Professional Services Marketing

How do you differentiate a law firm?

What makes an ad agency relevant?

How can you tell one accounting firm from another?

Can brand-building really help a consulting firm win more business?

Professional services take away problems and capture benefits. This is why they exist. This applies to law firms, consultancies, advertising agencies, architects, wealth management or private banking services, creative agencies, and accounting firms. If they do it right they are rewarded with long-term, mutually beneficial relationships.

Professional services are fascinating. Tom Peters, management consultant and author, has said, “The professional service firm – with its obsession with clients and projects – must be the new organization model.” Yet, professional services are tough businesses to brand because the promise is intangible and requires a leap-of-faith purchase.

Professional Service Essence

Whether it be a consulting, accounting, advertising or architecture firm, common characteristics apply. Each involves a specialty that demands highly talented people (who can be highly demanding). Most firms pursue deliver services that are repeatable and trainable to efficiently and effectively grow revenue. And though these services are offered to a variety of clients, they must be delivered in a customized way demanding high levels of face-to-face interaction.

The essence of professional services is that they prepare clients for the future, preempt the undesirable, control what can be controlled, and identify new opportunities.

Because of these commonalities, firms tend to share the same business model. They rely on  leverage in organizational design for profitability, structure and process, and career path strategies.

In terms of business development, they become hunter or farmer. Then they endlessly debate how best to go-to-market and usually arrive at an unnecessarily complex matrix involving a combination of service, geography, industry, and/or client segmentation. They bore the market because they are talking to themselves.

The vast majority of firms are too flexible when it comes to strategic positioning. They react to any new opportunity or chase any expression of interest from a prospect, making them quite willing to deviate from “strategy.” They are known to chase fads. Or they bluntly apply defined service offerings to a broad range of client business problems, epitomizing the maxim, “If you only have a hammer, everything looks like a nail.”

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Turf War?: Consultancies and Agencies

Consulting firms have always sized-up the marketing space as a potential service offering. They have flirted with it for decades. Most large-scale forays have ended up in retreat after just a few years. Meanwhile, ad agencies have long-looked to shore up their dusty, old revenue models and expand by purportedly delivering more strategic offers. This too, has been largely episodic and unsuccessful.

Stick around and I will tell you why neither have historically worked but why they may work now. First off let’s substantiate that this mash-up is taking place:

  • Eight of North America’s top 10 agencies are owned by consultancies. Accenture has acquired at least 40 of them. Deloitte, Accenture, KPMG, PwC, and McKinsey now have agency arms.
  • Deloitte is out to create “the world’s first creative digital consultancy.” Meanwhile, IBM’s digital agency unit, iX, has over 10,000 employees and 1,000 designers in 25 offices worldwide.
  • Del Monte Foods selected Epsilon as its U.S. creative agency of record reflecting a fresh focus on data-driven marketing and a move away from traditional advertising agencies.
  • PwC made waves in 2016 when they appointed their first Chief Creative Officer. It should be noted that PwC also named a Chief Purpose Officer, which seems very much like an agency-thing-to-do.
  • Omnicom created Hearts & Science, an integrated digital agency leveraging technology to scale customer relationships. It has attracted Proctor & Gamble and AT&T as clients.
  • Razorfish, a division of Publicis Groupe, partnered with Adobe to build its own digital marketing platform.
  • Starcom MediaVest Group launched marketing consulting brand Zero Dot and sibling Zenith soft-launched a media-focused consultancy called Apex.
  • R/GA and GroupM now offer broad-based consulting services for the purposes of higher margins while securing traditional ad business. This is the strategy of O&M’s strategy consultancy, Ogilvy Red. Carla Hendra, global chairman of Ogilvy Red, is quoted as saying, “If we sell $1 of consulting work, down the road it can lead to $3 to $4 dollars of communications work.”

Clearly, traditional lines are crossing and blurring but why?

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Revitalizing a Wine Brand

I was born in 1965 in Winnipeg, Manitoba. That sentence reads like a dual confession and I have one more to share before this is over but we will get to that shortly. Any how, from the 1960’s to 1990’s, wine took a backseat to beer and spirits in Canada. In Manitoba, Old Vienna beer and any rye brand dominated for decades. When wine did grace the table or flowed at a party, invariably it was Black Tower, Blue Nun, or Baby Duck.

Black Tower suggested Teutonic dominance with its once clay bottles. Blue Nun had a pleasing name and label that implied organized religion had blessed your choice. Baby Duck was hugely successful. It sold 8 million bottles in 1973 alone. The name prompted many imitators. In the 1970’s, you could buy Canada Duck, Love-A-Duck, Kool Duck, Daddy Duck, and Fuddle Duck (say this last one three times fast). One brand even tried a poorly thought-out deviation and went by the name of Cold Turkey.

With all due deference to Black Tower, Blue Nun, and Baby Duck, they were outclassed by a fourth 158243774_-mateus-rose-pink-wine-bottle-candle-brazil-nuts----1powerhouse. Do me a favour. Close your eyes. Now picture a wine bottle unlike the standard. In this one, the 750ml of wine was contained in a squat teardrop shape. Remember it? I am speaking of Mateus. Following consumption that bottle often housed a succession of candles in its tapered neck. Waxes of different colours would run together in pleasing collages. In Manitoba, drinking Mateus and displaying the empty bottle as part of your household decorating suggested European refinement at its best (I am not joking).

Now take a break and allow yourself an eye-roll or laugh. Everyone pokes fun at Mateus. They attack the quality of the wine and claim in a self-deprecating way just how silly they were to ever drink it in the first place. Still, this indicates a fond nostalgia that the brand has never capitalized on. In its heyday, Mateus sold 4 million cases annually in the United States alone. The wine’s owner, Sogrape, now makes less than 2 million cases a year in total. This, to me, is a huge opportunity.

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Jeff Chats Canadian Brands

This article originally appeared in The Globe and Mail.

It works for Canada Goose, but how far can ‘made in Canada’ go? by Shelley White

Sun, sand and surf are not three things we’re internationally renowned for in Canada. Yet one of our hottest exports of the moment is Shan, a line of chic, high-end resort and swimwear that is designed and manufactured entirely in Laval, Que.

In addition to flagship stores in Montreal and Toronto, Shan has boutiques in Miami and the Hamptons, and 65 per cent of its revenue comes from the 30-odd countries it ships to, says Jean-François Sigouin, vice-president at Shan.

Shan is a line of high-end resort and swimwear that is designed and manufactured in Laval, Que., which allows it to retain full control over its product. As 65 per cent of its revenue comes from abroad, the “Made in Canada” brand works for the company because its international buyers recognize that to mean quality, the company says.

The suits aren’t cheap – they run about $300 each – but that’s sort of the point, says Mr. Sigouin.

“The philosophy of the brand is to offer quality instead of quantity,” he says. By manufacturing in Laval instead of overseas, the company has full control over its product. “We are totally vertically integrated from the design to production to retail because we have everything in the same building.”

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The Best in Narrative Psychology

When you meet someone for the first time or reconnect with an old friend or go to a dinner party what takes place? Think of any situation where you are interacting with others. We share an anecdote from our day at the dinner party. We tell that old friend about what has taken place with our family and career. We attempt to connect with someone new by conveying our experiences and interests. This does not mean listing or dating activities. In every instance we use storytelling to communicate, engage, and relate.

Storytelling helps us make sense of our lives and the world around us. They are an incredibly effective method of finding and sharing meaning and context. Mary Catherine Bateson, writer and cultural anthropologist, believes that, “The human species thinks in metaphors and learns through stories.” We are hardwired for stories because we have been telling them for centuries.

Marketing and advertising practitioners continue to debate the application of storytelling in business. The most voracious advocates cannot see past the construct and even the hardiest critics employ storytelling. So why all this sharing of tales? Stories inspire and motivate. Stories make ideas stick. Stories persuade. Stories educate and entertain. That makes for good marketing.

A few years back at the Festival of Creativity in Cannes I had the pleasure of interviewing Arianna Huffington, Co-founder and Editor-in-Chief, of The Huffington Post. It was also a challenge as her handlers held me to just three questions. She once said, “People think in stories, not statistics, and marketers need to be master storytellers.”

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Marketing’s Golden Rule

Recently, I was named one of the 50 Over 50 Marketing Thought Leaders by Brand Quarterly. Beyond enjoying the honor and sharing my age with the publication’s entire readership, I was stumped by a bit of the process. BQ asked me to provide my “marketing mantra” and how it makes better marketers. It seemed like an easy request at first glance.

Then I got it into and quickly discovered I subscribed to many. Perhaps too many. So I sorted through them to see if there was commonality. I also looked for something fresh but compelling and by no way contrived. In the end, I brand-quarterly1landed on the notion of the Marketing Golden Rule. It is a representation of what I have witnessed and experienced as both marketer and consumer. The Marketing Golden Rule speaks honestly to the relationship between buyer and seller.

What is Your Marketing Mantra?

Always ask, “How would I like to be marketed to?” I don’t want to be fooled. I am not looking for false promises. I do not want to be entertained for entertainment sake. I am seeking fit with a brand. This modified ‘golden rule’ keeps the focus on reciprocity. Marketing is a relationship, a two-way street, a process to achieve mutual benefit between people and brands. People expect marketing but do not want to be sold. They want to be valued, heard, and feel special. This makes the profession and practice a profoundly human activity.

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How does Following this Mantra Make Better Marketers?

Marketing facilitates sales by respecting and helping people make the best decisions concerning what, how, and when to buy what they need and want. David Ogilvy said, “The customer is not a moron. She’s your wife.” He was imploring marketers to truly know who may buy what is being sold. This demands an understanding of an individual’s situation and personal motivations to provide an objective rationale and honest justification for every purchase.

Marketing is the study of human behavior and our behavior has not changed in centuries. It has been consistent from ancient open-air markets to modern online exchanges, from Pompeii to eBay. We are both rational and irrational, and we frequently confuse our needs with our wants.

This makes marketing an amazing profession. It is a mix of psychology, data science, pop culture, history, sociology, music, consumer behavior, design, neuroscience, writing and literature, mathematics and so much more. This complex cocktail does not set out to overtly sell, it strategically and creatively promises and proves.

Increasingly marketing is technology-led and data-driven. Marketers are overwhelmed by reams of information. Every brand I work with is inundated with data. It is not making them better at marketing. T.S. Eliot got it right, he asked, “Where is the knowledge we have lost in information?” Data is great if it produces human insights that incite. It sucks when a spreadsheet replaces intimate knowledge of a customer.

Marketing connects on a human level. Consumers expect brands to market to them. Equally so, they expect brands to empathize and understand them. Marketers that hide behind vague, lofty claims or attach inordinate emphasis to dispassionate technology or fail to prove their promises will facilitate few sales because in this there is no relevance, honesty, value or humanity.

Broadly speaking there are two types of people in marketing. There are those who like to fool people and there are those who like to serve people. It is time our profession cast off the old-school, jaded types who believe marketing is about creating myths and trying to snow people with them. We need to celebrate those who know it is about finding a truth that connects people and brands for mutual benefit. All of this starts by asking, “How would I like to be marketed to?”

Cheers, Jeff Swystun

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Trends in Association Branding

Years ago I spoke at a conference focused on crafting association business strategies. This was in the late nineties while in the Marketing and Customer Management Practice at PW (now PwC). My work to that point focused on professional service businesses and consumer products. To tell the truth I was filling in for a colleague who fell ill.

The presentation went well but it was the conversations following that stuck with me. In short, I was rocked by the complexities of the industry and the challenges faced by these entities. iacpconferencephoto1-520x346Associations have always been “up against it”. All share certain issues. After working with four associations in the past two years, we have discovered the following:

Cost Not a Benefit: in many cases, members join to maintain accreditation or there is a penalty for not keeping membership but not necessarily claimable upsides.

The “Nonprofit” Label: it suggests a softer culture, less talented employees than the private sector (but stronger than the public sector!), and lack of depth and sophistication in leadership, management and planning. Let me be clear…this is perception not reality.

Overlap: one only has to look at the marketing and advertising industry to see that an agency in the United States could belong to easily over twenty different associations. Imagine being a retailer or in healthcare and that number is many times higher. This makes it important for associations to differentiate. When you think about it associations are competing against every other association out there and be held to the standards of the best. Also note there are associations for every conceivable group in the world…there are even several associations for associations!

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The High Cost of Poor Business Writing

Hello dear reader. It is important for you to know that I labored over every word in this post. Oliver Wendell Homes said, “carve every word before your let it fall.” For tone-of-voice I strove for “friendly academic and passionate advocate”. Then I asked, “What do I want the reader to remember?”

I love to connect with people through writing. I do a great deal of business writing and have been encouraged of late. This skill and practice is under scrutiny. Its poor quality leads to inefficiency and ineffectiveness. I am encouraged because we are beginning to recognize the magnitude of the problem.

Josh Bernoff recently wrote in The Daily Beast a piece titled, Bad Writing Costs Businesses Billions. Bernoff has been a writer for 30 years and just published, Writing Without Bullshit: Boost Your Career by Saying What You Mean. The article grabs with an amazing statistic. It seems that bad writing is costing American businesses close to $400 billion every year. That is a staggering number.

Bad writing is costing American businesses close to $400 billion every year.

Bernoff writes, “Think about it. You start your day wading through first-draft emails from colleagues who fail to come to the point. You consume reports that don’t make clear what’s happening or what your management should do about it. The websites, marketing materials, and press releases from your suppliers are filled with jargon and meaningless superlatives.” The last sentence resonated with me. I am on a mission to ruthlessly, creatively and intelligently improve my own writing. This is a demonstration for to do the same.

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Narrative Psychology in Brand Storytelling

Let me tell you a story. It’s a bit about our past. A bit about our future but more importantly, it concerns what is happening right now. It is also a story that nears 2,500 words because our complex world cannot be dumbed downed, reduced to a vague tagline, summed in a 140 character tweet, or captured in an oversimplified to-do list. True learning and understanding requires time and effort so heat the kettle or uncork a bottle and enjoy.

Marketing and advertising agencies claim to be professional storytellers. Methodologies at agencies deliver a brand story as part of engagements. Creative briefs bring the story to life. Agencies pump out papers on the subject and profile case studies where the story is key to client success. Within the industry, marketing conferences make room for storytelling as part of the agenda. Media and publications write on the topic with frequency. Storytelling permeates the profession.

Still, storytelling is constantly critiqued. It is viewed broadly as integral, over-used, irrelevant, or even dead. Storytelling is constantly evolving in interesting ways. Here are three changes taking place in business storytelling:

They Don’t Tell: by its very definition, storytelling is broadcast in nature. We tell a tale. It is ‘one-to-many’ like the Mad Men era of advertising. We know that no longer works. Stories must now invite consumers in and let them be both character and storyteller. It is now about storyparticipation not passive absorption.

They Are Organic: the best brand stories take root organically and get consumers involved. Then they really evolve. This scares traditional marketers. They fear ceding control. Still they control context and that is critical. Context provides the story’s framework. Granted it is a bit of a wild ride when consumers help build the story but this is what is taking place with Uber and Airbnb and has taken place with Apple and Red Bull.

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An Ad Agency Tipping Point

Starting any business is a bold move. Not all survive and few truly thrive. Those that do face the challenges of managing growth and staying true to what made them successful in the first place. This is an interesting tension that I recently discovered in working with four advertising agencies.

These businesses had grown to 100 or more staff. Of course, that metric in, and of itself, is not an indicator of sustained success. The good news is the agency leaders know that. In fact, these leaders were concerned because interesting things happen when the payroll hits 100. Here are some issues that arise:

  • Agencies of 15 or 30 or even 75 employees possess a start-up or boutique feel. When you hit 100 this weirdly begins to dissipate.
  • You don’t know everyone any more. Small agencies talk of being saatchi-saatchi-office-funkt-1“family” where everyone has each other’s back. While a strong culture can keep this rolling as staff size grows, it cannot mitigate the realities of being larger. This is compounded when they open up other offices.
  • A bigger payroll and presence prompts new business pressures. This can mean chasing the wrong work to keep the machine humming.
  • Founders and principals move from client service oversight to functional roles. Marketing, people, service and product development and other areas need full-time leadership. This transition can be bumpy and skill-sets are stretched.
  • Specialisms and differentiators begin to lose their luster. You simply cannot make the same claims. Being “nimble”, as an example, gets called in to question.

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