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What’s next?

October 2

Shift in the advertising power base

After years of anticipation – the shift from traditional to digital is becoming real. The UK became the first major economy to achieve this milestone – according to the Internet Advertising Bureau of Britain. Internet ad spend accounted for 23.5% of the British advertising market . Print was still in first place, with 30% of the market, but had recorded steep declines.

As the internet begins to replace print as the primary source of consumer news and information, as well as encroach upon television as a deliver vehicle for info-entertainment, this trend will only continue to be more exaggerated.

The industries recovering from the global economic downturn will demand measurable channels in which to spend their marketing budgets. Internet has an inherent advantage around measureability – although solid practices enabling this are still in its early stages . As he internet transitions into the central medium around which overall marketing campaigns will be based, digital marketers will be tapped to deliver robust strategies to lead the marketing initiatives within their organizations.

posted to: Digital Marketing, Digital Strategy, Web 2.0 & Social Media | No Comments »

September 28

Visualizing Strategy

by Brian Gillespie

Connect the strategy to design dots!

Designers partnering in business strategy formation bring many fresh tools, techniques, and perspectives to the process. From methods for gathering information, forming insights, generating ideas, imagining concepts, validating concepts, and articulating a design vision that can make ideas real, design strategists (or strategic designers) bring unique value every step of the way.

One of the most powerful tools at the disposal of the strategy team is the collection of all of the strategic intelligence that realizes the strategy into a single visualization that quickly communicates the forces driving the strategy. From the digital business perspective visualizations often reflect strategies for single or multi-channel products, services, and experiences. The end result may be a completely new web site, a specific set of web-based services for a target market, or a multi-site strategy reflecting a diverse marketing campaign embracing social networks and other discrete touchpoints.

Visualizations can be all-encompassing, covering a full range of inputs that typically include over-arching corporate strategy, brand positioning, competitive positioning, and target consumers as well as outputs such as strategic drivers, principal ideas and concepts translated into prioritized products and services, and brand and design principles to apply when tackling implementation. On the other hand, visualizations can also focus on one contributor to the strategy information stream. A good example is the quantitative and qualitative research driving the establishment of market segmentation and creation of target customer personas.

Strategic design visualizations provide business design strategy a number of great benefits. Here are a few.
1. At a glance they provide a visual framework and a strategic context within which to house a quick view into the extensive research, insights, and findings driving the strategy. The report in word, the extensive presentation deck, the reams of research documentation are all still valid. Yet the visualization allows the viewer to quickly grasp the essence of the strategy and its principal highlights.
2. Visualizations are excellent ways to begin the socialization of strategy process across the organization.
3. Visualizations can be an excellent way to show how all departments within a company play a role in the execution of a strategy.
4. Visualizations can communicate the business logic driving design initiatives. In other words, one can draw a line through the visualization connecting the strategic dots that connect a piece of content, a new feature, a tone of voice, a certain aesthetic, to the core strategy.
5. Visualizations provide support objectivity when brainstorming ideas for new products and services.

Hey reader! If you have used great information design at your company to share your design and business strategies you may also have noticed the benefits. Why not share them here!?

posted to: Creative, Digital Strategy, Strategic Design | No Comments »

September 21

The future of public relations

by Dirk Reckerman

When you live in the middle of the digital marketing and media revolution, it is sometimes easy to overlook the problems and changes that many industries are experiencing. Not long ago, Public Relations (PR) was considered the most cost-effective way of getting an organization’s name out to the masses. Here in Boston, there are a myriad of PR organizations, and they are fighting tooth and nail to retain business. I wonder, however, if they don’t see the change that is happening around them. Or perhaps, similar to print media, they see it, but are not quite sure what to do about it.

As I pondered this dilemma, a few possibilities occurred to me. I segmented my thinking in the three ways- short, medium and long term. I also realize that painting in broad strokes affords me liberties that are not true in business. Oh, the beauty of blogging!

I strongly believe that the goal of public relations has a great deal of value. It is not the value proposition that needs to change, but rather the mechanism/tactics through which it is delivered. Therefore, in the short term, the tactics employed by a classic PR agency must evolve to embrace and leverage social media elements. If you consider the capabilities being offered by many PR agencies today, they still tout old school capabilities like press releases, media tours, messaging, highlighting executives, by-lines etc. These are all well and good, but how many of us read a press release? And if I wanted to learn about an executive, I expect to hear what that person has to say on YouTube or perhaps read it on their blog. A PR agency does not have to change the overall strategy, It simply has to incorporate these social media elements and tactics.

In the medium term, there may be opportunities for intersection of PR and digital marketing. To this point, digital marketing has been focused around traditional marketing through digital media. The skills and approach that PR experts bring to the table might be key to understand what drives people to organically and virally consume content. Communication strategy has not been the strong suit of digital agencies, but by virtue of being a rapidly evolving space, it may be time for the digital team to drive this strategy. In other words, leverage the experience, approach and thinking that is the corner stone of PR , but apply it to the digital medium and realize that the sum of these parts will be greater than the whole (i.e. PR + digital agency = future)

The long term approach is far more radical. It is anyone’s guess as to where the quickly changing environment will settle. The good people in the print media are having one summit after another to morph their operational and profit models to return to viable businesses. These media outlets have been the main stay of PR – not to mention the bane of their existence. My belief is that the trade of PR relations will begin to focus on experts and consumers. The middle ground of journalists and print publications as we know it will seize to exist. They will be replaced by centers of interest (i.e., think communities or groups), who create and maintain their own ecosystem content creation, commerce, reviews, communities – specific to that interest. This would not only impacts PR, but digital marketing and business in general.

There is a future for PR, but it is irrevocably coupled with the digital medium and digital marketing. The scary consideration is that these PR agencies must act now so that they do not face the same predicament as the print industry.

posted to: Digital Marketing, Digital Strategy, Industry Trends, Web 2.0 & Social Media | 1 Comment »

September 21

Facebook Pages: Woody learns strategy means thinking ahead

by Yuval Zukerman

Woody, TGI Friday's Spokesdude and burger wrangler

Following up on my recent post about Facebook pages, AdAge has an interesting article about TGI Friday’s efforts. TGI Friday’s set a public goal – to get 500,000 people to fan their spokesperson, Woody, on the site. Supported by a freebie (free hamburgers for Facebook fans), television and online advertising campaign, the campaign was locked and loaded. It’s just that before they even really went out and started spending their media, they had 80,000 fans. It’s just that instead of taking a month, it took them 13 days to reach the target. Half a million free burgers leave a dent on any company’s budget ($2.5 million retail value, assuming the $5 burger price). Now the TV and banners ads are running, increasing exposure.

According to the article frantic calls and discussions ensued on how to handle the explosive success. TGI Friday’s did the right thing, though. Until the end of the month, apparently, they are going to honor their promise and give away free burgers to fans of Woody (who apparently, by proxy, seem to like red and white with articles of flair). What can we learn from this: overall – TGI Friday’s set out right. Getting fans by giving away stuff is the right thing to gain traction quickly. Maybe dipping the toes and seeing if fans need the extra media boost would have made sense. At the very least, it would help to plan for a good outcome, and apparently budget for it. At least they avoided the scorn of what are now tens of thousands of fans who would have been left out in the cold, burgerlss. I am keen to see what they are going to do with Woody and how they are going to sustain interest in absence of freebies. In the meantime, I am going to get my coupon.

posted to: Digital Marketing, Digital Strategy, Industry Trends, Molecular News, Web 2.0 & Social Media | No Comments »

September 17

Mint.com + Quicken: Its Impact on How Banks Engage Their Customers

by Kevin Sardinha

I had been an active user of account aggregation services for years before switching to Mint.com several months ago. I could not have been happier with the services, ease of use and functionality provided by Mint. From my first login, I knew it would not be long before Mint.com was acquired. Their business model, the value of its customer information and the level of customer loyalty they have generated could not go unnoticed. My only hope was that it was not acquired by a bank that would turn its services into its own marketing platform (you know there were several suitors). My wish was granted when Intuit announced it would purchase Mint this week. But what does this mean for how banks manage and measure customer relationships going forward?

The level of engagement banks have with their customers has been continuously decreasing. As in-branch transactions continue to diminish, banks try to engage customers through other channels such as online banking and mobile. Unfortunately, these channels are primarily transactional, which makes it difficult for banks to engage customers in higher value interactions (cross-selling, etc.).

Mint.com and Quicken were already negatively impacting the banking industry’s level of customer engagement. With the merger, that impact will only grow. Once Mint utilizes Quicken’s technology and implements bill pay and transfer functionality, banks will begin to lose ALL direct contact with their customers. Customers will no longer have to log into their institution’s online banking system. As customers get tired of paying for ATM fees, high interest rates, etc. they will use Mint’s “Ways to Save” feature to find a better solution or product. Banking products will become completely commoditized and banks will compete only on price.

Unfortunately, most banks won’t realize the extent of this impact until it is too late. “Engagement” is not a primary measurement for most banks. They calculate success of a customer relationship based on the number of products owned, average balances, net interest income, tenure, satisfaction and cost to serve. In some cases, Mint will actually increase the value of customer to a bank. As a customer reduces their use of their bank’s channels, the bank’s cost of service will decrease. Although that customer is more profitable, their propensity to attrite and switch banks increases because they longer have a relationship with their bank beyond fees, interest rates, etc.

Banks need to quickly realize the impact of the merger between Intuit and Mint and develop new and innovative ways to engage their customers (online and offline) or risk becoming a faceless institution that competes only on price.

posted to: Data & Analytics, Digital Marketing, Digital Strategy, Industry Trends | No Comments »