Category Archives: optimization

Maximising marketing efficency. It’s the old strategic v. tactical debate again!

had an interesting discussion with an agency founder the other day that reminded me why I started The Full Effect Company and took to championing the “integrated” cause.

When I set up The Full Effect Company my proposition centred on marketing communications rather than marketing, but while my horizon has broadened the same principle holds true.  When you really get down to business, its efficiency, nothing more or less, that separates success from failure.

And that’s what integrated marketing is all about – getting every element of a business pointing in the same direction.  In the area of marketing communications the elements operate on two levels – strategic and tactical.  Strategic is about building your community, making your customers feel at home and comfortable so they stick around, spend more time (and money) with you and even help you add members (customers).  Tactical, on the other hand, is all about short-term, prompting actions, introductions, sales. (over-simplification I know, but I’m talking to people who know this anyway, so I don’t need to state the obvious)

The thing to remember in all this is that while the influence of strategic communications can only ever be long-term, tactical communications will always not only constitute a call to action, but have a strategic influence as well.  Its unavoidable.  It’s there in the style of execution, the language and the graphics you use. Ignore it at your peril because it will go on working anyway and if you don’t manage it, it could actually be undermining your message and neutralising the investment you have in it.  On the other hand, when the tactical messages support aspects of the bigger strategic idea the relationship become synergistic.  If you make the most of the strategic element within your tactical communications you’ll increase your efficiency significantly and get a whole lot bigger bang for your buck.  And that’s where I started my Full Effect Marketing mission to increase my clients’ efficiency.  I’ve moved on a bit since then, but it’s still the fundamental principle behind all that I do.

While I see increasing evidence that businesses are understanding and exploiting this principle, there’s still a long way to go and it’s certainly not just the small guys who need the lessons.  The friend I mentioned at the start of this piece and I both had first-hand experience of major international organisations with problems that were symptomatic of them forgetting this basic strategic/tactical rule.

A while back I was called into a series of meeting with a major telco who were complaining that they weren’t getting value from their marcoms investment.  They had a strategic message that was getting more woolly by the day and were investing heavily in creating numerous short-term campaigns from scratch each year.  Their problems were two-fold.  Firstly their tactical campaigns were always short and very expensive, so they never had the opportunity to really get up a head of steam and fully repay the investment made in them.  Secondly the tactical messages were so diverse and disconnected from their strategic message that they were not just missing the opportunity for synergy, but sending out confusing, if not contradictory messages that just muddied the water.  This in turn meant their relationships with their customers (Brandships) weren’t as strong as they could be. Yes, it was all very inefficient.

Sadly, while they didn’t disagree with me, the remedy I suggested had political implications that they just weren’t prepared to contemplate.  As is often the case, I was talking to the marketing department and my solution suggested both a change of process and structure and a reduction in head-count, a suggestion that echoed rather hollowly inside their ivory tower.  Oddly enough my friend had a very similar story from a different sector.  Needless to say, faced with an impasse like this my relationship with this telco was short, but by way of my vindication, they were reported in the press last month as having exactly the problem I defined for them, so the cracks are now plain for all to see.  You would think it would be back to basics for them then?  However, I’m not expecting the phone call any day soon!

The key to this kind of efficiency lies in what I call the Brand Model. In the case of my Brand Discovery programme, this is a definition of a brand using eleven parameters, including a promise and a considered set of facts that make that promise credible. If once you have a Brand Model in place you assess every planned initiative in the context of its contribution to or reflection of the promise and these support facts, you’ll not go far wrong.  In the context of your marketing communications this should result in campaign elements with tactical messages that hard-underline one of the support facts and place it in the context of your strategic message.  People who are really good at this are Tesco in the UK with their tactically led messages that culminate with their strap-line “Every little helps”. Philips Electronics’ “Sense and Simplicity” which not only translates back to their product design briefs but results in advertising where the “sense” and “simplicity” are always demonstrated (and these words quoted religiously in headlines and body copy) and to a lesser extent Specsavers’ “I should have gone to …” message.

Until more businesses focus on squeezing the maximum strategic benefit from their tactical initiatives and messages and thereby achieve full efficiency, it’s hard to justify, in these cash-strapped times any purely strategic initiatives.

Getting public sector efficiency off the ground.

soutwest-landingI’ve been in the UK recently, among other things dabbling in the Public Sector and with never before seen pressure on public spending it should be a particularly interesting time to be hanging around the black hole into which our hard-earned is pitched, but is it – interesting that is?

A recruiter friend of mine told me this week that his firm is busier than ever right now handling briefs from the public sector, which he assures me is falling over itself to adopt a private sector mindset.  Discounting for a moment the fact that we have heard this before and putting aside the obvious need for the struggling recruitment sector to give a positive spin on recruitment opportunities, as a UK taxpayer, I find this news encouraging, but if the public sector is to undergo the kind of culture change it must, there is a long way to go.  The dilemma is, where to start.

I know that there are success stories, but there’s no doubt about it, the public sector generally really does need to get down to business.  Among other things it seems they have been slow to realise that the difference between success and failure in any sector is efficiency, but even when the penny drops, there’s confusion in the ranks between efficiency and bureaucracy or systematisation which, as any private sector chappy knows, are different things entirely.

Without fundamental efficiency, little else counts, but in order to measure efficiency, you have to start with a clearly-defined objective to aim “efficiently” for.  And in my experience its right here, at the very first step that things usually go wrong.

Despite the progress that has already been made in some areas, the public sector’s greatest impediment to what we private sector jocks would consider best practice, is its own culture.  Like all big organisations, the sector discovered early on that the easiest way to make things happen consistently on a large scale was to bureaucratise and, in a short-term sort of way, it worked for a while, but as commercial organisations worldwide realised pretty quickly, long term, bureaucracy is a recipe for disaster.

The Communists in Central and Eastern Europe, kept things running for a while by giving people in every area of life step-by-step instructions on the minutiae of their life (A bit like Labour have done in the UK, come to think of it), leaving nothing to chance and preventing anybody from using initiative.  Its an idea that might fly provided the dictators are smart enough to predict every possible eventuality and legislate for it, but the reality is, nobody’s that smart and we couldn’t possible hope to envisage every eventuality, so ultimately the system breaks down at the first sign of something unexpected.

However, even that doesn’t necessarily spell curtains, provided the people at the sharp-end have the initiative to respond to the situation in a way consistent with the overall objective.  But there’s the rub.  Having created a community where you could leave your brain at home when you leave for work each morning and not realise until you came home and had to turn the video on, it stands to reason that the people who make it their home and settle in for the long term are those who aren’t really that good at the initiative thing.  I could expand on this thought, but it would take for ages and I think we are probably on the same page already.

I’m not suggesting that there’s no place in a modern business for processes.  Of course we need them, but we equally can’t afford to be totally reliant upon them.  To achieve efficiency these days requires that operators at every level of the organisation are smart, have the initiative and are empowered to apply what they know, equally to both predictable and unforeseen situations.  Migrating to this point from a bureaucracy doesn’t happen over night for any organisation, but the (some might argue unnecessary) scale of most public sector organisations makes it a daunting task for them.

If you get the opportunity, as I have, to talk to the people who are supposed to be making strategy and setting objectives – our MPs and senior civil servants – you would find that intentions are as admirable and awareness of issues is as high as you will find in the best-run commercial organisations. The initiatives that they launch however, because of the weakness of the bureaucratic process, become ineffective and inefficient at the point of delivery.  That’s why we get situations such as that which I heard of where a guy responsible for the web site intended to drive private sector involvement in a government scheme was adamant that it was inappropriate to have a proposition on the home page because it ” … commercialised the subject …” and in his world (wherever that was) social isues should not be sullied by the “C” word.

I have also recently come across a public sector new business leader and a sales team actively chasing sign-up targtes for a programme that there was no resource to deliver and another where targets for a three-man “sales” team required no more than one sign-up between them every two days when more than that were already walking in the door every day!  I have also just seen a business plan that by its own analysis was fundamentally un-executable. Room for efficiency improvement I think!

The problem is everyone is working to different objectives.  For example, the web guy sees the role of his organisation as being to enrich people’s lives rather than to drive business growth.  The new business guys see their task as being to get as many meetings with potential clients as possible and the sales guys are chasing a sign-up target with no thought to resourcing or what happens when they achieve it.  The bottom line is that programmes fail on every level, leaving disillusioned stakeholders in their wake and wasting sheds-loads of taxpayers cash.

There are two things missing from this picture.  One is a Brand Model that clearly defines the organisation’s philosophy, character and what they are there to do, neatly summed up in what I call the Brand Promise.  The second is an internal marketing programme designed to ensure that everyone in the organisation understands and is on-board with the objectives, equipped and fully committed to playing their part in the delivery of the Brand Promise.

One of the founding principles of Full Effect Marketing is that an organisation will only maximise ROI when a proportion of their marketing investment is diverted from making a Brand Promise towards the task of delivering it.  That’s an internal marketing strategy and I have created more of them than I care to remember.  Its not particularly difficult and, because my approach involves key employees in the process, just going through the strategy development starts the paradigm shift.

Organisations that do this well are people like Southwest Airlines, who prove that its not just a marketer’s latest plaything by succeeding dramatically on just about every measurable commercial parameter.  Happily, we now have consensus that its the only way to go, so, as a UK taxpayer I’d like to see our public sector jump on this particular band-waggon post haste.

If anybody from the public sector is listening (yes, I know, but I’m an optimist!), I’d be happy to help out with this particular cause.

The Brand as a Medium

Full Effect Marketing is all about efficiency, getting extra bang for your buck, stretching budgets, better ROI and for years I have been introducing my clients to the power of a well developed brand in the shape of revenue-generating partnerships. It’s not always going to finance a space shot, but as one of my favourite brands would say “every little helps”.

This is nothing new, of course “The Brand as a Medium” has been around for years. The stuff of loyalty scheme operators, supermarket retailers (where there’s far more appreciation of the concept of brand community anyway) web marketers and a few clued-in consumer brands, but it strikes me that it’s a concept that’s finally coming of age.

I have had conversations recently with a clutch of media owners about the potential of their brand communities. It seems they are all beginning to view themselves as integrated communications consultancies – a no-brainer in my book, but an opportunity that is really nowhere near harnessed by the owners of these brands – and mobile operators – folks with the same kind of opportunity, but far greater entrepreneurship, who are my tip for the next owners of this “space”, a space that, unlike the modest returns that some brand owners might settle for, knows no limit.

Talking of space, its all there in Jim Taylor’s “Space Race” and you don’t even need to read between the lines. Jim was quite clear that media owners would come to represent a real challenge to advertising agencies (remember them?) in the race to establish an integrated marketing model with a consulting approach, which you’ll not be surprised to hear is just how I feel it should be. Its not that traditional media are redundant, its just that with an ever-widening range of communications options and a growing understanding of what marketing is really all about, they take on a different relevance and we are using them in different ways.

I guess The Brand as a Medium was seeded in retail marketing where the brand over the door provided a showcase for the brands on the shelves and the key lesson, which remains the key to new players, was quickly learned – The company you keep will reflect on perceptions people have of you (your brand image). We’ve all received a warning at some time that someone might be “a decent sort of chap, but he mixes with some weird people”. A prestige retail brand stocking inferior product brands will quickly be relegated to the same league as its suppliers. The converse is also true of course – a social-climbing brand can gain a little lift by being seen in the right places. Again this is nothing new to fmcg manufactureres, but it applies equally in any sector. When I was at Saatchi & Satchi (the original and best) we often had organisations in crisis offer to give us their business because they knew that the announcement of the partnership would tend to buy them a little time from their creditors or even give their share-price a filip – hey, the good old days!

Supermarket retailers have in the past been the closest thing their suppliers could find to an integrated marketing communications solution. An fmcg brand could appear in the retailer’s advertising, door drops, DM pieces and TV spots, be a feature of in-store demos, in-store radio and TV, appear on floors, check-out conveyors, staff T-shirts, till receipts and more, all before the customer even arrived at the point-of-sale (Unilever call it “The path to purchase”). A communications solution like this is high value because the target is narrowly defined but people like Tesco took the definition even further with their data-rich Clubcard scheme. Integrated marketing like this builds relationships between all stakeholders, provides incremental sales for suppliers and additional revenue for the retailer. The good news is that any organisation can play in this space.

If your brand community is tight and loyal other brands will pay to mix it with you and yours. They know that the invitation alone is worth a premium because community members will at least give them a hearing, but be picky about who you invite – you can’t issue ASBOs to unruly guests and their behaviour will always impact on your credibility for better or worse.

Its an area that fascinates me (My retail heritage I guess) so for those of you who are suddenly intent on fully leveraging your brand I’m always up for a discussion on the subject. Meanwhile here are my top five pointers to success.

  1. Understand what “community” means
  2. Know your community members (customers, distributors, employees, advertisers etc.)
  3. Beware who you invite over (esp. partners, advertisers, contributors)
  4. Be sure to give value to everyone
  5. keep a grip on what you stand for (but understand that your community will continually evolve).

Welcome to the world of integrated media solution ownership!

Making Optimisation work

datawarehouseedit.jpgThere’s not a business in existence that wouldn’t claim to be working to improve efficiency.  After all, it’s been many years since the last penny dropped in the final boardroom and every one accepted that business success is measured in degrees of efficiency.

However, the one area of business where attempts to improve efficiency have been late coming is marketing.  The reasons for this are far too many to go into here, but I’m happy to discuss them at another time.  The point however is that because marketing is now the biggest element of pretty much any business model it’s a situation that can’t be allowed to continue.

Recognising this, organisations everywhere are introducing measures to increase their marketing efficiency.  We have fortunes being invested in market modelling, similar sums dedicated to brand development and communications spends sliding quickly below the line where cause and effect are more readily measured, but we are still not seeing the kind of efficiency we’re going to need as we move through the twenty-first century.

The reason for this is straightforward enough and although nobody would say it was a simple matter to put it right, fix it we must.  The fact is that marketing optimisation can’t be addressed solely at the marketing communications end of the marketing process. This may be where most organisations focus their attempts, but at best it’s papering over the cracks.  Optimisation requires that a number of organisational and cultural issues, marketing communications (both message and medium) being just one of them, are addressed at once and for most organisations that has been just a bridge too far – until now that is.

With the tools and resources at our disposal we can piece together an end-to-end, all-embracing marketing solution that any organisation can buy into and which will deliver the ROI that we always knew was possible, but were never able to realise. What’s more we can combine that with a process that fixes the internal issues and improves front line performance at the same time, so it’s a faster and more meaningful solution.

This is the principle of optimisation working on a tangible level.