Ad Agencies Need to Obsess About Loyalty

The company, Access Development, tracked and recorded, and recently shared every publicly available piece of data available concerning customer engagement and loyalty. They call it the Ultimate Collection of Loyalty Statistics. These data points, insights and themes are interesting unto themselves but add up to one big fat fact they did not note…any marketing business is in the business of loyalty.

I mean advertising agencies, marketing consultancies, public relations firms, market research bureaus, digital agencies, performance marketing shops, telemarketers, brand consultancies, social media marketers, media buying services, promotional material providers, influencer and celebrity marketing 200464106-001advisors…well, you get the idea. Any agency, firm or service that is in the business of marketing exists for one purpose. Of course, this includes those prescient to be specifically in the business of loyalty marketing.

The past, present and future of marketing has and will always hinge on loyalty. No company wants a one-time customer. Even businesses selling bomb shelters in the 1950’s wanted a client’s second home or to upgrade the first. Apple wants to sell customers a new cellphone every time there is a new release or every 22 months which is the smartphone adoption average.

Agencies and consultancies continue to talk about brand positioning, awareness, consideration and trial. Important stuff for sure but only the start. All efforts and spend should have loyalty as the end goal. Anything else is a dodge, a feint, a run from the real focus and fight.

Not one single advertising agency, brand consultancy, PR firm, media buyer is really talking about loyalty.

I see not one single advertising agency, brand consultancy, PR firm, media buyer talking about loyalty. This leads to churn, inefficiency, ineffectiveness and the regurgitation of the same ideas whose only result is a client’s frustration and dissatisfaction…and poor results.

Why spend money on branding and advertising if not to have repeat customers?

Let me say it again, no company wants a one-time customer. That is why marketing’s purpose is loyalty. You only need to give a cursory examination of Access Development’s aggregation to arrive at the same conclusion. We thank them for the following…and for also proving loyalty programs are a tactic not a strategy.

Read more

The Real Reason Clients Hire You

I have spent my career in professional services. From Price Waterhouse to Interbrand to DDB to now running my own agency. Over that time I have become an expert in branding and marketing professional services. At least that is what peers and clients say. To make that claim myself is analogous to me telling you that “I’m cool” or “I’m funny” or “I’m smart”. The credibility is in others saying it. Having others speak well of you is the goal of branding.

This specialty allows me to work with law firms, management and marketing consultancies, advertising and digital agencies, and accounting firms. An engagement with an investment management firm led to an insight about how and why clients truly decide on one professional over another.

screen-shot-2016-09-20-at-8-58-40-pmFor a long period we assumed that clients first and foremost chose expertise. This assumption led ad agencies to talk about themselves way too much, law firms to numb clients with superior high-minded jargon, and management consultancies to dazzle with mysterious black boxes of proprietary processes. To their credit many professionals identified this as a problem but mistakenly identified the solution. They chose to switch emphasis and focus on the prospective client’s situation.

Read more

Your Brand Story is Your Brand Strategy

So much has been written on storytelling in business that a subset of the marketing community is pushing back against its purported benefits. Yet, increasingly creative agencies big and small are specializing in helping clients better tell their story. More and more conferences are dedicated to the topic. Content marketing and copywriting professionals now fall under the umbrella of storytelling.

All of this activity is taking place with the hope that customers will identify with the story, tell it, and share it. This sounds a lot like the overall purpose of branding and IMG_4556marketing and that makes me a believer in the power of storytelling.

When it works, it really works. I am not a fan of overly simplistic stabs at business storytelling. Those attempts rob brands and businesses of what makes them interesting in the first place, namely, their depth and complexity. This does not mean everything should be “War and Peace” but it certainly should not be dumbed down to a tagline or strive for a one-word association.

I use two different constructs to help build an engaging narrative. The first answers seven questions and generally works better for B2B, professional services, and association clients. These require honest and uncomfortable answers to be successful.

  • Where do we come from?
  • Where is our world going?
  • Who are our communities?
  • What are we like?
  • How do we behave?
  • What is our purpose?
  • What is our brand idea?

Read more

Chief Marketing Officer Turnover Persists

Spencer Stuart, a global executive search and leadership consulting firm, first brought attention to the short tenure of Chief Marketing Officers. In 2004, they reported that CMO’s lasted less than two years (that number now is now four years). Spencer Stuart’s work prompted McKinsey, Bain, and other consultancies to examine the role in papers and articles. All this analysis could be Screen Shot 2016-08-04 at 9.29.27 AMboiled down to two primary reasons for short tenure: too-high expectations and poor cultural fit.

There was a fad-like quality to the early rounds of hiring CMOs. It was like CEOs looked around and said, “Hey get me one of those!” I recently interviewed Chris Hummel, CMO at United Rentals, for my upcoming book, Needs and Wants: The Universal Truths of Marketing. Chris has been CMO at Unify and Schneider Electric prior to his current position. He believes the hiring company often defines the position too broadly or may not know what they really need so it is critical to be specific in what the role is to deliver while ensuring solid chemistry with the company and fellow executives.

Executive Search consultants, Russell Reynolds, recently added to the discussion with their own report on marketing executive turnover. You can access the PDF here: RRA Marketing Moves Q1-Q2 2016 or read it below. You will find that being a marketing leader is not for the feint of heart.

MARKETING MOVES
To better understand current trends in the appointment and turnover of marketing officers, Russell Reynolds Associates tracked and analyzed 175 notable, publicly disclosed marketing-leadership moves in the first two quarters of 2016.

Key Findings

Record turnover. So far, 2016 has witnessed the highest level of marketing-leader appointments and turnover since Russell Reynolds Associates began comprehensively tracking all major appointments four years ago. In the first six months of this year, we recorded 175 marketing-leader appointments, compared to 147 in the prior six months and 134 in the same period of last year.

Read more

Ad Agencies Confuse Public Relations with Branding

Perhaps we can lay blame on the Creative Revolution in advertising from the early 1960s. That era of broadcast communications produced, on a relative basis, the largest volume of advertising we have ever seen. It is viewed as the pinnacle of Madison Avenue’s influence. At the same time, the public relations profession was having its own golden days. The masters of spin were as sought after as the martini-soaked mad men (apologies for reinforcing the stereotype).

Soon competition among ad agencies grew in the late 1960s and the phone stopped ringing. Work dried up so agencies turned to their public relations cousins for help. From the mid ‘60s on, this meant pumping out press releases and cultivating media to cover agency activities. Most of this trumpeted new business wins and awards gained at the ever-increasing number of shows. This contributed no real or meaningful differentiation especially given all agencies followed the same playbook. The biggest innovation agencies introduced in subsequent decades was hiring public relations professionals to work in-house.

TheOffice

Read more

Marketing is a Human Activity

Marketing-Jeff-Swystun

This originally appeared in WPP’s Sparksheet.

As bots become more and more prevalent, as brands take an aggressive approach to social media, and as everyone drowns in data, it’s worth remembering that successful marketing has always been about one thing only: a personal connection.

Every marketer is bombarded with overwhelming and conflicting information. Most companies (and marketers) can barely digest the data they produce let alone turn it into actionable insights and strategy. Add the utopian promise of Big Data and we have a real issue because the most sophisticated systems will never spit out a marketing roadmap. More importantly, we must never forget that marketing is an intensely human activity.

There are ever-increasing raft of studies, rankings and surveys that pelt the marketing community every day. In branding alone there are now 294 studies tracked on the website, Ranking the Brands. Most of these are celebratory lists pitting brands against each other on one dimension or another. And the tech industry is an expert at producing reports that skew towards ‘technology-as-savior’ conclusions. Add on consumer and market research studies and marketers are now buried in elephant-size data dumps.

I am a part of a team researching marketing studies for a prospective book. Our intent is to discover commonality and difference in content. One thing that we found immediately was the need to clearly understand the wants and needs of consumers. Everything else is blinding white noise. Marketers know this but get distracted by shiny new toys and theories promising better performance.

The practice and profession of marketing has never changed. It has always been predicated on human behavior. It exists to understand consumer’s motives and give them justification for making a purchase. Everything else either supports or erodes this fact.

The relationship between brand and consumer was pretty much a fair relationship until the Mad Men, mass communication era. That marked a point when brands took the appearance of control through the ubiquity of advertising. This went on for a few decades then the balance of power shifted back towards consumers…but was then interrupted by the advent of social media.

Read more

The Branding of Places

Place branding counts among the most difficult of all types of branding. Shoestring budgets and critics from all quarters put these under pressure and under scrutiny. Having worked on a handful of such engagements, I have felt both firsthand. One place brand continues to be used after more than twelve years. Chile’s “Always Surprising” was originally intended for their exports but grew into the country brand. It even ended up as stamp.

CL007-07

One for my home province of Manitoba did not have the same longevity. The brand committee selected a header we named for a category of creative work rather than one of the real taglines we authored. The strategic work was fantastic, the creative incredibly sophisticated and layered around the four seasons but the public and media could not abide the tag, “Spirited Energy”. It limped along for years but never caught on. We also rebranded the government’s image and that has been in use for close to ten years. I would have bet on Manitoba doing better than Chile but it was the exact opposite.

Read more

The Best in Cause Marketing

Swystun Communications contributed to PRNews’ 7th edition of the CSR and Green Guidebook. Our paper, Changing People’s Behavior: 8 Best Practices in Cause Marketing, is included along with submissions from JetBlue and Time Warner Cable. We cover the efforts of Uber, LUSH, H&M and Gucci. You can purchase it here and here is an excerpt on Gucci’s “Chime for Change”…

Building on the survey results and interviews, we looked at a select number of campaigns cited as best practice examples. One we heard repeatedly was Gucci’s “Chime for Change”. Robert Triefus, Gucci’s Chief Marketing Officer describes the investment, ”Chime for Change aims to realize a world where girls and women have the safety and protection they need to 1. Gucci Chime Adthrive.”

It was launched at TED and backed by celebrity endorsements from Salma Hayek and Frida Giannini. It has since thrown a mega-concert headlined by Beyonce, Madonna and Jennifer Lopez. Recently it hosted Chimehack 2, “a female hackathon to develop solutions for relevant challenges in today’s world.” Chime for Change has been lauded for directly engaging consumers using a crowd-funding platform called Catapult.

For all of this they get admirable press. Yet, outside of the fashion industry, precious few people have actually heard of it. Respondents noted that Chime for Change has fallen for two common traps in cause marketing. The first involves celebrity. Celebrities are often used as avatars for the cause and a quick way to raise awareness.

This presents a long-term disconnect as consumers may desire to be a celebrity but they cannot easily relate to them. It produces an artificial association with the cause. Second, the cause leverages big events that generate press releases but questionable results. Chime for Change is an amazing premise executed in a traditional way. One respondent said she would be surprised if 1 in 100 of Gucci’s own customers have heard of the program.

8. LUSH a little does a lot

What Marketers Need to Know for 2016

In two weeks time I will be a keynote speaker at an event titled, Foresight 2020: Setting the Marketing Agenda of Tomorrow. All content is focused on the marketing landscape in 2020. Looking out five years is a tough exercise when it is difficult even to predict one’s next quarter performance. Strategic planning and forecasting are based on process and science but any positive predictions seem more like magic these days.

In preparation for the event, I did some good old Google research. Once I had glanced over the reams of unsubstantiated ideas of where our world is going, I was left with a handful of credible pieces of work. Credible means they came from a reputable source, employed solid research, andAAEAAQAAAAAAAAYLAAAAJDI0OTIzZDk1LTQ4ZjItNDgyMy05OTBkLWQ1NDhiYTBmODRkMA arrived at substantiated insights. In all of this, I was struck by a trends and insights report from The Ford Motor Company (Ford-Trends-2016).

The PR folks at Ford boiled down the report to this pithy summary, “Ford’s new 2016 trend report reveal a renewed sense of inspiration and ingenuity among consumers striving for a better quality of life in the New Year, motivated more than ever to make the world a better place.” Lofty stuff and a bit hard to interpret until you get into the meat of the matter.

The report speaks of an “underlying sense of disillusionment” among consumers. However, these down and out people will be “more inspired to defy the odds and use innovation to embrace new platforms for change”. In reading the report, I was surprised by the ambitious response it suggests will take place. Ford believes there is a coming combination of “technology, sustainability and collaboration” that will “help create solutions to improve how consumers live, noticia9881hwork and even travel in the future”. Of course, we have to note that Ford has its own agenda and it does not take a marketing degree to see that this preamble serves its purposes rather well.

Still, this underlying sense of budding optimism is worth noting as is the upending of traditional ways of thinking. The report notes that, innovation and technology will continue to rapidly transform culture and consumer behaviour. What follows below are the chief findings with my commentary on what it means to marketing.

Read more

Why Most Brand Launches Fail

This piece originally appeared in Brand Quarterly.

In the old days of branding, and I am talking of just ten to fifteen years ago, there began a very predictable playbook for launching a corporate brand or rebrand. It borrowed a great deal from traditional public relations. It called for some combination of a press release, an unveiling of a new logo at a largish and often garish event, a fresh website, and a mousepad for each employee. Not much has changed in the interim except the mousepads have been replaced with coffee mugs or USBs.

Make no mistake, a brand or a rebrand is a deep, invasive and jarring intervention in the life of a business Needless to say, this is all very vacuous, fleeting, often expensive, and delivers limited real results. Make no mistake, a brand or a rebrand is a deep, invasive and jarring intervention inWhy-Most-Brand-Launches-Fail-Q1-1 the life of a business. If a company discovers it needs branding, I equate that to a serious call for help. Yet, most continue to launch brands in the most predictable and pedantic ways. It is analogous to conducting complicated surgery and then immediately throwing the patient onto the street. Here are the reasons why the approach is wrong:

Read more