Nov 9, 2022 | Change, Governance
November 2022 is the 33rd birthday of what may be the most important month in recent history, November 1989.
A momentous month.
It saw the fall of the Berlin wall, the beginning of the end of communism and the soviet empire. We met that occasion with such hope, optimism, and a sense of relief that the immediate problems facing a Germany that needed a second reconstruction were pasted over. Slowly the optimism for the future of the now ‘free’ countries that broke away from the USSR has eroded, as the kleptocrats took power, and the spoils of previously state owned enterprises fell into a few select hands. It is the determination to extend the power and hegemony of that group that has led to the war in Ukraine.
The second momentous event that month was the completion by Tim Berners-Lee of the genetics of the web. Hypertext Markup Language (HTML), the formatting language of the web, and its siblings, URL, the unique web address and HTTP, the process of retrieving linked material from across the web.
These two events generated the drivers of the geopolitical face of the world, the way it communicates, does business, and governs itself. In short, they shaped the world we currently live in.
The commonality between these two momentous events is the simple words ‘democratic capitalism’
The economic battle between states, capitalism winning out over communism, and democracy winning over despotism. Suddenly we had freely available all the information and resulting transparency we could possibly need to live in some semblance of harmony.
Both have been proven to be false gods. The harmony and balance we sought has been comprehensively thrown out.
The power of the web has been weaponised and turned on us in ways inconceivable 33 years ago, and we have yet to develop an antidote. While this has been happening, the kleptocrates have exercised a level of influence and control the Stasi could only dream about, and led us into another war in Europe. As Einstein noted: The significant problems we have cannot be solved at the same level of thinking with which we created them.
Sadly, this is what we continue to do.
Photo credit. The header photo is of a nuclear explosion, one of which France set off on Mururoa Atoll in November 1989. Another event in a long list of what made that month a pivotal point in modern history.
Nov 7, 2022 | Branding, Marketing
Imagine you are faced with the task of joining two pieces of wood.
What information are you likely to need before deciding how to go about the task?
How big and important are the pieces, are they structural weight bearing, is the joint going to be seen, will the choice have a knock-on effect, what is the most efficient joint?
The point is, you need that information before you can then decide how you go about the joining. Do you nail, screw, glue, combine rebate glue and screw, countersink the screw? Without the contextual information, you cannot make an informed decision that will give you the best outcome.
Sometimes this is easy, instantaneous, other times it will require more time and research to get the right answer.
Figuring out your marketing programs is no different.
How are you going to allocate your limited resources across all the possibilities that face you?
Marketing has only one purpose, to generate revenue and resulting margin. Sometimes it is revenue today. Sometimes tomorrow, next month, next year, next decade. If you cannot see a connection between the marketing activity and future revenue, stop now!
The challenge is to know enough to ask informed and intelligent questions and be able to separate the bullshit from the good answers.
This ‘marketing game’ is full of sellers of new shiny toys that are ‘guaranteed’ to be the answer to all your commercial problems, delivering you rivers of cash.
In order to help you separate the bullshit from the reality, there are four questions you can ask to do the separation, which will assist you to see the connections to revenue.
They all are interdependent, none by themselves is of great value, and together they are a powerful way of thinking about your business.
The 4 seem simple at first glance, but in reality, are very complex questions, that in combination will give you the beginnings of an answer. The rest will come with experience and domain knowledge.
- What problem can I solve for a potential customer, or put another way, how do I add value?
- Who is my ideal customer?
- How do I apply maximum marketing leverage?
- How do I make a profit?
When you have the answer to these four questions, you are ready to spend some money.
Not before.
However, once answered, it is never enough to stand still and think the answers tomorrow will be the same as today, and that the answer today is the ideal one. Business is iterative, you learn from doing, experimenting, doing it better next time. It is an evolutionary process, so long as you are careful not to bet the farm on a dud horse. These are all connected to each other, one without the other is of less value, and the impact of answering them all well is not just cumulative, it is compounding.
These four factors, and all the lesser things that hang off them, are compounding.
The twist is that they also compound in reverse, so you must be prepared to try things, but get them off the table quickly when they do not work.
Let me know when I can help.
Header cartoon credit: Tom Gauld www.tomgauld.com
Nov 6, 2022 | Change, Customers
Who will miss you when you are gone?
That is a question I often ask clients as they contemplate challenges such as the profile of their ideal customer.
Last week I was gone. Laid low by flu such that for the first time in the almost 15 years of writing and posting on StrategyAudit, averaging 2.5 posts a week, there was nothing.
Nada.
Part of the logic of regular posting is that those who follow you get used to a regular communication, it becomes part of their day to absorb the messages sent. Break the pattern, and you risk losing their almost automatic attention, and once lost, it is a hard pattern to re-establish.
Fair time to ask the question of myself, I thought.
Should not have done that, the answer is a touch depressing.
While StrategyAudit is little more than a pimple on the arse of the blogosphere, I did think there would be a few who missed the experience on strategy, marketing, and business improvement built up over a long commercial career that I put out there.
One person emailed me to let me know a link in a recent post was broken, and one other who I know quite well, rang to accuse me of ‘retiring’ without telling him.
There was the usual level of traffic to those existing posts that typically attract readers, mostly via Dr. Google, but often via referrals, which you can easily pick by the sudden peak of readership.
‘Who will miss you when you are gone’ remains a great question as you contemplate the investment made in marketing. It does pay however to have a thick skin as the answer may not be what you had hoped.
Oct 28, 2022 | Customers, Marketing
The J. Walter Thompson advertising agency is one of the prototypes for the ‘Madmen’ of advertising, the architype of the explosion of consumer advertising that occurred in the sixties.
The agency was started by James Walter Thompson in 1896, when the ‘advertising’ function was nothing more than a brokerage service for selling space in newspapers.
Advertising in those days, well before even radio and consumer magazines, had only newspapers as their communication medium. It slowly expanded into creating the ‘advertising product’ to make selling the space easier into the expanding range of communication options, all on commission.
Simple days.
Most success relies on simple things, breaking down the complex so they are easily understood. So it was with advertising in those early days, before we were blasted by ever increasingly complex offers and intrusive psychological hooks to sell us more stuff.
It is often useful to go back to these roots, to see what made for success early, what were the simple things that worked.
The ‘Thompson T-Square’ is one such tool in copywriting.
Every successful copywriter used it, a few simple questions to focus the mind on what was really important as they wrote the copy. At J. Walter Thompson, it was pinned to the wall of every copywriters office.
What are we selling?
To whom are we selling it?
Where are we selling it?
When are we selling it?
How are we selling it?
Simplistic yes, but also effective, and leading to the ‘four P’s’ of marketing, articulated by E. Jerome McCarthy in 1960.
Those simple questions lead to the consideration of the most effective articulation of value to the ideal customer, who would be receiving the messages in a manner that made them comfortable, and receptive to the idea of a purchase.
So, the simple answer to the question in the header is ‘Yes, every day”, it still works!
The header is an 1868 portrait of James Walter Thompson, courtesy of Wikipedia.
Oct 26, 2022 | Customers, Marketing
We live in complicated times, none more disturbing than the now regular breaches of data privacy and subsequent risk to the financial and personal security of individuals.
The recent spate of data breaches is probably just the beginning, but we, the general populace in the absence of any deep technical knowledge about data security, assume that those who collect our data do so for good reason.
Silly us!
This should never, but it seems always does include, ongoing marketing, and selling of personalised data, even well after we cease to be customers.
I have been a customer of Optus since their first days. I switched the day there was a competitive market born in 1993. They have all my communications business, which may be chook feed to them, but is a substantial hole in the monthly household budget.
The best Optus can do in the face of the breach, presumably enabled by minimum level investment in security, is send a form letter, full of assurances that all will be well. However, if we want to phone them, here is a number, but there might be a wait.
While the letter was addressed to me, at my residential address, the header was ‘Dear Customer’. They know my name, email, and phone numbers, and certainly can aggressively ensure bills are paid, so no detail goes unnoticed.
Surely Dear Mr. Roberts instead of Dear Customer would have been easy?
It might have been sensible for them to also list the services I hold with them, and give a risk assessment of each? Perhaps I do not deserve such a level of transparency?
Then, the signoff:
‘Sincerely. Your Optus team’.
No names, not even a duplicated signature of the cleaner, let alone anyone on a huge salary who might be taking any responsibility for this marketing clusterfuck.
I guess I will have to bite the bullet and change, be a part of the great communications customer churn. These nignogs spend tens of millions tapping into this churn, rather than shoring up the customer base they already have and reducing the churn. As an advisor to SME’s my advice is to cherish your existing customers, particularly those who are unlikely to change, even if just for the avoiding of the inconvenience involved.
When your business faces a crisis brought about by external factors that will impact customers, rule number one is be up front, take responsibility, accept the shortcomings that led to the crisis, articulate a recovery plan, and most importantly, personalise it to those affected.
Optus has done none of those things.
I am glad my super fund that also hides behind barriers I struggle to breach, does not hold any Optus shares. Presumably it is unable to given Optus is 100% owned by a Singaporean billionaire. Is this ownership, and the key place Optus holds in the communication infrastructure of this country a part of the problem?
