From Seth's Blog
In
the face of significant change and opportunity, people are often one of the three.
If you're going to be of assistance, it helps to know which one.
Uninformed people need information and
insight in order to figure out what to do next. They are approaching the
problem with optimism and calm, but they need to be taught. Uninformed is not a
pejorative term, it's a temporary state.
Clueless people don't know what to do and they
don't know that they don't know what to do. They don't know the right questions
to ask. Giving them instructions is insufficient. First, they need to be sold
on what the platform even looks like.
And frightened people
will resist any help you can give them, and they will blame you for the stress
the change is causing. Scared people like to shoot the messenger. Duck.
The
worst kind of frightened person is one with power. Someone in a mob of other
frightened people, someone with a gun, someone who is the CEO. When confronted
with a scared CEO, time to run. Before someone can change, they have to learn,
and before they learn, they have to cease being scared.
One
reason so many big ideas come from small organizations is that there is far
less fear of change at the top. One mistake board members and shareholders make
is that they reward the scared but hyper-confident CEO, instead of calling him
on the carpet as he rages at change.
When
I first encountered surfing, I was scared of it. It looks cool, but an old guy
like me can get hurt. A patient instructor allayed my fears until I was willing
to get started. When you first start out, the things you think are important are
actually irrelevant, and it's the stuff you don't know is important that gets
you thrown into the ocean. Finally, and only then, was I smart enough to
actually learn.
I'm
bad at surfing now, but at least I know why.
Comfort
the frightened, coach the clueless and teach the uninformed.
Industry Veteran to focus on CRM Technology and Innovation
John Zell brings to Razorfish a senior-level perspective on technology that will support our growth as a digital CRM agency. With his extensive experience and thought leadership in the CRM space, John will be a key leader in developing the next evolution of products and solutions for our clients.
Our CRM business is thriving in today's market. Businesses are burdened with a very complex mix of technology platforms, data sets and coordinated cross-channel customer engagement. John will be a tremendous influence integrating traditional CRM solutions with Social Relationship Marketing (SRM).
San Francisco, CA -- February 3, 2010 -- Razorfish, one of the world's largest digital agencies, has hired John Zell, a 20-year marketing and technology industry veteran, as vice president of Customer Relationship Technology Solutions. He joins the Razorfish national CRM practice and will help drive the growth of CRM platform and data solutions throughout the Razorfish client base.
Zell, based in the Razorfish San Francisco office, will lead CRM technology innovation and the development of integrated data solutions.
Zell joins Razorfish from Protocol Inc., where he was senior vice president and chief technology officer of Integrated Marketing Services. Prior to Protocol, he was senior vice president of Marketing Services at Harte-Hanks for 10 years, where he was instrumental in building enterprise data solutions and business intelligence for hundreds of large organizations.
David Baker, Razorfish vice president of CRM Solutions, said, "John brings to Razorfish a senior-level perspective on technology that will support our growth as a digital CRM agency. With his extensive experience and thought leadership in the CRM space, John will be a key leader in developing the next evolution of products and solutions for our clients."
The Razorfish CRM practice is a centralized, cross-functional team of experts who support the innovation, and delivery of enterprise CRM programs. Baker said, "Our CRM business is thriving in today's market. Businesses are burdened with a very complex mix of technology platforms, data sets and coordinated cross-channel customer engagement. John will be a tremendous influence integrating traditional CRM solutions with Social Relationship Marketing (SRM)."
Zell joined Razorfish February 1. His role is national in scope, spanning nine U.S. offices.
About Razorfish
Razorfish creates experiences that build businesses. As one of the largest interactive marketing and technology companies in the world, Razorfish helps its clients build better brands by delivering business results through customer experiences. Razorfish combines the best thought leadership of the consulting world with the leading capabilities of the marketing services industry to support our clients' business needs, such as launching new products, repositioning a brand or participating in the social world. With a demonstrated commitment to innovation, Razorfish continues to cultivate our expertise in Social Influence Marketing, emerging media, creative design, analytics, technology and user experience. Razorfish has offices in markets across the United States, and in Australia, China, France, Germany, Japan, Spain and the United Kingdom. Clients include Carnival Cruise Lines, MillerCoors, Levi Strauss & Co., McDonald's and Starwood Hotels. Razorfish is part of the Publicis Groupe (Euronext Paris: FR0000130577) VivaKi organization. Visit www.razorfish.com for more information. Follow Razorfish on Twitter at @razorfish.
# # #
As Abraham Lincoln said, "I walk slowly, but I don't walk backwards." We've made amazing strides in the email and marketing automation space with regard to our strategic thinking, technology advances and how we link disparate technologies to solve problems -- but have organizations followed our lead? Looking back over the years, I find there is a natural progression to how people use email and the relative complexity of implementing ideas and the costs/risks and ROI of these activities.
I've used this sliding scale for years to illustrate where a company is today, what they hope to achieve so we don't get lost in some high-level-growth goal associated with "creating 1:1 dialogues" that are very hard to attain. The hierarchy of optimization is best illustrated by the following areas, beginning with the bottom and migrating upwards with increasing levels of investment to optimize, with potentially higher return on the activities.
1. Acquisition: historic list growth, customer touch-points, file aging and list cross-over activities usually fill this area of optimization, all associated with better understanding the value of a new customer/lead and how we interact at the front-end of the funnel..
2. Deliverability: All the basic elements we do day in and day out: domain analysis, ISP relations, list hygiene. With the maturation of the lists we have in play today and the increasing discrepancies of the ISPs' practices, this has increasingly become a mission-critical area we don't talk about enough, test enough or have enough resources to support. Most companies could use a good "review" by a deliverability expert once a year.
3. Interest Generation: Today we could call this "engagement." It includes offer selection, creative/copy testing, frequency, subject line testing, and preference center design -- anything that supports understanding customers' intent and how to reach them.
4. Personalization and targeting: We speak a lot about this, but most think it's the infusion of personalization in a subject line or body copy. It's not! Personalization is both an email and company-wide initiative that is far more complex than an email. It includes data integration, geo/demo overlays, triggered messaging behavioral messaging, site/email and messaging - and, of course, integration of share components.
5. Segmentation: The farther we get into segmentation, the more complicated and intertwined it becomes. Behavioral segmentation, attitudinal overlays, MVC analysis, RFM strategy, longitudinal response, and cross-channel testing all present challenges for companies to optimize in channel and cross channel.
6. Conversion Efficiency: Places more pressure on your ability to measure to conversion and control some of the variables responsible for supporting a sale - for example, offer targeting, timing, sequenced messaging, and remarketing, path to conversion
7. Cross-Sell - Upsell: This presents the finest opportunity. It means you have intelligence on what and why customer buy, and some predictive measures in place to assess risk to market to certain segments and the potential outcomes associated with the market. These activities include: list overlap analysis, cross-product affinities, customer lifecycle, predictive modeling, campaign decision trees -- all of which support "decisions" and "migration."
While every company has a slightly different view and classification, by looking at this through an evolutionary view you can assess where you fit on this scale and what you hope to evolve to over time. In large companies, it can be difficult to organize around this progression. In small companies, it can be difficult to grasp the scale of return on some. But remember this: the vehicle you're riding in (train/car) may be going 60 MPH, but are you sitting still during this ride?
As I’ve said for years, “if you shoot for the stars, you’ll land on the barn; if you shoot for the barn, you’ll land in the pig pile.” Are we shooting high enough when building, planning and executing our eCRM programs? Do we get enough recognition for the contributions of our email program? Are we doing enough to drive excitement for our contributions? Let’s think about this. Most businesses will project a modest growth in revenue and profit and with that comes a modest increase in marketing spend. Yet that distribution doesn’t always funnel down to the email channel. How many of you had growth for years as a business, but your budgets for email were cut or remained stagnant?
I believe there are three reasons why we’ll remain an under-funded channel for 2010.
Most programs need to improve basic executions and operations and that’s not sexy. Email is 80% operational and 20% strategic thinking. An incremental improvement in operational elements will go a long way in opening the door to doing more complex implementations. Some of this could be related to technology, some related to your production model (in-source vs. outsource) and some related to where you reside on the “urgency scale.” Do you operate in red-lined mode all the time? If you do, you are likely woefully inefficient and no technology will change that. You have to show operational responsibility, how you are growing with what you have, and how you plan to scale that over time. Some of it is simply looking closely at your operations with an efficiency mind, not a direct response mind.
Email is an enterprise communication channel with bad PR. No longer is email viewed in the same manner as Search and Media in the front of the funnel. It is still not really seen as a relationship builder in the bottom of the funnel. While we like to speak of email as a relationship marketing tool, that is all it is – a tool – and it doesn’t work alone. It is a support mechanism and a service to the customer. Let’s not forget the fundamental value of why businesses use email – it is more cost-effective than a phone call or ad. Unfortunately, we all consume email, so we all have our own perspective as a consumer of commercial email, and consumer perception of email usually trumps the marketer’s view. So, it will always skewed by our personal perceptions of the value, and budgeting will be affected. Even though CMOs recognize the value of email, don’t ever forget they likely have a very negative perception of it as a relationship-building vehicle. It’s a cheap convenience to a business for staying in touch and top of mind with a consumer. This perception must change and better stories of consumer experiences and consumer feedback must accompany the culture. Look at Daily Candy: their entire business was predicated on email and great stories of local connections. How many of your businesses or clients can say the same and see a real personal connection with your customers through email?
Think small, live small. You have to develop BEHAGs (Big, Enormous, Hairy, Audacious, Goals). These are the ones that will change the world and the fabric of your business. They should be lofty, should gain attention and you should be bold enough to resonate with all levels. If you continue to think small, think channel alone and not contribute to the vision and changing of the world or better yet your business, you’ll always be relegated to limited budgets and share of voice. No one cares about response rates, (except you) and no one is impressed with modest list growth numbers, but you will get attention if you project to “Own the Point of Intermediation.” Own the connections, the digital experiences and dialogs at the beginning and end of the funnel. Be the connection between Advertising and Brand Experiences.
Email is simple! As I’ve said many times before, we aren’t doing anything today that we didn’t do ten years ago. The visibility of the channel has risen amongst senior executives. Now we need to shift their view of the real contributions it makes to a business, and simple, in this case, isn’t the best way to do that.
Our industry has had an interesting time this year, as well. Email has a great ROI and budgets for email are increasing slightly. How would I grade 2009?
Technology and Innovation: Grade: B- I didn't see any dramatic innovation in the email channel in 2009, nor did I see companies invest that heavily in email platforms. While many platforms have evolved and are certainly more sophisticated today, I wasn't that impressed with any major product launches in 2010 that stretched our use of the channel or capabilities. There was some innovation within marketing automation players, but none was earth shattering. It was more a process of reaching parity with some of the long-time ESPs.
Investment: Grade: C+. Aside from ExactTarget's rounds of funding, it's been a rather slow year, with only a few small acquisitions. No major moves in the space. There's been talk of a few ESPs and IPOs, but little movement in the M&A area and little investment in these companies. Best described as a year of survival.
Integration of Email with other channels: Grade: B. This wasn't the year of mobile. We are still talking about mobile in the same context as 2008. This was a year of social! While technology innovation and data integration with social efforts is still in its infancy, more agencies are pressing the platforms and organizations to combine social marketing with relationship marketing and email. Yet aside from share to social, no major strides in combining measurement platforms with email.
I do think 2010 has a lot of potential for this channel. We have survived the times. The strong companies are still around, and the small companies are still surviving. I predict the following:
Social relationship marketing -- I'm a firm believer that social behavioral data will be as valuable to us as cookie-level data is to targeting and site side personalization. The major data providers will combine this view with household level data and contextual sharing to offer marketers a broader view of the consumer and how they interact through their networks. Along with a long-tail view of the consumer and growing databases, it will force marketers and service providers to innovate and take some risks in this area.
Predicting the Consumer: We've been doing the same things for 10+ years. Same strategies, same approaches and seem to be recycling things. The next generation must develop some predictive nature to our programs. Who is likely to be a long-time subscriber? What triggers will help predict engagement through the email channel? What triggers in early lifecycle will predict higher engagement value? What is the threshold to discounting and price elasticity and how does the email channel influence this? What cross channels are best to build the most valuable experience and relationship?
We will hear more about predictive targeting and communication planning, rather than mass personalization and dynamic content this year. Those are means of doing things, but we need more thinking in "what if" scenarios to really add more value through the channel.
CPM Commoditization: We are already seeing the price of sending email shrinking. I believe we'll see more of this in 2010. The platforms can mostly do whatever you need to do -- and the service level support from the ESPs will be an expectation, not a value add. Thus, CPMs will decline and in some forms become a commodity that is highly negotiated. Consider that 30% of companies will switch ESPs in the next year; this will create a natural competitive flow to this pricing.
Data Privacy: We, as consumers, will completely freak out when we realize what information is available about us for anyone that wants to buy it. While I see great value in this data from a marketing side, there will be consumer backlash in controls of online social data that will be the buzz in the last half of 2010.
Why is it you only hear about pay per performance (PPP) when it comes to online advertising and customer acquisition? This concept grew out of the online advertising world. In the past you'd just spend and hope your ad units drove customer sales. It was all about the big idea and reach. We've since evolved into a world of performance models in acquisition. We pay for clicks, we pay for impressions, we pay for leads and we pay for conversions. We do it in search, we do it with email, we do it with media and exchanges, yet that models stops once you get that first purchase.
Why can't we apply the same principles of performance marketing to retention marketing? Why is it that you spend so much to acquire a customer, but you still have half of your customer file of non-buying customers, dormant customers or non-responsive customers?
The principles of performance marketing don't lie. You should have some control over reach and governance over the amount of exposure to your audience. You should have a solid method of reconciliation and attribution (who really gets credit for a sale?). You should have the technical, creative and strategic means to optimize, test, learn and re-optimize without fatiguing your audience. You want empirical evidence that something drove a sale or behavior and are willing to pay for it.
Are open rates important? Why wouldn't you think in terms of eCPM? This calculation has gained tracking in the advertising world for years to provide a better performance metric that aligns to financial and reach goals. (Total Earnings/Impressions X 1000 = eCPM).
In my experience over the years, I haven't found one client or partner that has it all together to run programs like this for non-acquisition programs. I believe the market will dictate that change. But what stops most from attempting it?
Sensitivity to Control. There is sensitivity to the perception of losing control in retention marketing. CRM is about knowing the customer and optimizing the experience. A performance model could potentially introduce a less controlled experience that may not be aligned with customer loyalty goals. I also blame this issue on the vendor landscape. There are too many grey areas to acquisition and PPP models, and many traditional marketers don't trust this model with their most valuable customers. But PPP doesn't mean you have to lose control over offers, discounting, promotions and cadence.
Pay-Out Model. You'd think it would be simple. You drive incremental business and you pay a %. But retention marketing budgets work differently and they aren't as variable and fluid as acquisition, media and search budgets when it comes to performance and pay-outs.
Lack of good attribution. If you don't trust or have clear insight into what drove the sale, you'll never run a PPP program. Most companies lack the reporting, the science behind attribution and the discipline to run a program like this. In the online advertising and search space, the heavy lifting of pay-outs relies on the vendor. If you don't report and reconcile, you don't get paid. If you think you do it now, try it out for a few months. Hold back your employees' paychecks if they don't perform, and I bet the reporting will become far more detailed and accurate.
Little appetite for risk. PPP is a risk-to-reward model. It requires some calculated risk and a bit of trust in your partners. You can't expect to run these programs alone. You shouldn't try to absorb all the risk. Many don't have the infrastructure or capabilities to run these models alone, nor should they try.
No Bandwidth. That's the excuse for not getting it done, but really that translates to mean you just haven't prioritized PPP or don't trust that it will drive the highest results. But in the age when customer attrition is over 35% a year, you'd better find a way to get more out of your spend. You can't rely on commoditized CPM costs to increase your capabilities.
PPP isn't an easy type of program to negotiate with your agencies and partners. But it's something you should begin to discuss in your planning; you should find ways to weave it into your strategy and budgets. Just as you should be thinking about it from a marketer perspective, your agencies and partners should be thinking of creative ways to model PPP to future budgets.
"There is no such thing as coulda, woulda and shoulda. If you shoulda and coulda, you woulda done it." -- Pat Riley (Basketball Coach)
Trying to figure out what to do with social media strategy as it relates to CRM still seems to be an exercise in guesswork. One of the panels attempted to focus on the type of data that the social world produces: number of fans, number of connections, feedback, comments; essentially social graph data.
The first audience response was "Oh my gosh, businesses really can see all these things I post online?" -- followed by "What do I do with this data?" There was a lot of discussion about what the larger data aggregators (Experian, Acxiom etc.) were doing with social data and how companies were accessing this data. But there was very little substance about pure integrated social campaigns, innovative technologies or how companies are using this data for targeting, segmentation and intelligent marketing.
While the common response to various social media campaigns presented in roundtable settings was "cool!" I could see that most were curious, yet still had a hard time seeing where it fit into their business world. Social marketing is something we'll all have to embrace over the next few years as it gets ingrained into how we build Web and consumer experiences. Many retention marketers struggle with how to measure influence and how their marketing activities integrate with social. But there's no mistaking it, this is a subject that will be so core to marketing in the coming years that email marketers can't afford to get behind the game. One marketer said, and I had heard this quote some time ago, "Social marketing is like sex as a teenager! You get really excited about it, you talk about it a lot, but you're not very good at it."
We offered a few other topics that were very consumer-focused to help round out the Summit, with panels from Microsoft on the Hotmail inbox, as well as a stellar presentation by Loyalty Labs on consumer loyalty programs.
One of the big winners was the "Building an Email Database" roundtable run by Mike Fitzgerald of AdKnowledge. While there was a lot of talk about acquisition, there were heated discussions on the value of email append services. I was a bit surprised at some of the conservative comments from acquisition-oriented companies, but it netted out that email append is alive and well. Most of the larger brands do it persistently as a list hygiene process, and you shouldn't discount it when applied properly.
What was missing from this summit, I thought, was discussion of pure deliverability, and more case studies. The feedback was clear: People wanted to hear about deliverability, more about privacy and essentially "what are the challenges getting into the inbox." We've deviated from this technical and tactical view of deliverability in the past, giving way to more topical discussion around trends, but you could tell there was a void. As programming chair, I will definitely work to ensure we integrate deliverability back into the main stage sessions in April.
This event is always a mix of service providers and industry people, along with representatives from consumer and B2B brands. As is common with brand marketers, they clamor for case studies and examples of what others have done. Personally, I find these contextually irrelevant in many cases, unless you find that pearl of a study with a great presenter. But there is no denying that the audience wanted more "meat" on these topics. You can never get away from the value of case studies and the intimacy of program details that usually comes forth.
So, the next summit will definitely feature a blend of case work and foundational topics (deliverability). Too, I bet by then we'll find some great examples of Social CRM.
If you have great ideas for topics, case studies or great speakers for the April Email Insider Summit, shoot me a note (david.baker@razorfish.com). I'm always a sucker for great content, creative speakers and topics that are "out there."
This event has gradually changed its format and we've tried to infuse other digital elements that impact our channel. We try to explore deeper views into consumer behaviors, and of course include great marketing activities that we can learn from. The Summit is different from some other industry events because it doesn't focus heavily on deliverability and privacy, which some argue are the critical elements of the email channel. Our focus has evolved at the request of the participants and advisory boards. The jewels of the meeting are the roundtables and networking events. This is the place for specific discussions about the practice of email marketing.
I anticipate hot discussions on several topics:
Consumers and their behaviors: we have the Microsoft Live team, who will share recent research on what consumers are doing in their inboxes. Who's talking about travel, dating, financial matters? How effective are marketing-related emails in Hotmail?
We'll extend this discussion with a great panel on social data, learning how to take advantage of the behavioral data available, what the privacy implications are and how marketers are making this actionable.
We have also put together a consumer panel. While in the past we've hosted college students and digital moms to better understand their perceptions and use of email, we've targeted a different group of consumers for this event. We felt there was a finite shift in behavior that happens when someone graduates from college and enters the workforce. As such, we've recruited recent college grads who have done so, to better understand the shifts in their use of email and social when they enter a professional environment and have more disposable income.
The event will feature great speakers on loyalty marketing, creative optimization, mobile marketing, managing multichannel programs, and cross-channel measurement.