Have We Ruined 1:1 Marketing? How the Corner Grocer Became a Creepy Intruder

When Don Peppers and Martha Rogers wrote “The One to One Future: Building Relationships One Customer at a Time” in 1993, the Internet was a mere twinkle in Al Gore’s eye. But direct marketers felt excited about 1:1 marketing, and even vindicated.

When Don Peppers and Martha Rogers wrote “The One to One Future: Building Relationships One Customer at a Time” in 1993, the Internet was a mere twinkle in Al Gore’s eye. But direct marketers felt excited, and even vindicated, about the promise of a future where data-driven personalization would deliver the right message to the right customer at the right time.

But now that it’s here, are consumers happy with it?

Recently, I had the students in my direct marketing course at Rutgers School of Business read the introduction to “The Complete Database Marketer” by Arthur Hughes, which was published in 1996 when only 22% of people in the U.S. had Internet access. In the intro entitled “The Corner Grocer,” Hughes explains how database marketing can connect marketers with their customers with the same personal touch that the corner grocer had by knowing all of his customers’ names, family members, and usual purchases.

The students then had to compare the 1996 version of database marketing, as described by Hughes, with the current state of online direct/database marketing, where data collection has been enabled by e-commerce, social media, and search engine marketing.

  • What marketing innovations has technology enabled that didn’t exist before?
  • How has online marketing enhanced the concept of database marketing?
  • How have new marketing techniques and technologies changed consumer behavior?
  • How has social media affected direct/data-driven marketing for the marketer and the consumer?
  • What are some of the fundamental differences between the challenges and opportunities that today’s online marketers face vs. those that the 1996 database marketer faced?

Most of these digital natives were born after Hughes’s book was published. The students experience digital marketing every day, and they’ve seen it evolve over their lifetimes. While they concede that the targeted ads they experience are usually relevant, several of them noted that they don’t feel they have been marketed to as individuals; but rather, as a member of a group that was assigned to receive a specific digital advertisement by an algorithm. They felt that the idealized world of database marketing that Hughes described in 1996 was actually more personal than the advanced algorithmic targeting that delivers ads to their social media feeds. Hughes told the tale of Sally Warner and her relationship with the St. Paul’s Luggage Company that started with returning a warranty card and progressed with a series of direct mail and telemarketing. For example, knowing that Sally Warner had a college-bound son, St. Paul’s sent a letter suggesting luggage as a graduation gift. Hughes describes the concept of database marketing:

“Every contact with the customer will be an opportunity to collect more data about the customer. This data will be used to build knowledge about the customer. The knowledge will be used to drive strategy leading to practical, directly personal, long-term relationships, which produce sales. The sales, in turn, will yield more data which will start the process all over again.”

But Arthur couldn’t foresee the data collection capabilities of Google, Facebook, Instagram, and Amazon. Instead of the friendly corner grocer, database marketers have become a creepy intruder. How else could an ad for a product my wife had searched for at Amazon on her laptop generate an ad for the same product in my Instagram feed? (Alright, I will concede that we use the same Amazon Prime membership, but really?) We don’t have a smart speaker in the house, and I dread to think about how much creepier it could become if we did.

Recently, while visiting someone who has a Google Home assistant, I asked about the level of spying they experienced in exchange for the convenience of having voice-activated control over their household lights and appliances. They responded by asking, “Google, are you spying on us?”

The smart speaker replied, “I don’t know how to answer that question.”

Have we ruined 1:1 marketing?

Do you know how to answer that question? Tell me.

Recruiting Tech: Is a Robot Interview a Good Brand Look?

I often talk and write about the explosion of marketing technology and how it can lead companies to focus on tactical wins while ignoring or hurting long-term consumer brand development. I would also apply the same caution to recruiting technologies.

You get an email from the CEO titled, “How do we become a destination employer?” You know this is a not-so-subtle hint in reference to the last “VP of Sales” candidate who came in a T-shirt, jeans and flip flops; or perhaps it is in reference to the one before, who averted eye contact and often gave one-word responses.

To get ahead of these pitfalls, some companies are using recruiting technology platforms to filter out duds early in the process. While the platforms are indeed powerful and have the potential to add data and structure to a process that has historically been very subjective and disorganized, this is another great example of the “land of shiny objects,” where the ability to do cool things has outpaced the strategic thinking of why things should be done. In this case, we find a budding industry that has built powerful tools to help companies design interviewing and recruiting experiences that work for their needs. However, I was curious as to what impact this is having on the Employer Brand from the perspective of the candidates, and if employers are going to get burned. I spoke to a friend who came across this experience during her job search, and she had some interesting insights to share.

A Candidate’s Experience With Recruiting Tech

Her first assumption, when informed about a video interview, was that it would be over Skype. Her first shock was learning that there would not be another person on the other end; but rather a technology platform, which would ask the questions. “It took me a while to understand that my first interviewer would not be a human. This was unfamiliar territory.” After she realized that she would be talking to a technology platform, her next reaction was a flood of questions, mixed with anxiety.

  • “What questions will it ask?”
  • “How much time will I have to answer questions?”
  • “What if I don’t like my response; can I have a do-over?”
  • “Will the employer be tracking how many do-overs, pauses and breaks I take?”
  • “Will the technology be analyzing facial expressions, ticks, as part of my answer?”

While the technology provider did its best to answer her concerns and was very supportive, there were some anxieties they could not address — such as the underlying reasons why the employer would put various time limits on questions, or if they would track the number of retakes and how that information would be evaluated.

During the interview, she spent hours in a locked room judging her responses and deciding if she should do a re-take or move on. “Being a perfectionist, this was not an easy process. On top of that, the unknowns were frustrating.”

She was eventually called in for an in-person interview and discovered an employer only trying to filter out non-serious candidates before investing time and energy on the next stage. Luckily for the employer, my friend was already familiar with the company, and so her negative experience was tempered by other information. Nevertheless, the experience did not reflect well on the employer.

My Take on Recruiting Tech

Despite my friend’s account, I found clear advantages to using recruiting technology platforms and, as a data-driven business consultant, I would encourage their use. However, I would also strongly suggest that employers think about the Employer Brand and plan more carefully before deploying recruiting technology.

I often talk and write about the explosion of marketing technology and how it can lead companies to focus on tactical wins while ignoring or hurting long-term consumer brand development. I would also apply the same caution to recruiting technologies, because I believe many companies are going to hurt their Employer Brand as they become enamored with new capabilities.

The right solution should begin with a vision of the Employer Brand you are trying to build and answer some important questions, such as:

  • When building the Employer Brand using technology, what will you measure and why?
  • What are the anxieties that might be created by injecting technology into the employer-employee relationship?
  • What are the trade-offs (short-term and long-term)?

While automation may be shrinking the workforce in the next decade or two (maybe not), most expectations are that the need for creative talent will increase. This means that your Employer Brand is likely to be a critical component of how companies will recruit the best creative talent. Getting lost in the land of shiny objects is not something competitive companies will be able to afford.

Facing the Future

Recently, I participated in a panel discussion at a major e-commerce conference. The topic was about the “Future of Marketing,” and naturally, the discussion went towards the Internet of Things and other futuristic technologies. The key question was, “How should marketers adapt to these rapidly evolving technologies?”

wwwRecently, I participated in a panel discussion at a major e-commerce conference. The topic was about the “Future of Marketing,” and naturally, the discussion went toward the Internet of Things and other futuristic technologies. The key question was, “How should marketers adapt to these rapidly evolving technologies?”

In a panel discussion, where panelists are supposed to share the stage with others, there generally is no time to build up a story. Nor does the modern-day audience have patience for a long intro. We’ve got to get to the point fast. The bottom line? Technologies change, but people don’t.

Well, they actually do change over time, if you want to be technical about it, but the whole premise of predictive analytics (and the reason why it works) is that people are predictable. Hence the phrase, “Past behavior is the best predictor of future behavior.” Even the manufacturers of products aren’t sure what is going to be invented in the near future. People, on the other hand, unless there are life-altering events such as getting married or having a baby, change “relatively” slowly.

Yes, new cool things come and go, but the early adopters of technologies will remain in search of cool new things and adopt them earlier than others and at a higher price point, movie collectors will collect movies in new super-duper-ultra-high-definition formats (ask them how many times they bought the “Godfather” trilogy), conservative investors will invest more conservatively, fashionistas will care more about the latest fashion than others, and outdoors enthusiasts won’t be flipping channels on TV on weekends unless they get injured doing outdoor activities. Here, I am also describing the reasons why product-to-product type personalization (as in “Oh, you bought an outdoor item, so you must be in interested in all other outdoorsy stuff!”) is mostly annoying and impersonal to consumers.

So, if (more like “when”) some smart person – or a company – invents a new way to communicate among people, marketers should NOT create a new division for it (like a social media division, email division, etc.). If wearable devices, such as watches or eyeglasses, become really smart and ubiquitous, I am certain some marketers will simply see the new invention as a piece of real estate where they will put their so-called “personalized” ads. From a consumer’s point of view, that would be the last thing that they would want to see on their new toy. You think that a banner is annoying on a computer screen? Try a 3D image projected out of your glasses, promoting some random things.

The first thing that a marketer must face is that all of these new devices will be connected to a network for “two-way” communications, not one-way blasting. It doesn’t matter if it is a watch, eyeglasses, set-top-box or even a refrigerator. IoT is essentially about data collection, not about marketers’ new sets of billboards. And the price of spamming through such personal devices – especially ones that people will wear on their bodies – will be quite stiff. My advice? Don’t do it just because you can (refer to my earlier article “Don’t Do It Just Because You Can”).

The second bit of advice is that marketers should not forget that they are NOT in control of communication. Consumers will cut out any conversation if “they” think that the message is irrelevant, intrusive, rude or simply uncool. Millennials are in fact less likely to be resistant to sharing their information on the Net, if “they” think such action will yield some benefits for “them.” The second that they decide it is a waste of their time or not worthwhile for that small space on the phone, they will mercilessly opt out and delete the app.

So, if a marketer thinks that all of these new devices will serve “them” as part of their multichannel arsenals, well, I am sorry to inform them they are just wrong. Call it any name you want, whether it is personalization, customization, customer experience or whatever, the key is staying relevant at all times. The goal should be keeping engaged without being fired by the new generation of impatient and tech-savvy customers. In fact, marketers have lost control over this matter already; the sooner they realize that, the better off they will be.

Then there is this data part. All of these new technologies will yield more data for sure, as the very concept of “connection” is about knowing the who, when, what and where of every event, maybe with an exception for the “why” part (remember the age-old argument that correlation doesn’t automatically mean causation?). That means this Big Data thing will get even bigger. Many companies don’t even know how to deal with transactional data or digital data properly, and they barely consume basic reports out of them. Most don’t have any clue about how to convert such data assets into real profit. A few have some idea that personalization is the way of the future, but may not know how to get there.

Now multiply all of those data challenges by a million to gauge the size of the data-related issues when everything that consumes electricity will start spitting out some form data at us. Bless those electrons and charged particles; now they will soon know to how to talk to us.

How do marketers get ready for such a world? I think the way our brain works may provide a clue, though I am not getting into a new discussion regarding machine learning at this point. Our brains, basically, are programmed to know what to ignore; they simply do not process everything that we see, hear, taste or feel. Many women complain about their male partners’ selective hearing, but in the age of abundant data, analysts must learn from those seemingly simple-minded men.

Big Data are big because we don’t throw away anything. Data that are useful for one purpose could be dismissed as worthless noise for others. Basically, Big Data must get smaller to make sense for decision-makers (refer to my earlier article “Big Data Must Get Smaller”).

There are movements in Silicon Valley to build a machine that would just provide answers out of mounds of data, much like the one in a satire movie called “The Hitchhiker’s Guide to the Galaxy.” I dare you to say that even such a machine must go through some serious data selection/reduction processes first in order to provide any useful and consumable answers. Anyhow, even with such an omnipotent computer, the humans are the ones who need to ask the question wisely. If not, we will get answers like “42” for “The Question of Life, the Universe and Everything,” after 7.5 million years of calculation. That computer named Deep Thought in that movie actually pointed out that “The answer seems meaningless, because the beings who instructed it never actually knew what the question was.”

So, how are we supposed to ask questions in the age of abundant data and ubiquitous connections? Let’s remember that ultimately, marketing communication is about pleasing other human beings and treating them right. If that is too much, let’s start with not annoying them through every device and screen ever invented.

Then, how do we become more selective? Invest in analytics, and start cutting through the data before it is out of control. Why? Because consumers are in control of all these devices, and they will cut out any marketer who doesn’t conform to their standards.

We may never really know why people do what they do, but let’s start with talking to them only when necessary with a clear purpose, and offering benefits to them when we do get to talk to them. Modern-day analytics can already provide answers to such questions with available technologies. It is a matter of commitment, not technical challenges.

I really don’t think the future will be brighter just because we will have better technologies. Imagine spams through every device that you possess as a consumer. I, for one, would give up a talking refrigerator and all the benefits that come with it, if it becomes even remotely annoying to “me.”

6 Thorny Data Problems That Vex B-to-B Marketers, and How to Solve Them

B-to-B marketers are plagued by data problems. Business data is complex and fast-changing. Customers interact with us through a variety of channels, and often provide us with conflicting information. Our legacy databases are not as robust as we need. New tools and technologies emerge and must be evaluated. It’s a never-ending battle. To shed some light on B-to-B data problems, Bernice Grossman and I compiled a working list of problems and solutions. Here are some of the thorniest.

B-to-B marketers are plagued by data problems. Business data is complex and fast-changing. Customers interact with us through a variety of channels, and often provide us with conflicting information. Our legacy databases are not as robust as we need. New tools and technologies emerge and must be evaluated. It’s a never-ending battle. To shed some light on B-to-B data problems, Bernice Grossman and I compiled a working list of problems and solutions. Here are some of the thorniest.

  1. Data entered by our sales people ends up as mush. They don’t follow the rules; or there are no rules. That may be okay for the rep, but it’s not okay for the company.
    Here’s the best practice: Create a centralized data input group. Train and motivate them well. Give them objective rules to follow. Develop a simple method for testing the accuracy from this group as an ongoing practice. If this group cannot follow the rules, then the rules should be re-evaluated.

    Then, develop a very simple process by which reps pass their data to this group. Dedicate particular group members to certain reps, so the input person builds experience about rep’s behavior and communication style. The bonus: these two parties will team, build a valuable relationship, work together well, and improve data quality.

    Consider enabling the data input group with a real-time interface with a database services provider to prompt the standard company name and address. This can be an expensive, but very helpful, tool.


  2. How do I match and de-duplicate customer records effectively?
    Some approaches to consider:
    • Establish—and enforce—data governing rules to improve data entry, which will keep your matching problems under some semblance of control.
    • Find a solid software vendor with a tool specifically designed to parse, cleanse and otherwise do the matching for you. Test a few vendors to find the one that works best with your data.
    • Create a custom matching algorithm. As a place to start, ask several match/merge companies to show you examples of the results of their algorithm against your data.
  3. When data elements conflict in my house file, how do I decide which is the “truth”?
    The short answer is: by date. The most recent data is the one you should default to.

    But also keep in mind when importing data to enhance your records that appended data will always have its limitations, and is best viewed as directional, versus real “truth.” Be careful not to build targeting or segmentation processes that are primarily dependent on appended data.

    You could consider conducting an audit to validate the quality of your various append sources. (This is usually done by telephone, and it’s not cheap.) Then you can add a score to each appended element, based on its source, to manage the risk of relying on any particular element.

  4. Which corporate address should I put in my database? There’s the legal address and the financial (banking) address, which may be different. Or there may be a street address and a P.O. box address. Equifax and D&B often supply the financial address. The address to receive proxies is different from the address to receive advertising mail. How should I sort all this out?
    As a marketer, your concern is delivery. You care about a bill to and a ship to. Focus on the address where mail and packages are delivered.
  5. Measuring the impact of each touch in our omnichannel world is driving us nuts. Any ideas?
    The attribution problem has heated up recently, fueled by the rise of digital marketing. But it’s really nothing new. The traditional attribution methods of assigning the credit have long been either the first touch (the inquiry source medium) or the last touch (the channel through which the lead was either qualified or converted to a sale). Marketers are in general agreement today as to the deficiencies of either of these traditional methods.

    Digital marketers are experimenting with various approaches to the attribution problem, like weighting touches based on stage or role in the buying process, or by the type of touch—attending a two-hour seminar being weighted more heavily than a content download.

  6. How should I handle unstructured data, like social media content. All this “big data” stuff is getting bigger, and meaner, every day.
    User-generated social media content may offer valuable insights into customer needs and issues. But marketers first must think through how they will use the information to drive business results. First you must develop a use case. Then, you must develop a way to attribute the information to a record. For example, one method to allow the match is collecting multiple cookies to find an email address or other identifier. There may be situations where you want to track sentiment without attributing it to a particular customer but to a group, like large companies versus small. In either case, we suggest that you test the value of the data before you put a lot of time and money into capturing it in your marketing database.

You can find more thorny data issues and solutions in our new whitepaper, available for free download. Please submit your issues in the comments section here, and we’ll be happy to suggest some solutions.

A version of this post appeared in Biznology, the digital marketing blog.

Mobile Advertising Isn’t Just for Big Brands Anymore

The increasing use of mobile devices, mobile Web, multiple advertising platforms and the advancement of network technologies creates new opportunities in the advertising market. But the reality is mobile advertising is still new to many businesses, so it’s important to take a strategic approach to these types of mobile initiatives. Below you will find a baseline to help you get started on your new campaign

The increasing use of mobile devices, mobile Web, multiple advertising platforms and the advancement of network technologies creates new opportunities in the advertising market. According to BI Intelligence, spending on mobile advertising is set to reach $42 billion by 2018 and grow faster than all other digital marketing categories. That’s huge! But the reality is mobile advertising is still new to many businesses, so it’s important to take a strategic approach to these types of mobile initiatives.

Below you will find a baseline to help you get started on your new campaign.

  • Don’t Overthink It: In the transition from desktop to mobile, the classic banner ad has shrunk to 300×50, a tiny ad unit that does nothing to optimize the ad experience to mobile. As such, your mobile ad has only a limited window of opportunity to get through to your audience. This means that your mobile ads need to focus on a single message. Don’t try to cram too much text or any complicated images into your in-app banner ads. Keep it simple. One message at a time.
  • Understanding Leads to Personalized Experiences: Mobile ads are useful because brands can collect a lot of information about how consumers are interacting with their ads. For example, whether people are clicking on your ads (or not), and, more importantly, what are they doing beyond the click to build a deeper engagement with your brand. You can then use these events to better retarget customers and target similar customers (look-a-likes). The best thing about mobile is the ability to have at the very moment targeting: right time, right place and right device. The promise of hyper-local targeting is a huge benefit of mobile advertising.
  • Kickstart Relationships by Adding Value: One of the best ways to boost your mobile advertising campaign is to focus on adding value at every touch point. Also, with the increased focus on brand building ads, video and native ads, you can really create a dynamic and powerful customer experience. You don’t need to spend a lot of money to add value to your customers’ lives, sometimes providing useful content such as a white paper or informational video can be enough to start a relationship.
  • Test, Measure, Optimize, Repeat: One reason mobile ads don’t have to do it all is because it’s easy to create multiple versions and multivariate test them to see which works best. Unfortunately, one of the biggest mistakes marketers make is not having developers test their ads. Experiment with different offers, different creative designs, and different messages. See what works best. You might be surprised—the message your team thought was clever may not resonate with customers. Sometimes even a simple change in text, design or details of your offer can pay huge dividends. Let the performance results speak for you and allow you to make powerful data driven decisions quickly to achieve your KPIs.

Mobile advertising will never be the end all, be all for companies. What marketers need to be focused on is, “how can you make sure that your mobile ads are doing enough?” By taking a personalized approach, with one specific behavior you’re trying to impact, and testing its effectiveness, you’ll find the right way to get big results from your small screen advertising.

“Dear David … Oops, I Mean Carolyn” – Blunders in Marketing Automation

Ah, the blunders of automation. In the “old” days, when direct mail personalization was the shiny new penny, there were critical quality control procedures in place to ensure the right personalization data was being ink-jetted/lasered onto the right creative package/offer. We made sure the address data in each record matched the personalized salutation and output on the order device. Now that the email world has collided with database automation, QC efforts seem to be non-existent. As a customer, I’m insulted. As a marketer, I’m embarrassed for our entire industry.

Ah, the blunders of automation.

In the “old” days, when direct mail personalization was the shiny new penny, there were critical quality control procedures in place to ensure the right personalization data was being ink-jetted/lasered onto the right creative package/offer. We made sure the address data in each record matched the personalized salutation and output on the order device.

Now that the email world has collided with database automation, QC efforts seem to be non-existent. As a customer, I’m insulted. As a marketer, I’m embarrassed for our entire industry.

I first noticed the problem about 8 years ago when I got an email that started “Dear First Name”—it took everything I had to not choke on my morning latte. “Hmmm,” I thought, “somebody’s going to get fired for this one.”

Apparently, this “somebody” packed their bags and got a job managing email at yet another company, because their next email faux pas was an email personalized to me, but read, “Since you live in Arkansas …” Really? I don’t think I’ve ever even visited Arkansas, so either you’ve got the wrong Carolyn, or your data is really, really bad.

Or how about those sales people who look like they’re sending a 1:1 email, but the results have gone completely awry? The sender is so lazy, they’ve clearly just cut and pasted different text together—different fonts, different font colors, different font sizes.

My favorite one started, “Dear Carolyn, We get it too!” Huh? Did we meet and have a conversation about something and I dozed off?

Roger Connors, Author, Co-CEO/Co-President, Partners In Leadership at Ozprinciple.com, emails me regularly with a “Dear David” salutation. Absolutely no idea who these folks are, why I’m on their email list and why they think my name is David. And it seems Roger isn’t trusted to email by himself because his emails always come from Roger Connors and Tom Smith. Who is Tom and why won’t he let Roger send out an email alone? Perhaps because he’s never accurate with the name of his target? Nice QC supervision there, Tom.

Other organizations seem to get my name right, but miss the mark on personalization within the body copy of the email. Take this one from the Director of Retail Sales at Dixon Ticonderoga Company, who emails, “I hope to meet privately you and others to discuss the options you offer for building a non-traditional marketing strategy for .” Wow.

Then, there’s the Subject line. One of my favorites? Subject: “=?utf-8?Q??=Carolyn, Are You Right on Time, Right on Target?”

And let’s not forget those images that don’t download properly, so I’m looking at a big box with an “X” in the middle of it. Or how about links that don’t work (spinning … spinning … spinning … ) or link to a page that has nothing to do with the content in the email?

Or better yet, really examine your copy to make sure you’re not insulting anyone. The one I received this morning that reads: “Younger is better. Marketers need new technologies …To keep customers happy … To make numbers … To keep u p… Old technologies are clunky. Non-agile. Old technologies are old. Like our fellow Chi-town native, Kanye, we don’t like it unless it’s brand new.”

Hey, I may not be a spring chicken, that just rubbed me the wrong way.

So here’s a tip for all you marketers that use email in your mix: Set up your email campaign and then blast to test names in your campaign list (use a variety of email accounts so you can see how the email renders after passing through gmail, AOL and other email servers). QC it. Fix it. Send a test email again. QC it. Fix it. Send a test email again. Repeat until everything is perfect, because your first brand impression may be your last.

3 Social Media Musts to Grow Your Community

With 2011 holiday sales surpassing expectations, marketers entered 2012 with new customers and a renewed optimism. However, given the ups and downs of the past several years, now isn’t the time to rest on your laurels. 

With 2011 holiday sales surpassing expectations, marketers entered 2012 with new customers and a renewed optimism. However, given the ups and downs of the past several years, now isn’t the time to rest on your laurels. Building community will require a renewed dedication and attention across these three areas:

1. Innovation. Success and differentiation will require proactive planning and a lot of experimentation. Marketers serious about building community must be creative and unafraid of failure. Create an innovation budget is my No. 1 must. Dedicate a portion of your 2012 budget to test new ideas to support new social media programs, networks and technologies.

You’ll no doubt continue to see the emergence of new community players this year (e.g., the increasing influence of Google+ brand pages), as well as the continued expansion and maturity of others, making them viable community platforms. Set aside a portion of your budget to support the building of such platforms as well as the testing of new programs, including but not limited to location-based services, augmented reality efforts, retargeting programs and more.

2. Data analysis and measurement. Data is the holy grail. If you haven’t already integrated your social media communities into your CRM database, 2012 is the year to do so. Looking at behavior such as engagement across multiple channels (e.g., web, email and social) will be essential in indentifying key influencers and brand advocates. Build a social media measurement framework to better track and analyze the impact of your social media efforts on individual programs as well as your brand overall. Measurement frameworks should include the following:

  • awareness: reach and impressions;
  • interest: views;
  • excitement: “Likes,” comments, +1s, @mentions;
  • advocacy: shares, retweets, testimonials, endorsements;
  • conversion: attributable sales; and
  • economic value: upsell success, multiple product ownership, increase in satisfaction/likelihood to recommend, loyalty, multichannel engagement, lifetime value.

3. Splinternet expertise. With more than 37 million iPhones sold over the holidays, smartphones as well as apps have become an increasingly important part of all of our lives. The proliferation of smartphones, new technologies, and proprietary platforms and networks has given rise to what Forrester Research calls “the Splinternet.”

As a result, growing and increasing participation across your social communities via mobile platforms will need to be a key focus in 2012. Marketers and their agencies will increasingly need to hone their communication skills in order to reach and engage consumers. Creating positive user experiences will be paramount and content optimization expertise will become as important as program ideas in 2012 as consumers engage with your brand across platforms.

The key to building community in 2012 will require a bit of left and right brain thinking: A thorough analysis of who your customers are and what they want, mixed with some creative thinking and flawless execution across multiple proprietary plaforms.

How to Find the Right Mobile Marketing Vendor

With growing interest in the mobile marketing channel — particularly in the retail, charitable giving and other commerce-related sectors — it’s important to understand how to find the right vendor partner for your brand, campaign or cause. Many companies choose to partner with a vendor who offers licensed mobile marketing technologies. If you choose to go this route, here are the two key questions to consider: One, what type of vendor do you want? And two, how will you qualify your vendor?

With growing interest in the mobile marketing channel — particularly in the retail, charitable giving and other commerce-related sectors — it’s important to understand how to find the right vendor partner for your brand, campaign or cause. Many companies choose to partner with a vendor who offers licensed mobile marketing technologies. If you choose to go this route, here are the two key questions to consider: One, what type of vendor do you want? And two, how will you qualify your vendor?

Question 1: What type of vendor do you want?
Mobile marketing vendors come in all shapes and sizes. Some specialize in particular solutions, while others offer a wide range of capabilities. From application platforms to service providers, vendors may focus on any or many of eight basic pathways to mobile marketing: SMS, MMS, email, voice/IVR, proximity (Bluetooth, WiFi), mobile internet, apps and content.

Think about what type of mobile capabilities you need to create the user experience you’re seeking. Is it couponing, loyalty programs, customer care or something else? What about enabling services, like location or contactless payment? Finally, consider both short- and long-term factors surrounding the longevity of your campaign and future reinventions of it. These factors will certainly play into your decision to work with a multiservice or specialized vendor.

A resourceful place to start your search is the Mobile Marketing Association’s (MMA) online directory of members who offer mobile marketing services. These vendors are certainly up-to-speed on mobile advertising guidelines and consumer best practices. For SMS campaigns, you should also check out the Common Short Codes Administration’s “Partners” page.

Question 2: How will you qualify your vendor?
Whether you’re searching for a full-service vendor or for support to help you build it in-house, be sure to consider the following:

  • Experience. How extensive is the vendor’s mobile experience and relationships within the industry? Ask for current references and review their past campaigns.
  • Industry leadership. Make sure the vendor is a member of MMA, or at least following the industry’s best practices and standards of care. Check if it belongs to related trade associations that are unique to your business. Membership in industry organizations demonstrates that the provider is continually learning and adapting to changes.
  • Expertise. Confirm that the vendor has expertise in your desired platform, along with analytics, strategy, creative and execution. If the provider says it’s an expert in “all of them,” drill down and find out who they work with or who they’ve recently acquired — no one firm can be an expert in everything!
  • Capabilities. Does the provider already have the capabilities to deliver on what you need, or will it have to develop something special for you? If it already has the capabilities, it can show you immediately.
  • Capacity. Consider the scope and reach of your campaign. How many text messages per second/per hour can the platform handle, for example? If you’re a national brand running a national SMS campaign and it’s really successful, you better make sure the platform can handle millions of messages an hour. Ask to see reports that prove it can support your messaging traffic. Beyond total/average volume alone, be sure to ask about peak spikes, meaning the maximum number of messages supported during a specific time.
  • Disaster recovery. Is the vendor prepared for a catastrophe? What will it do if its data center loses power or if a server fails? Ask how quickly it can get back into service. If they’re industry leaders, they’ll have a redundant data center and can be back up in minutes with no loss of data.
  • Pricing. As one of the last criteria considered, keep in mind that you get what you pay for. If you pay a little amount for your platform, don’t expect a lot of service or support.

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