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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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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Top-Drawer Business Books of 2016

Too many business book lists are narrow in definition. As Robert Weider said, “Anyone can look for fashion in a boutique or history in a museum. The creative person looks for history in a hardware store and fashion in an airport.” The Top-Drawer list is less traditional. That is why the list includes, and is sometimes dominated by, books not categorized purely as “business”.

We always avoid books promising four-hour workweeks because they are fables, over-simplified and prescriptive how-to works that are vacuous and dangerous, and so-called inspirational books that are trite, lite and ineffectual. These are all tossed aside when one experiences the blunt adversities found in actual commerce.

There are no shortcuts or magic panaceas in business. We have to do the work even when reading. As John Locke stated, “Reading furnishes the mind only with materials of knowledge; it is thinking that makes what we read ours.” We encourage you to read the selections here and make the knowledge yours.

The list includes books released in 2016 that are top-of-mind, notable, relevant, well written, applicable, thought-provoking, and innovative. Our last bit of criteria makes the selections tougher to determine and that is timelessness of content. We love sharing the Top-Drawer list because so much of success in business is predicated on great storytelling and these selections exemplify that skill.

This year 13 make our list and are presented in no particular order. For the first time, fiction efforts are included for the amazing lessons they carry if one is open to the education. For fun, we have included a separate list of 8 timeless business novels.

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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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The Reason Ad Folks are Unhappy

In the Mad Men television series, Harry Crane of Sterling Cooper helps out Paul Kinsey, a former colleague. Kinsey lost his copywriting position at the agency and went on to successively fail at McCann, Y&R, K&E, and B&B before going in-house at grocer A&P. When that didn’t work out he joined the Hare Krishna.

Crane is largely an unsympathetic person but he shows empathy for Kinsey. Crane says to Peggy Olson, “Don’t you know how lucky we are?” Crane cannot believe his hare-krishna-diner-mad-men-640x448own good fortune in the agency world. This episode and much of the series examines those in advertising who make it and those who do not. Mad Men beats up the profession while simultaneously aggrandizing the ad world.

The show profiled tensions and issues that persist to this day. A big one is employee morale. CampaignUS recently shone the light on growing unhappiness. On October 24, 2016 they published their 2nd Annual Morale Survey.

It found that nearly half of agency employees suffer from poor morale. Forty-seven percent of employees rated their morale as either “low” (31%) or “dangerously low” (16%). That is up 36% from the previous year. As alarming is the fact that 63% of those claiming poor morale were actively job-hunting. One assumes that means not switching to another agency.

On the same day (a cool coincidence) Advertising Age published an article titled, These Are the 50 Companies Creatives Would ‘Kill to Work for Full Time’. It covered the survey conducted by Working Not Working. Twenty-four of the fifty companies identified were not agencies.

Creative folks would much rather be at Vice, Spotify, Tesla, National Geographic, or Nike over McCann, JWT, Leo Burnett, Y&R, or Ogilvy.

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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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100 Staff: An Advertising 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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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.

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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.

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Social Media Officially Failed on February 7, 2009

I often joke with clients and audiences at conferences that social media officially failed on February 7, 2009. It is a completely arbitrary date. My point is, around that time it became clear that the promise of social media would go unrealized. That promise being that social media would be premised on conversation.

Instead what happened is brands and their agencies feared lack of control over dialogue. Ceding that control to customers was a scary idea. So they reacted by using social media as just another broadcast tool. They fell back on their comfort zone as in television, print and radio. Years later this persists.

This is not to say brands are shying away from social media. In fact, Forrester predicts $16 billion in spend in social media by US marketers alone in 2016. Lithium, the owner of Klout, that tracks social media influence, commissioned independent research firm ComBlu to take a look at social media. According to their site, “Combining hard numbers with human analysis, the State of Social looks at eight industries and 85 Fortune 1000 companies to determine how strategic and effective brands are across their social ecosystems.”

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Before we get to the insights it is important to state that though I am on Klout, I am not sure of its ultimate value. An aggregate score based on my social media activity has not caused me to alter anything when it comes to social media. And it is clear this report has an agenda and that is to further advance the idea that influencer marketing is valid and works. Social media was always intended to be an egalitarian grassroots tool. Obviously some will attract more followers than others but that should be based on their value and relevance rather than by a campaign using brand dollars.

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