Governments and marketing

The current Australian government has a marketing problem. 

Their other problems, trouble with the hung parliament, zealous credit card expenditure by MP’s, inability to out-communicate the drivel of the opposition, a rebellious electorate, a failed “moral Imperative” and others, are just the symptoms.

Every useful marketer knows that success depends on a relentless focus on clearly articulated longer term goals. When focus is allowed to shift to the crisis of the day, from the “main-game”, whatever that may be in your circumstances, to responding to the day to day, the marketing effort fragments and stumbles for lack of a solid foundation.

The problem with this Government, and the Opposition as well,  is a lack of any long term goal the electorate understands beyond their selfish objective of retaining/gaining power, and if the electorate cannot buy into the government of the day’s priorities for various reasons, they at least understand the “why”, as a process of explanation has occurred.

Generally the pundits say the Government has a communication problem, but it is much deeper than that, they have no idea of what it is they wish to communicate beyond the press release of the day that they hope will dose the fire started yesterday. They have a fundamental strategic marketing problem, not just a communication problem.

Brand loyalty a two way street.

I have been having trouble with bloody Optus, again, my exclusive supplier of communication services. They simply cannot seem to get anything right, clearly the left hand has no idea, and I suspect do not care what the right hand is doing. Their customer service does not talk to their accounts who will not talk to their technical service, who do not talk to their retailers, a real dogs breakfast.  Frustrating in the extreme.

Yesterday, I got another call from some young bloke in their call centre, reading from a script telling me how he had a great deal for me because I was such a loyal customer. Pity they are not a loyal supplier!

How good would it be if they actually did care, and showed it by any one of a number of means at their disposal to make my digital  life simpler, cheaper, better integrated, more transparent, and easier to manage. Allocating obviously anglo names on their call sheet to those in their call cantre whose first language was English seems a pretty logical step.

Loyalty runs both ways, and those very few businesses that make the effort to act in their customers interests, rather than just their own,  usually do pretty well. There are the big ones we all know about, but there are also small businesses around that make it easy, pleasant, and “human” to  conduct a transaction, so you come back for another  one, again, and again.

Customers are always looking for a better deal because that is all that these dills have left them. If any of the telcos reduced the customer churn by 0.5%, a seemingly modest target, they would be way in front, because they could reduce advertising and re-contract costs, cross sell more easily, and reduce their “service” costs by doing something right first time. 

Genuinely caring about the customer experience, being a bit loyal to their customers seems a pretty good way to start, a customers loyalty to a brand needs to be earned, it will not be given away to those who do not deserve or value it.

Lipstick on the pig

Last week I was talking to a headhunter seeking to fill a senior contract management role for which I had been recommended. I had polished up the resume and sent it as requested, and he had browsed my blog and Linkedin profile, but the conversation was awkward, filling in and rehashing the detail of my long career to the exclusion of the bigger view.

Towards the end, I simply asked him what he was looking for, and the answer surprised. His response was “virtually everyone I see who I have not met before substantially embellishes if not outright lies on their resume, I am looking for the inconsistencies”.

What a conversation stopper!.

All I could say was “what you see is what you get”. No lies, no embellishments, no credit taken personally for successes of the teams I have led, no walking away from the blunders, no lipstick on the pig.

 

 

 

Category management steroids

Data mining as it is evolving in retail is a fascinating exercise in identifying behavior characteristics that apply to very small percentages of the shopper population, and doing something with them. Progressively retailers are getting better at leveraging the data, and as the penetration of cards increases past a critical mass, so will the effectiveness of the marketing and promotional programs. Of course, consumers are well aware of this, and have well developed “relevance meters” built in.

Consider the category management of potatoes. Pretty dull stuff? no, fascinating stuff.  I am making these numbers up to illustrate the point, but consider, of 100 customers using their cards at the checkout,  perhaps 10% have potatoes in their trolleys, and 10% of that 10% have a particular variety, and of that 10% (now down to 0.1%), they also have sour cream and chives in their trolley.  Pretty reasonable guess that the potatoes will be cooked in their jackets, with sour cream and chives garnish, particularly if the shopper is single, no kids, and also buys steak.  An opportunity to offer the consumer a deal on a bottle of red wine on her way out of the shop, or in the associated retailer across the way? Multiply that by 5 or 6 million cards, and you have a pile of data to mine.

The gold standard of retailer card data mining is Dunhumby, now owned by UK retailer Tesco. They did such a great job in the development stages of the Tesco loyalty card, that the retailer bought them to keep their competitors away from them. In a move that recognises the future, Dunhumby is now crowdsourcing ideas via Kaggle, a fascinating startup that turns data mining into a competition for data nerds.

This is Category Management on steroids, and represents a monumental change in the skills needed by FMCG suppliers deal with dominant retailers. In the Australian context, very few FMCG suppliers have any idea of the power of the data tsunami coming at them, and how this will impact on their brand marketing strategies. It is also the realisation of the vision of category management the few of us who were playing with this stuff  30 years ago had when the data was warehouse withdrawals, we had a bit of U&A consumer research, and managed it all with calculators.

Technical & Creative, + the best ad of all

Today in Sydney has been about as miserable as it gets. Rainy, cold, grey, just plain shitty, and not fair for a public holiday.

What a relief it was to find a distracting way to spend the afternoon.

After watching the replay of the unfinished French Open final, assiduously avoiding any media when I “rose” so I did not know the score, I started to clean up the hard drive of my laptop, removing some of the stuff that had accumulated to clog it up.

Amongst the “random savings”,  were quite a number of advertisements I had accumulated from various sites, all of which had the common element of having struck me at some time as being enormously creative, funny, engaging, delivering a serious message, or just sufficiently different to really cut through, when flogging stuff from cars and fashion to condoms and computers. They all, in one way or another, rang my creative bell.

It also struck me that we are in the middle of a huge confluence of two enormously powerful forces, technical development, and creativity, that is changing everything. Hardly an original insight.

The technical advances of the last 15 years  have reduced the costs of technology, and the distribution of content to relatively miniscule proportions, which has opened up huge new opportunities for creativity to be seen. However, the digital media has become so clogged with content, from the great to the absolutely inane, that being seen is still the greatest challenge, so creativity remains an essential element of all successful communication. It has also offered up the opportunity to focus laser-like on a very small group of individuals, delivering a compelling message that they would have been unlikely to get in the old mass communication days. 

I cannot finish without offering my pick as the best ad of all time, at least the best I have seen.  Perhaps surprisingly, it comes from my childhood, so is a very old ad, but is a very simple execution delivering a powerful message in unequivocal terms.  Pity the companies management was not up to same standard as their communications people.

7 steps to Data Literacy.

Anyone who can read can read a Keats sonnet, but not everyone can “see” the lyrical quality, and feel the passionate introspection most have at their core. Those who can are truly literate in English poetry.

Data Literacy, a term I like, similarly implies not just an analytical capability, but also an intuitive capacity to understand the nuances and hidden gems in data, rather than just the capability to be informed by apparent outcomes.

Have you ever seen people making stupid decisions while pointing out that the data justified them?

I see it all the time. It seems to me that there should be a knowledge building chain here, rather than just a data analytical one:

    1. Gather data,
    2. Analyse data,
    3. Apply healthy skepticism to the outcomes,
    4. Gather more, preferably counter intuitive data,
    5. Pursue the trends, outliers, inconsistent data, apply informed analytics rather than statistics,
    6. Synthesis of the complex, often paradoxical information,
    7. Informed intuition, and data literacy evolves.

Not all numbers are equal, some are more reliable and informative than others, simply because they are the result of tested assumptions, and more and better informed questioning. The development of literacy takes time, effort, and resources, but is worth it.