The Purpose-Driven Brand

Since the beginning of time to this very moment, we humans have been driven by purpose. Consciously and unconsciously, we seek meaning in our lives and the need to actively make a difference and leave a personal legacy of good when we move on from this existence. Jung addresses this in his Individuation process and so, too, do modern and past psychologists and researchers of human behavior drivers.

Since the beginning of time to this very moment, we humans have been driven by purpose. Consciously and unconsciously, we seek meaning in our lives and the need to actively make a difference and leave a personal legacy of good when we move on from this existence. Jung addresses this in his Individuation process and so, too, do modern and past psychologists and researchers of human behavior drivers.

Rick Warren, founder of The Saddleback Ministries, and best-selling author, discovered just how powerful our need and drive for purpose is when he wrote, “The Purpose-Driven Life: What on Earth Am I Here For?” Written in 2003, this book became the bestselling hardback non-fiction book in history, and is the second most-translated book in the world, after the Bible.

Today’s consumer seeks purpose outside of the traditional methods of religion, volunteerism, and random acts of kindness toward friends and strangers. Many of us, in fact most of us, seek to further our sense of purpose with our choices at the grocery store, online shopping carts and more. According to research by Cone Communications and Edelman, consumers in the U.S. are more likely to trust a brand that shows its direct impact on society (opens as a PDF). Others, upwards of 80 percent, are more likely to purchase from a company that can quantifiably show how it makes a difference in people’s lives—beyond just adding to the investment portfolio of a very select few.

According to the Merriam Webster dictionary, purpose is defined as:

: the reason why something is done or used
: the aim or intention of something
: the feeling of being determined to do or achieve something

Consumers are not just expecting big business to define a social purpose for the brand, they are demanding it by how they are making purchasing and loyalty choices. Edelman’s “Good Purpose Study,” released in 2012 and covering a five-year study of consumers worldwide shows:

  • 47 percent of global consumers buy brands that support a good cause atleast monthly, a 47 percent increase in just two years.
  • 72 percent of consumers wouldrecommend a brand that supports a good cause over one that doesn’t, a 39 percent increase since 2008
  • 71 percent of consumers would help a brand promote its products or services if there is a good cause behind them, representing a growth of 34 percent since 2008
  • 73 percent ofconsumers would switch brands ifa different brand of similar quality supported a good cause, which is a 9 percent increase since 2009

Another research group, Cone Communications, showed that 89 percent of consumers are likely to switch brands to one that is associated with a good cause if price and quality are similar; and 88 percent want to hear what brands are doing to have a real impact, not just that they are spending resources toward a cause.

This new state of consumerism doesn’t just show people still have a heart and soul, it is a big flag to brands in all industries to integrate CSR or Corporate Social Responsibility into their brand fiber, customer experience and marketing programs.

I interviewed William L. “Toby” Usnik, Chief CSR Officer for Christie’s in New York City, who maintains that CSR has moved far beyond writing a check and then emotionally moving on from a cause or community in need. It is about a brand’s purpose being bigger than developing its return to shareholders. Validating Usnik is a recent article published in the March 21, 2015, edition of The Economist, quoting Jack Welch of GE fame as saying “pursuing shareholder value as a strategy was ‘the dumbest idea ever.’ ” While that might be debatable, it is becoming less and less debatable, per the statistics above that show how defining a brand’s purpose in terms of the social good it delivers to communities related to its business is anything but “dumbest”—and rather, is getting smarter and smarter by the day.

Charting new territory in his role as Chief CSR Officer for Christie’s, Usnik’s first step was to define CSR as it relates to human psychology and the values of the Christie’s brand. For Usnik, it starts with building a brand’s purpose around Maslow’s hierarchy of needs and helping your constituents get closer to self-actualization, or that state of reaching a higher purpose for a greater good.

“Moving customers upwards through Maslow’s hierarchy of needs is critical to address,” says Usnik. “Customers of all ages, and especially Millennials, are moving toward a state of self-actualization and looking to define their purpose and place in communities and the world. They seek relationships with brands that are doing the same within their own value set. As a result, any business today needs to ask itself, ‘What is the impact of our activities on each other, the community, the workplace, customers and the planet?’ “

Defining your brand’s purpose and corresponding CSR efforts is the first step to developing emotional and psychological bonds with internal and external customers. When you make your CSR actionable by engaging others in your cause, you can build passion and loyalty that not only define your brand, but also your profitability. Coke defines its brand through its happiness campaign that involves delivering free Coke and other items, like sports equipment and toys, to villages around the world, and through water sanitization programs.

Tom’s Shoes, an example that is known to most as one of the pioneers in philanthropic branding, went from $9 million to $21 million in revenue in just three years by being a “purpose-driven brand” that enables people to give back to others simply by making a purchase. With a cost of goods sold of $9 and a sale price of more than $60, that is not hard to do.

At Christie’s CSR, is a big part of CRM. According to Usnik, Christie’s helps many of its customers sell high-value works of art. Many customers then donate the proceeds to social causes that align with their personal values or passions. By helping customers turn wealth into support for charitable causes, they actually create strong emotional bonds with customers, rooted in empathy and understanding—which is far more critical for securing lifetime value than points and reward programs.

In just 2014, $300 million in sales were facilitated through Christie’s that benefited non-profit organizations. Additionally, Christie’s regularly volunteers its charity auctioneers to nonprofit events. And in 2014, he estimates they’ve raised $58 million for 300 organizations.

The key to successful branding via CSR programs and purpose-driven strategies that transcend all levels of an organization and penetrate the psyche of we humans striving to define our role in this world is sincerity. Anything less simply backfires. Brands must be sincere about caring to support worthwhile causes related to their field, and they must be sincere when involving customers in charitable giving.

Concludes Usnik, “You can’t fake caring. If you pretend to care about a cause you align with, or a cause that is important to your customer, [you] won’t succeed. Caring to make a difference must be part of your culture, your drive and your passion at all levels. If you and your employees spend time and personal energy to work closely with your customers to make a difference for your selected causes and those of your customers, you are far more likely to secure long-term business and loyalty and overall profitable client relationships.”

Takeaway: The five primary drivers of human behavior, according to psychologist Jon Haidt of the University of Virginia and author of “The Happiness Hypothesis,” are centered around our innate need to nurture others, further worthy causes, make a difference in the world, align with good and help others. When brands can define themselves around these needs, we not only influence human behavior for the greater good, we can influence purchasing behavior for the long-term good of our individual brands. And per the Edelman research, 76 percent of customers around the world say its okay for brands to support good causes and make money at the same time. So define your purpose, build your plan, engage your customers and shine on!

How to Be a Good Data Scientist

I guess no one wants to be a plain “Analyst” anymore; now “Data Scientist” is the title of the day. Then again, I never thought that there was anything wrong with titles like “Secretary,” “Stewardess” or “Janitor,” either. But somehow, someone decided “Administrative Assistant” should replace “Secretary” completely, and that someone was very successful in that endeavor. So much so that, people actually get offended when they are called “Secretaries.” The same goes for “Flight Attendants.” If you want an extra bag of peanuts or the whole can of soda with ice on the side, do not dare to call any service personnel by the outdated title. The verdict is still out for the title “Janitor,” as it could be replaced by “Custodial Engineer,” “Sanitary Engineer,” “Maintenance Technician,” or anything that gives an impression that the job requirement includes a degree in engineering. No matter. When the inflation-adjusted income of salaried workers is decreasing, I guess the number of words in the job title should go up instead. Something’s got to give, right?

I guess no one wants to be a plain “Analyst” anymore; now “Data Scientist” is the title of the day. Then again, I never thought that there was anything wrong with titles like “Secretary,” “Stewardess” or “Janitor,” either. But somehow, someone decided “Administrative Assistant” should replace “Secretary” completely, and that someone was very successful in that endeavor. So much so that, people actually get offended when they are called “Secretaries.” The same goes for “Flight Attendants.” If you want an extra bag of peanuts or the whole can of soda with ice on the side, do not dare to call any service personnel by the outdated title. The verdict is still out for the title “Janitor,” as it could be replaced by “Custodial Engineer,” “Sanitary Engineer,” “Maintenance Technician,” or anything that gives an impression that the job requirement includes a degree in engineering. No matter. When the inflation-adjusted income of salaried workers is decreasing, I guess the number of words in the job title should go up instead. Something’s got to give, right?

Please do not ask me to be politically correct here. As an openly Asian person in America, I am not even sure why I should be offended when someone addresses me as an “Oriental.” Someone explained it to me a long time ago. The word is reserved for “things,” not for people. OK, then. I will be offended when someone knowingly addresses me as an Oriental, now that the memo has been out for a while. So, do me this favor and do not call me an Oriental (at least in front of my face), and I promise that I will not call anyone an “Occidental” in return.

In any case, anyone who touches data for living now wants to be called a Data Scientist. Well, the title is longer than one word, and that is a good start. Did anyone get a raise along with that title inflation? I highly doubt it. But I’ve noticed the qualifications got much longer and more complicated.

I have seen some job requirements for data scientists that call for “all” of the following qualifications:

  • A master’s degree in statistics or mathematics; able to build statistical models proficiently using R or SAS
  • Strong analytical and storytelling skills
  • Hands-on knowledge in technologies such as Hadoop, Java, Python, C++, NoSQL, etc., being able to manipulate the data any which way, independently
  • Deep knowledge in ETL (extract, transform and load) to handle data from all sources
  • Proven experience in data modeling and database design
  • Data visualization skills using whatever tools that are considered to be cool this month
  • Deep business/industry/domain knowledge
  • Superb written and verbal communication skills, being able to explain complex technical concepts in plain English
  • Etc. etc…

I actually cut this list short, as it is already becoming ridiculous. I just want to see the face of a recruiter who got the order to find super-duper candidates based on this list—at the same salary level as a Senior Statistician (another fine title). Heck, while we’re at it, why don’t we add that the candidate must look like Brad Pitt and be able to tap-dance, too? The long and the short of it is maybe some executive wanted to hire just “1” data scientist with all these skillsets, hoping to God that this mad scientist will be able to make sense out of mounds of unstructured and unorganized data all on her own, and provide business answers without even knowing what the question was in the first place.

Over the years, I have worked with many statisticians, analysts and programmers (notice that they are all one-word titles), dealing with large, small, clean, dirty and, at times, really dirty data (hence the title of this series, “Big Data, Small Data, Clean Data, Messy Data”). And navigating through all those data has always been a team effort.

Yes, there are some exceptional musicians who can write music and lyrics, sing really well, play all instruments, program sequencers, record, mix, produce and sell music—all on their own. But if you insist that only such geniuses can produce music, there won’t be much to listen to in this world. Even Stevie Wonder, who can write and sing, and play keyboards, drums and harmonicas, had close to 100 names on the album credits in his heyday. Yes, the digital revolution changed the music scene as much as the data industry in terms of team sizes, but both aren’t and shouldn’t be one-man shows.

So, if being a “Data Scientist” means being a super businessman/analyst/statistician who can program, build models, write, present and sell, we should all just give up searching for one in the near future within your budget. Literally, we may be able to find a few qualified candidates in the job market on a national level. Too bad that every industry report says we need tens of thousands of them, right now.

Conversely, if it is just a bloated new title for good old data analysts with some knowledge in statistical applications and the ability to understand business needs—yeah, sure. Why not? I know plenty of those people, and we can groom more of them. And I don’t even mind giving them new long-winded titles that are suitable for the modern business world and peer groups.

I have been in the data business for a long time. And even before the datasets became really large, I have always maintained the following division of labor when dealing with complex data projects involving advanced analytics:

  • Business Analysts
  • Programmers/Developers
  • Statistical Analysts

The reason is very simple: It is extremely difficult to be a master-level expert in just one of these areas. Out of hundreds of statisticians who I’ve worked with, I can count only a handful of people who even “tried” to venture into the business side. Of those, even fewer successfully transformed themselves into businesspeople, and they are now business owners of consulting practices or in positions with “Chief” in their titles (Chief Data Officer or Chief Analytics Officer being the title du jour).

On the other side of the spectrum, less than a 10th of decent statisticians are also good at coding to manipulate complex data. But even they are mostly not good enough to be completely independent from professional programmers or developers. The reality is, most statisticians are not very good at setting up workable samples out of really messy data. Simply put, handling data and developing analytical frameworks or models call for different mindsets on a professional level.

The Business Analysts, I think, are the closest to the modern-day Data Scientists; albeit that the ones in the past were less so technicians, due to available toolsets back then. Nevertheless, granted that it is much easier to teach business aspects to statisticians or developers than to convert businesspeople or marketers into coders (no offense, but true), many of these “in-between” people—between the marketing world and technology world, for example—are rooted in the technology world (myself included) or at least have a deep understanding of it.

At times labeled as Research Analysts, they are the folks who would:

  • Understand the business requirements and issues at hand
  • Prescribe suitable solutions
  • Develop tangible analytical projects
  • Perform data audits
  • Procure data from various sources
  • Translate business requirements into technical specifications
  • Oversee the progress as project managers
  • Create reports and visual presentations
  • Interpret the results and create “stories”
  • And present the findings and recommended next steps to decision-makers

Sounds complex? You bet it is. And I didn’t even list all the job functions here. And to do this job effectively, these Business/Research Analysts (or Data Scientists) must understand the technical limitations of all related areas, including database, statistics, and general analytics, as well as industry verticals, uniqueness of business models and campaign/transaction channels. But they do not have to be full-blown statisticians or coders; they just have to know what they want and how to ask for it clearly. If they know how to code as well, great. All the more power to them. But that would be like a cherry on top, as the business mindset should be in front of everything.

So, now that the data are bigger and more complex than ever in human history, are we about to combine all aspects of data and analytics business and find people who are good at absolutely everything? Yes, various toolsets made some aspects of analysts’ lives easier and simpler, but not enough to get rid of the partitions between positions completely. Some third basemen may be able to pitch, too. But they wouldn’t go on the mound as starting pitchers—not on a professional level. And yes, analysts who advance up through the corporate and socioeconomic ladder are the ones who successfully crossed the boundaries. But we shouldn’t wait for the ones who are masters of everything. Like I said, even Stevie Wonder needs great sound engineers.

Then, what would be a good path to find Data Scientists in the existing pool of talent? I have been using the following four evaluation criteria to identify individuals with upward mobility in the technology world for a long time. Like I said, it is a lot simpler and easier to teach business aspects to people with technical backgrounds than the other way around.

So let’s start with the techies. These are the qualities we need to look for:

1. Skills: When it comes to the technical aspect of it, the skillset is the most important criterion. Generally a person has it, or doesn’t have it. If we are talking about a developer, how good is he? Can he develop a database without wasting time? A good coder is not just a little faster than mediocre ones; he can be 10 to 20 times faster. I am talking about the ones who don’t have to look through some manual or the Internet every five minutes, but the ones who just know all the shortcuts and options. The same goes for statistical analysts. How well is she versed in all the statistical techniques? Or is she a one-trick pony? How is her track record? Are her models performing in the market for a prolonged time? The thing about statistical work is that time is the ultimate test; we eventually get to find out how well the prediction holds up in the real world.

2. Attitude: This is a very important aspect, as many techies are locked up in their own little world. Many are socially awkward, like characters in Dilbert or “Big Bang Theory,” and most much prefer to deal with the machines (where things are clean-cut binary) than people (well, humans can be really annoying). Some do not work well with others and do not know how to compromise at all, as they do not know how to look at the world from a different perspective. And there are a lot of lazy ones. Yes, lazy programmers are the ones who are more motivated to automate processes (primarily to support their laissez faire lifestyle), but the ones who blow the deadlines all the time are just too much trouble for the team. In short, a genius with a really bad attitude won’t be able to move to the business or the management side, regardless of the IQ score.

3. Communication: Many technical folks are not good at written or verbal communications. I am not talking about just the ones who are foreign-born (like me), even though most technically oriented departments are full of them. The issue is many technical people (yes, even the ones who were born and raised in the U.S., speaking English) do not communicate with the rest of the world very well. Many can’t explain anything without using technical jargon, nor can they summarize messages to decision-makers. Businesspeople don’t need to hear the life story about how complex the project was or how messy the data sets were. Conversely, many techies do not understand marketers or businesspeople who speak plain English. Some fail to grasp the concept that human beings are not robots, and most mortals often fail to communicate every sentence as a logical expression. When a marketer says “Omit customers in New York and New Jersey from the next campaign,” the coder on the receiving end shouldn’t take that as a proper Boolean logic. Yes, obviously a state cannot be New York “and” New Jersey at the same time. But most humans don’t (or can’t) distinguish such differences. Seriously, I’ve seen some developers who refuse to work with people whose command of logical expressions aren’t at the level of Mr. Spock. That’s the primary reason we need business analysts or project managers who work as translators between these two worlds. And obviously, the translators should be able to speak both languages fluently.

4. Business Understanding: Granted, the candidates in question are qualified in terms of criteria one through three. Their eagerness to understand the ultimate business goals behind analytical projects would truly set them apart from the rest on the path to become a data scientist. As I mentioned previously, many technically oriented people do not really care much about the business side of the deal, or even have slight curiosity about it. What is the business model of the company for which they are working? How do they make money? What are the major business concerns? What are the long- and short-term business goals of their clients? Why do they lose sleep at night? Before complaining about incomplete data, why are the databases so messy? How are the data being collected? What does all this data mean for their bottom line? Can you bring up the “So what?” question after a great scientific finding? And ultimately, how will we make our clients look good in front of “their” bosses? When we deal with technical issues, we often find ourselves at a crossroad. Picking the right path (or a path with the least amount of downsides) is not just an IT decision, but more of a business decision. The person who has a more holistic view of the world, without a doubt, would make a better decision—even for a minor difference in a small feature, in terms of programming. Unfortunately, it is very difficult to find such IT people who have a balanced view.

And that is the punchline. We want data scientists who have the right balance of business and technical acumen—not just jacks of all trades who can do all the IT and analytical work all by themselves. Just like business strategy isn’t solely set by a data strategist, data projects aren’t done by one super techie. What we need are business analysts or data scientists who truly “get” the business goals and who will be able to translate them into functional technical specifications, with an understanding of all the limitations of each technology piece that is to be employed—which is quite different from being able to do it all.

If the career path for a data scientist ultimately leads to Chief Data Officer or Chief Analytics Officer, it is important for the candidates to understand that such “chief” titles are all about the business, not the IT. As soon as a CDO, CAO or CTO start representing technology before business, that organization is doomed. They should be executives who understand the technology and employ it to increase profit and efficiency for the whole company. Movie directors don’t necessarily write scripts, hold the cameras, develop special effects or act out scenes. But they understand all aspects of the movie-making process and put all the resources together to create films that they envision. As soon as a director falls too deep into just one aspect, such as special effects, the resultant movie quickly becomes an unwatchable bore. Data business is the same way.

So what is my advice for young and upcoming data scientists? Master the basics and be a specialist first. Pick a field that fits your aptitude, whether it be programming, software development, mathematics or statistics, and try to be really good at it. But remain curious about other related IT fields.

Then travel the world. Watch lots of movies. Read a variety of books. Not just technical books, but books about psychology, sociology, philosophy, science, economics and marketing, as well. This data business is inevitably related to activities that generate revenue for some organization. Try to understand the business ecosystem, not just technical systems. As marketing will always be a big part of the Big Data phenomenon, be an educated consumer first. Then look at advertisements and marketing campaigns from the promotor’s point of view, not just from an annoyed consumer’s view. Be an informed buyer through all available channels, online or offline. Then imagine how the world will be different in the future, and how a simple concept of a monetary transaction will transform along with other technical advances, which will certainly not stop at ApplePay. All of those changes will turn into business opportunities for people who understand data. If you see some real opportunities, try to imagine how you would create a startup company around them. You will quickly realize answering technical challenges is not even the half of building a viable business model.

If you are already one of those data scientists, live up to that title and be solution-oriented, not technology-oriented. Don’t be a slave to technologies, or be whom we sometimes address as a “data plumber” (who just moves data from one place to another). Be a master who wields data and technology to provide useful answers. And most importantly, don’t be evil (like Google says), and never do things just because you can. Always think about the social consequences, as actions based on data and technology affect real people, often negatively (more on this subject in future article). If you want to ride this Big Data wave for the foreseeable future, try not to annoy people who may not understand all the ins and outs of the data business. Don’t be the guy who spoils it for everyone else in the industry.

A while back, I started to see the unemployment rate as a rate of people who are being left behind during the progress (if we consider technical innovations as progress). Every evolutionary stage since the Industrial Revolution created gaps between supply and demand of new skillsets required for the new world. And this wave is not going to be an exception. It is unfortunate that, in this age of a high unemployment rate, we have such hard times finding good candidates for high tech positions. On one side, there are too many people who were educated under the old paradigm. And on the other side, there are too few people who can wield new technologies and apply them to satisfy business needs. If this new title “Data Scientist” means the latter, then yes. We need more of them, for sure. But we all need to be more realistic about how to groom them, as it would take a village to do so. And if we can’t even agree on what the job description for a data scientist should be, we will need lots of luck developing armies of them.

Take Along, Share and Simplify: Essential Verbs to Enhance Your Brand Strategy in 2015, Part 2

Back in November, I shared with you two essential verbs to enhance your brand strategy: amaze and respect. Now I have three more verbs to share with you for your 2015 brand plans:

Back in November, I shared with you two essential verbs to enhance your brand strategy: amaze and respect. Now I have three more verbs to share with you for your 2015 brand plans:

Take Along
Pomegranates have always had a rough reputation in the world of fruit: How do you eat them? How do you peel or cut into them without getting that staining red juice all over the place? And, once you figure that out, how do you remove all those beautiful ruby seeds (actually called arils) out easily? Pomegranates are the antithesis of take-it-everywhere, eat-on-the-run bananas.

But 10 years ago, the folks at POM Wonderful took it upon themselves to make pomegranates more accessible to Americans and introduced the nutritional wonders of pomegranate juice in a big way to our health-obsessed country. Customers found POM Wonderful Juice delicious to drink, fun to hold and loved the antioxidant boost. Sales soared. Pomegranate juice became a part of healthy lifestyles.

Over time, the brand builders at POM took on this fresh fruit’s primary pain point among customers—extracting the seeds without a huge mess. There had been a brief instruction on the website, but then POM took it a step further—it was simply done for customers! POM introduced conveniently packaged arils in easy-to-tote cups so customers can use them in salads or just pop them in your mouth like you might raisins. Voila! Ease, convenience, antioxidants … all portable.

Brands that gain the coveted access into their customers’ daily lives do so by creating products that are in some way meaningful and easy to use. This “take along” effect (also mastered by others quite successfully like Starbucks and Republic of Tea with their traveler’s tins of teas) keeps a brand top of mind. Is there any way this “take along” verb would help your brand become a bigger part of your customers’ lives?

Share
GoPro’s founder and CEO, Nicholas Woodman, writes this:

We help people capture and share their lives’ most meaningful experiences with others—to celebrate them together. The world’s most versatile cameras are what we make. Enabling you to share your life through incredible photos and videos is what we do.

The verb share centers GoPro’s brand mission. Woodman elaborates, “Like how a day on the mountain with friends is more meaningful than one spent alone, the sharing of our collective experiences makes our lives more fun.” In today’s visually dominant world, the products that GoPro creates enhance its customers’ experiences and make shareability easier than ever.

As stated on the website: “Our customers include some of the world’s most active and passionate people. The volume and quality of their shared GoPro content, coupled with their enthusiasm for our brand, are virally driving awareness and demand for our products.”

Does your brand make sharing possible in some easy and virally visual way? How can you differentiate your brand through creative sharing strategies?

Simplify
In brand building exercises, it is quite common to play with questions like “What if your brand was an automobile … or a celebrity or a color? What would it be?” Those activities are often thought provoking if most of the conversation centers around the why that particular model/person/hue was chosen.

Along those playful lines, here’s another question to ponder: “What if your brand was a magazine … in this case Real Simple?” Real Simple is one of women’s favorite magazines because it truly demystifies almost everything … from cooking several course holiday dinners to removing wine stains to entertaining outdoors to mentoring. Here’s how the brand describes itself:

Real Simple is the everyday essential for today’s time-pressured woman, the guide she can trust to make her life a little easier in a world that’s more complicated by the minute. With smart strategies, genius shortcuts, and shoppable solutions, we help her simplify, streamline, and beautifully edit her life, armed with calm, confidence—and the power of the right lipstick.

Real Simple’s articles are practical and informative and surrounded by lots of white space and often summarized in the back of the physical magazine on perforated tear off cards that their readers can slip in their wallet and take to the store or save in an easy to find manner. Real Simple is part knowledgeable friend, part cheerleader, part organizer and the verb simple is a brand filter for all they do. In our complex, hyper speed, information-overloaded society, Real Simple is an oasis of uncomplicated and straightforward answers.

Customers crave simplicity (just take a peek at Google and Apple’s strategic success). Is “simplify” a conscious part of your strategic plan in 2015? How can this verb be incorporated more holistically across all your brand touchpoints?

Take along, share and simplify … three more robust verbs that have the potential to set your brand apart this next year. Think through these verbs in relation to your brand mission. Fast forward and consider how your customers might feel if these were a part of your strategy, and then, go ahead do something with these verbs!

Numbers Don’t Lie: Gen X, Can You Handle the Truth?

If you’re a Gex Xer, chances are since you’ve been in the workforce, for better or for worse you’ve lived in the shadow of the Baby Boomers. They’re the ones who have hired you, fired you … and most certainly always held the best jobs. The more I think about the marketing world, the more I realize that there’s an important undercurrent here, one that will have a tremendous impact on Gen X, and quite possibly Gen Y, as well.

If you’re Gen X, that means you were born in the ’70s, grew up in the ’80s and came of age in the ’90s, or something like that. You grew up listening to music like Van Halen, Run DMC, The Smiths and Nirvana. You went to school, and probably began working sometime during the second Clinton Administration, beginning to pay off your student loans. It was an exciting time to enter the labor force, just as the digital revolution was beginning to take hold.

Like many others in my generation, I entered the labor force in the mid-’90s. My first job was with a marketing firm. I was hired by a Baby Boomer, a nice woman named Stephanie about 20 years my senior. Marketing at the time was still pretty old school, but it was there where I was given my first work PC, set up with my first email address, and taught to surf this new thing called the World Wide Web using what was then the state-of-the-art browser called Netscape.

If you’re a Gex Xer, chances are since you’ve been in the workforce, for better or for worse you’ve lived in the shadow of the Baby Boomers. They’re the ones who have hired you, fired you … and most certainly always held the best jobs. The more I think about the marketing world, the more I realize that there’s an important undercurrent here, one that will have a tremendous impact on Gen X, and quite possibly Gen Y, as well.

You see, last time I talked about a transition that’s taking place in the marketing world, as an older generation of brand stewards gives way to a new generation of digital marketers. I explained this trend was set to accelerate in coming years due to the rapidly changing nature of marketing itself, which is becoming more data driven, technology focused and operational in nature. In case you missed it, you can read about this topic in “3 Ways Rank-and-File Marketers Matter to the C-Suite in a Brave New Marketing World.”

In the marketing world (not in tech, but most definitely in the rest of corporate America), most high-level roles are still staffed by Boomers. What I find very interesting is that for the most part, the vast majority of Baby Boomers (with some notable exceptions, of course) are not especially digital people. Many have learned to live and work in the digital world and quite well, but when I see my dad fumble around on his feature phone I most definitely can see a huge gap.

So the transition I mentioned above will essentially be a passing of the baton, as the Boomers recede from the picture and are replaced by the next generation of marketers. Now here’s where it gets really interesting. According to the U.S. Census Bureau, a Baby Boomer is someone who was born between 1946 and 1964. Ranging in age from 48 to 66, Baby Boomers aren’t getting any younger. Generation X spans the years 1965 to 1983, more or less, while Gen Y is from 1985 to 2003. Now let’s take a look at the size of these three generations:

  • Baby Boomers: 79 million
  • Gen X: 41 million
  • Gen Y: 85 million

What this means is that in the marketing world if you’re a Gen Xer, your time to lead is coming. If you look at the numbers above, you can see there will there be a huge leadership void that will need to be filled as the Boomers retire during the next few years … as a small generation replaces a huge one. The economic crisis during the past for years may have postponed their retirement. But any way you slice it, the Baby Boomers will soon begin retiring more or less en masse during the next few years. When they go, they will leave huge leadership vacuum behind.

But that’s not all. In today’s marketing world, playing a leadership role will require both digital and managerial experience. This means that if you’re a Gen Xer with digital marketing and managerial experience, you’re literally going to be worth your weight in gold in coming years as the generational transition accelerates.

Don’t believe me? Just wait and see. And if you’re not ready to rise to the occasion, guess what? There are 85 million hungry and talented digital natives in Gen Y itching to move up ahead and take your place. If anything, they are the most digital generation yet. At this point, they’re still young and have yet to acquire the years of on-the-job experience it takes to succeed in a high-level marketing job. But give them some time and that will certainly change.

So, Gen X, are you up for the job? To quote Jack Nicholson is the classic 1992 movie A Few Good Men, “Can you handle the truth?” If not, Gen Y will be there waiting in the wings, happy to swoop in and take your place.

Any questions or feedback, as usual I’d love to hear it.

—Rio

Strategies for Growing Your Mobile Marketing Program

You’ve seen all the numbers. Heck, just look around. People are increasingly reliant on their mobile devices to meet the needs of their daily lives. They’re consuming content via mobile devices and interacting with the physical world in a wide range of ways.

You’ve seen all the numbers. Heck, just look around. People are increasingly reliant on their mobile devices to meet the needs of their daily lives. They’re consuming content via mobile devices and interacting with the physical world in a wide range of ways.

The importance of mobile in our daily lives was recently reflected in a July 2011 report from Metacafe:

  • 31 percent of survey respondents said they can’t live without their mobile phone;
  • 22 percent said they can’t live without their smartphone;
  • 19 percent said they can’t live without their video game console; and
  • 7 percent said they can’t live without their tablet.

If that weren’t enough, the other categories in the survey show that consumers also find radio, newspapers, magazines, TV, laptops and PCs, and e-reader devices to be of value as well, all of which are increasingly taking on a mobile hue. Mobile is fundamentally shaping how the modern-day consumer interacts with the world.

It’s certainly exciting watching the growth of mobile and its use for consumer engagement and marketing. However, when you look at the adoption numbers of mobile, as well as all the ways consumers are using their mobile devices, we’re not seeing an equal growth of media spend within the mobile media and advertising categories. True, there’s a number of forward-looking brands that have embraced mobile as a medium to engage their customers, but for the majority of brand marketers mobile still eludes them.

They don’t have a mobile presence; that is, the majority of marketers have yet to deploy a mobile-optimized website, application or messaging solution that seamlessly interfaces their core brand message, offerings, content and customer relationship management solutions.

It’s clear that brand marketers are beginning to emotionally understand the strategic imperative of mobile, but when it comes to allocating budget the results speak for themselves. Most marketers haven’t moved past the emotion of knowing they need mobile to the next stage of critical decision making in order to allocate larger portions of their budget to mobile.

There are a number of factors that, if addressed, can help brand marketers make informed investment decisions in the mobile space. What brands want or need are:

  • comparable case studies and benchmark metrics from players within their respective market sector;
  • research that provides directional evidence of brand marketing spend allocations across industries and media;
  • efficiencies in mobile presence development and media buying/targeting across all media; and
  • education on why and where spending can be effectively applied to meet specific objectives, how to execute programs that enhance engagement at every stage of the consideration funnel, and when programs should be developed and delivered — and in what sequence.

Research, education and experience sharing (i.e., case studies) are all factors that can be addressed in short order. Market players (e.g., brand marketers, agencies, media and advertising companies, and the myriad of mobile experience enablers) need to join forces with the common understanding that the world is mobile. A collective force — e.g., the global Mobile Marketing Association membership base in partnership with the Association of National Advertisers, the Direct Marketing Association and others — can create the momentum needed to address the above factors, as well as reduce industry friction and serve the consumers of today who clearly have the world in the palm of their hands. They just need guidance on how to embrace it. A great place to join forces is at trade events, within association committees, with our respective customers and communities, and, most importantly, within our own firms. To embrace tomorrow you must embrace mobile today. Life is mobile.

Mobility, the World of Senses and Where We Go From Here

It’s difficult to explain an experience like the MMA CEO/CMO summit in words. It takes all of the senses to truly appreciate the opportunity. However, what can be shared is the knowledge that was imparted. Marketers, publishers, technologists, futurists and researches shared their thoughts and visions as to how we got here, exactly where we are and where we might be going with the world, mobility and the role of marketing.

There’s a rich and enticing world around us. When and wherever we are, there’s something to see, hear, taste and touch. In other words, there’s something for us to sense. When we sense something, what happens next? We take the input from our senses in order to make informed decisions to determine our next actions and reactions to what’s around.

Last month, my senses were bombarded with rich and exciting input while attending the Mobile Marketing Association’s (MMA) first ever MMA CEO/CMO Summit in the Dominican Republic in July.

First of all, you know you’re in the right place when you find yourself in the proximity of over 150 of the leading executives in the mobile marketing industry. I mean, how much more fun can life get? However, when you find yourself surrounded not only by great people, but also at a venue like the Casa De Campo (a plush resort surrounded by crystal clear ocean, white beaches and jungles), with impressive food and entertainment (including donkey polo, golf, swimming, dancing and more), as well as two days of thought provoking presentations and roundtables you know you’re in for something special, even if you can’t take it all in due to sensory overload. Sadly, I missed the donkey polo, but I heard that it was great fun.

It’s difficult to explain an experience like the MMA CEO/CMO summit in words. It takes all of the senses to truly appreciate the opportunity. However, what can be shared is the knowledge that was imparted. Marketers, publishers, technologists, futurists and researches shared their thoughts and visions as to how we got here, exactly where we are and where we might be going with the world, mobility and the role of marketing. For example,

• Scott Harrison, founder and president of Charity:Water showed us how a small group of people can change the world and improve the life of millions by helping them tap fresh water that exists right under their feet.
• Barry Judge, CMO of Best Buy and Mike Kelly, CEO and president of The Weather Channel talked separately and both explained how and why mobile is playing a central role in their 360-degree consumer engagements strategies.
• Nicholas Wallen from MIT Mobile Experience Laboratory shared how it’s creating hybrid cities and are connecting people, places and information.
• Jessica Kahn from Disney’s Tapulous shared the “nine things that worked,” covering the nine things that helped Tapulous become one of the leading mobile gaming platforms with over a billion games played.

The above presentations and more (click here to download a few) were just the beginning. Another speaker, Fabian Hemmert, PhD candidate at the Design Research Lab, Berlin University of the Arts, showed us even more. Mobile devices and their sensors — the camera, gyroscopes, accelerometers and more — are becoming an extension of our own sensory capabilities, such as the ability to see the world and commerce differently though augmented reality (check out the iButterly YouTube video), but this is just the start.

As Hemmert’s work points out, by adding pressure, moisture sensors and using existing sensors in new ways, entirely new experiences through mobile are possible. Just think, you can squeeze your phone and virtually shake someone’s hand, or give your phone a quick peck and blow someone a kiss. Who would have thought? See Hemmert in action on Ted.

Also, a few weeks following the summit I was fortunate enough to be able to meet Chander Chawla, director and general manager, personal mobile devices at National Semiconductor. Chawla shared what he called “software-enabled hardware” that his team is experimenting with. For instance, by extending and exposing a simple UV light sensor off a chip that’s present in most phones, the phone can monitor the level of UV exposure and alert you to put on sun screen. You can also tweak how sound waves are generated. By adding a few additional speakers you can take a traditional flat sounding device and turn it into a surround sound experience like none other. Finally, Chawla is experimenting with new visual display experiences that latterly add a new spectrum of color that I did not know existed.

If you weren’t able to attend the summit this year, I encourage you to visit the MMA events website and download the presentations. I also encourage you to consider attending next year, or any of the numerous mobile and marketing gatherings that are happening throughout the industry such as Mobile Monday’s, Mobile Marketing Week in New York (being put on by Mobile Marketer), Advertising Week, CTIA Entertainment, MMA LA Forum, ANA Annual event and so many others. I’m sure you won’t be able to make them all, but there’s really nothing like being there in person to meet and exchange ideas with the people around you and to fully embrace and stimulate your senses.

The Yin and Yang of Dealing with Good and Lousy Customers

For years I used to quote the statistic that a satisfied customer will tell three people, while an unhappy customer will tell 11 people. This was B.I. (before the Internet).

Today, an unhappy customer can go online and reach tens of millions of people around the world with an angry message.

One of the most fascinating figures in modern retailing is Bradbury H. (Brad) Anderson, a Northwestern Seminary dropout who went to work for a small midwestern music store called Sound Music. Over the years, Anderson turned the little shop into electronics behemoth Best Buy, with 1,400 stores across the United States and Canada, $45 billion in sales and 155,000 full- and part-time employees.

The corporate philosophy of most giant retailers is to drive every possible consumer into the store with TV advertising, cents-off coupons, mail shots, special newspaper offers and all the other bells and whistles of marketing wizardry.

But Anderson saw that many of these giants were performing poorly.

Several years ago in analyzing Best Buy’s customer file, he discovered that of the 500 million customer visits a year, 20 percent—or 100 million—were unprofitable.

So he hired on as a consultant Columbia Business School Professor Larry Selden, author of “Angel Customers and Demon Customers: Discover Which Is Which and Turbo-Charge Your Stock.”

It was Selden who came up with the revolutionary theory that a company is not a portfolio of product lines, but rather a portfolio of customers.

Direct marketers have operated on that premise since the 1920s.

Selden divides customers into “angels” and “devils.” Angels are the desirable customers who buy stuff and keep it—the kind of folks worth doing business with.

“The devils are its worst customers,” writes Gary McWilliams in his Wall Street Journal account of Best Buy. “They buy products, apply for rebates, return the purchases, then buy them back at returned-merchandise discounts. They load up on ‘loss leaders,’ severely discounted merchandise designed to boost store traffic, then flip the goods at a profit on eBay. They slap down rock-bottom price quotes from Web sites and demand that Best Buy make good on its lowest-price pledge.”

As with direct marketers, Best Buy carefully analyzes its customer base, spending time and money to lure the angels into the store and eliminate promotional efforts to the devils. It is also enforcing a 15 percent restocking fee for bad actors.

Unlike direct marketers, Best Buy cannot keep these sleaze balls out of its stores. But it can make life difficult for them while, at the same time, giving excellent service to its good customers.

On the other hand, when you have 155,000 employees, not all are smooth schmoozers or judges of people and absolutely “go by the book.” The result, nice folks can have miserable customer experiences and tell the world.

Satisfied Customers vs. Angry Customers
For years I used to quote the statistic that a satisfied customer will tell three people, while an unhappy customer will tell 11 people. This was B.I. (before the Internet).

Today, an unhappy customer can go online and reach tens of millions of people around the world with an angry message.

What triggered this story was the following e-mail forwarded to me last week by a long-time colleague that directly relates to Brad Anderson’s customer angels-and-devils policy.

Dear friends:

I received several copies of this email. My own take on dealing with retailers like this: Use a credit card.

BEST BUY, MY FOOT
Best Buy has some bad policies…. Normally, I would not share this with others. However, since this could happen to you or your friends, I decided to share it. If you purchase something from Wal-Mart, Sears etc. and you return the item with the receipt they will give you your money back if you paid cash, or credit your account if paid by plastic.

Well, I purchased a GPS for my car, a Tom Tom XL.S from ‘Best Buy’. They have a policy that it must be returned within 14 days for a refund!

So after 4 days I returned it in the original box with all the items in the box, with paper work and cords all wrapped in the plastic. Just as I received it, including the receipt.

I explained to the lady at the return desk I did not like the way it could not find store names. The lady at the refund desk said there is a 15% restock fee for items returned. I said no one told me that. I said how much would that be. She said it goes by the price of the item. It will be $45 for you. I said, all you’re going to do is walk over and place it back on the shelf then charge me $45 of my money for restocking? She said that’s the store policy. I said if more people were aware of it they would not buy anything here! If I bought a $2,000 computer or TV and returned it I would be charged a $300 restock fee? She said yes, 15%.

I said OK, just give me my money minus the restock fee.

She said since the item is over $200, she can’t give me my money back!!!

Corporate has to and they will mail you a check in 7 to ten days. I said ‘WHAT?!’

It’s my money! I paid in cash! I want to buy a different brand. Now I have to wait 7 to 10 days. She said the policy is on the back of the receipt.

I said, Do you read the front or back of your receipt? She said well, the front! I said so do I. I want to talk to the manager!

So the manager comes over, I explained everything to him, and he said, Well, sir, they should have told you about the policy when you got the item. I said, No one has ever told me about the check refund or restock fee, whenever I bought items from computers to TVs from Best Buy. The only thing they ever discussed was the worthless extended warranty program. He said, Well, I can give you the corporate phone number.

I called corporate. The guy said, well, I’m not supposed to do this but I can give you a $45 gift card and you can use it at Best Buy. I told him if I bought something and returned it, you would charge me a restock fee on the item and then send me a check for the remaining $3. You can keep your gift card, I’m never shopping in Best Buy ever again, and if I would of been smart, I would of charged the whole thing on my credit card! Then I could have canceled the transaction.

I would of gotten all my money back including your stupid fees! He didn’t say a word!

I informed him that I was going to e-mail my friends and give them a heads up on this store’s policy, as they don’t tell you about all the little caveats.

So please pass this on. It may save your friends from having a bad experience of shopping at Best Buy

It’s true! read it for yourself!!

Takeaways to Consider

  • As a result of this letter, I will think twice about ever shopping at Best Buy.
  • If this letter was forwarded—and re-forwarded—around the world, tens of thousands of wary prospects will drive right past Best Buy make a point of shopping at Wal-Mart, Target or Radio Shack.
  • It is assumed that you analyze your customers every which way to Sunday. The simplest formula in the direct marketing community is recency-frequency-monetary value (RFM). (Other highly sophisticated systems are available and should be looked into.)
  • Divide customers into quintiles, with the top quintile being your caviar and cream.
  • The bottom quintile is very likely costing you money.
  • The object of marketing is to move customers in the second quintile into the first quintile, the third quintile customers into the second quintile and so on.
  • In direct marketing, it is relatively easy to control the bottom quintile by marketing to it with less frequency, but keeping the addresses current so you can make money off of list rentals.
  • In retail, the bottom quintile is a nightmare. It’s tough to keep undesirable customers out of stores. One possibility is to divide the bottom quintile into its own quintile with the bottom two-fifths—the serial returners and shysters whom you do not want as customers—dealt with firmly.
  • This must be handled with great delicacy. Otherwise consumer activist groups can get on your case and create a flurry of poor publicity.
  • When you go to www.bestbuysux.org, you will find that Best Buy owns it and has turned it into a sales pitch for its products and services.
  • You may want to own the following URLs: www.[YourCompanyName]sucks.org and www.[YourCompanyName]sux.org and follow Best Buy’s example.
  • It used to be axiomatic that a happy customer will tell three people; an unhappy customer will tell 11 others. Today, with the Internet, an unhappy customer can tell the entire world.