of knee-jerk purchasing behavior by CMOs and the like. A friend of mine who is a top sales executive for a global marketing technology company describes CMOs as reactive more than proactive, spending huge amounts on technologies they don’t understand in search of that golden and instant ROI.

While there may not be a lot of upside to working in fear, it does give us a better understanding of what drives our consumers to think and buy like they do. Just like CMOs who buy technology they don’t understand – and in many cases don’t even know what the acronym stands for – in order to avoid a painful loss, consumers seek to buy things to help them do the same, just in other areas of life. For example, consumers buy luxury labels for clothing and cars that cost so much more than functional alternatives because we fear losing social status among those we seek to impress. We buy educational products or college degrees for fear of losing a quality of life we anticipate or have now. We buy technology that will keep us connected with our jobs, our networks and our knowledge sources so we don’t have to fear being left behind. The list goes on.