Recognised, But Unfulfilled - The Digital Marketplace

What is happening .... - and why does it continue?

Digital, digital marketing in particular, offered so much. To date, the record suggests the delivery has been isolated, inconsistent and to a considerable extent, disappointing. Digital is transformational. Its potential is immense. Sadly, that potential remains unfulfilled, primarily because of a lack of understanding, the allocation of insufficient resources and sub-optimal application.

NON-NEGOTIABLE REALITY

Digital products, services and the concept itself are like the internet and social media. They represent, and are an inherent part of the future. When understood, supported astutely, applied and complemented with existing networks, capabilities and skills, digital is an enabler, and expeditor, which has the capacity to save time, enhance productivity, effectively target communication and optimise strategies, tactics and interactions.

The concept cannot be deployed in isolation. Companies and entities need to invest capital, infrastructure, people, training, support and integration to achieve and sustain the true potential.

To date the global transition has been slow. Old practices persist and financial and human resources are limited.

Broadcast radio is a contemporary case study. Analogue stations, with an emphasis on talk-back and news, persist, - profitably.

FM broadcasting has enhanced the quality of sound of the music played, but has limitations in transmission areas. The immense choice available on digital transmission is widely-known but largely unused because of the need to purchase new receivers.

Television represents a similar scenario with consistently like-trends.

AT WHAT COST?

Significant numbers of consumers recognise the potential, choice, benefits and advantages and rewards which are inherent in digital broadcasting and transmission.

They are happy to have it available. However, in recent times free service has become the norm and the expectation.

The “innovator” and “early adopter” market segments have been quick to respond positively. Sadly, those market mavens typically represent only around 10% of the marketplace.

The larger, and potentially very profitable sub-grouping, “Early Majority”, exhibit a measure of indifference, rather than resistance. For a marketplace which is driven by NOW consumers, who seek instant gratification, an attitude of “all in good time” seems to pervade.

A LITTLE HISTORY

My, how things have changed.

In 1947 the first School of Marketing was established at Harvard University, in the United States of America.

Its genesis was timely and appropriate. After the ravages of six years of World War II, human fertilisation rates peaked around the world. The then prevailing sales era persisted until 1963, when the first of the post-war boomers entered the workforce, secured an income and triggered consumerism.

Until that time the mantra for business centred on the 4 P’s being:

Product. Price. Place. Promotion.

A strong focus was on the products, their features and general physical presence.

A carry-over of huge national, family and personal debts impeded product development. Mass production was a virtue. However, unit costs of production were the pre-eminent corporate goals, and measures of success

Quality was a difficult concept to visualise, articulate and sell. Obsolescence was, in general terms, deemed to be a future consideration

THE BIRTH OF CONSUMERISM

1963 was a benchmark year.

Carnaby Street, mini-skirts, the birth-control pill and the Beatles evolved and had immediate, widespread impacts.

Fashion, transition, range and choices created interest, stimulated demand and generated sales, wealth and opportunities.

Part of the transition was the emergence of the 4 P’s of marketing, by:

Perceptions, Perspectives, Paradigms and Positioning.

DIGITAL DISRUPTION

The impact of the year 2000 extended well beyond the fears of the Y2K computer threat, and the birth of the millennium.

All things analogue were under threat. The digital world was not binary in nature or outlook. Choice and range were omnipotent.

Conglomerates were being dismantled. Miniaturisation was gathering pace. Nano-science and nano-medical procedures were at the cutting edge of human endeavour and experience. A new template was in place and in force.

The 4 D’s had arrived:

Daring. Different. Digital, Disruptive.

Individually and collectively, these concepts are essential foundations for reaching out, connecting and engaging with the current marketplace.

Their essential values are:

Daring – Tolerates and embraces risk, dispels fear

Different – Is lateral, not literal

Digital – A channel, not a product

Disruptive – Typically enhances, seldom replaces

They are widely discussed, marginally understood and sparsely applied with acumen.

Most of the marketplace potential remains latent, unfulfilled and awaiting the deft hand of an astute marketer..... - a leader.

WE NEED HELP

Interestingly, digital marketing consultants, with their abundance of product knowledge, are experiencing difficulty in monetarising the concepts’ appeal among clients and the public at large.

Substantiating and quantifying the financially tangible benefits are difficult. Their own earnings have plateaued.

This has been compounded by the evolving knowledge- bank which is revealing poor effective widespread exposure, and by the responses to social media advertising. Advertising, marketing and communication budgets, which had seen mass migration from traditional and established mass media, are being reset and redirected.

Too much of “one thing”, it seems, is simply indigestible and can leave a nasty taste, particularly among those who fed the market with such high expectations.

TAKING COUNT

Delegated authority parameters change when companies are being recalibrated. Long-standing executives and business owners are assuming greater responsibility and applying more detailed key performance indicators and monitoring measures with respect to their own digital transformation processes. Rightly so.

Realising the innate potential of digital will require discipline, integration, infrastructure, support and resources.

THE INITIAL STEPS

In isolation, the introduction of digital will generally not be overly successful. The concept performs best when it is an integral component of a structured, integrated and well-resourced strategy.

The following progressive elements are fundamental:

·       Identify, isolate, analyse and determine the optimal application of the chosen aspects of the digital spectrum.

·       Study the needs, wants, circumstances and criteria applied by those in the primary, secondary, tertiary target audiences.

·       Establish the preferred transition period and which existing products, services and applications will be retained and deployed to support and complement the digital innovations.

·       Seek out and conclude strategic alliances with key internal and external spheres- of- influence.

·       Formulate, document and implement well-resourced budgets for the immediate, intermediate and longer terms.

·       Ensure the introduction and conduct of on-going training for all relevant people in the supply chains.

·       Maintain a conspicuous marketplace presence of people, products, services and applications. Even with digital, share-of-mind often equates to share of market.

THE AUTHOR

Barry Urquhart of Marketing Focus is an internationally respected business strategist, consumer behaviour analyst and conference keynote speaker.

Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:      041 983 5555

E:       Urquhart@marketingfocus.net.au

W:      www.marketingfocus.net.au

Branded - For Success

Brands, products, services, applications and choice abound, many with little distinction.

Non-differentiated commoditisation reigns supreme. As a consequence, for many consumers and clients, pricing is the dominant selection criterion, overwhelming the innate and natural value and virtues of a good brand.

Value is difficult to identify, quantify and, well –value.

Search and purchase routines are typically extended, and often inconclusive when recognised and preferred brand names are not conspicuous and readily available.

Consumers do look for the reassurance and confirmation in brands that are recognised, respected and, above all, TRUSTED.

Sadly, in the current commoditised and over-communicated marketplace many people are confused, uninformed and their needs are unfulfilled.

MAKE A STATEMENT

Effective brand management projects the values, beliefs and virtues integral to the brand, the products, the services and applications which equate to advantages, benefits and rewards for existing and prospective customers and consumers.

Brand: Word associations are telling and definitive, when the brand name makes a statement.

For example,

Volvo: Safety

BMW: Engineering Excellence

Apple: Simplicity in design and application

A cursory overview of the branding landscape suggests that there is much to learn.

CULTURE-BASED

A recent national Australian survey identified and ranked brands in 65 categories. Perhaps expectedly, some of the tables revealed surprises and a series of, seemingly, stark contradictions.

For example, Dettol was ranked number 1 in both “First Aid” and “Household Cleaning”.

The charity sector was interesting.

Noticeably, church-based not-for-profit brands were conspicuously absent, doubtless a consequence of the fallout from the investigations in, and Royal Commissions on alleged paedophilia by those in the various networks.

Apparently, similar to the political arena, if one is seeking a friend, or unconditional love and trust with charities, they should look no further than man’s best friend - a dog.

The Guide Dogs brand ranked number 1, followed by the RSPCA.

The brand name and graphics are definitive – centred on reliability, value, consistency and trust. The graphics are instantly recognisable (in less than 2 seconds – on social media) and they resonate with a broad spectrum of people.

HAVE A CUPPA

Interestingly, in the coffee-culture of modern society two brands of tea – Lipton and Twinings – were ranked in the top seven of the most-trusted brands, regardless of category.

The manufacturers, distributors and marketers of the battery brands Energiser and Duracell doubtless got a charge out of being ranked 1 in the top 2 most-trusted brands in Australia.

LESSONS LEARNT

In many instances and respects the monetary value of brands is determined by the beliefs, philosophies and promises behind the products, services and applications.

For example, the unimpeachable and non-negotiable commitment to service excellence and responsiveness (the 24-hour promise of minimal equipment down-time) of the Caterpillar brand provides the sustainable competitive advantage in a crowded marketplace of high-tech, high quality capital equipment.

NO GUARANTEES

One cannot live by brand along.

In the category “Australian Iconic” Hills Hoist was “King of the Castle”.

Qantas was ranked second. This is an interesting case study, because during the course of the past two decades, the market share enjoyed by Qantas of in-bound and out-bound international air travel (centred on Australia) has fallen from 42% to around 14% (and declining).

Clearly, being recognised as an Australian icon and trusted is not sufficient to win and retain business.

When better value is readily found with brand names like Emirates, Etihad and Singapore Airlines, prospective passengers fly “the coop” – and with the competitors.

Creative, emotive advertising and sponsoring of the Australian Olympic team count for little in the race for consumer patronage and loyalty. Top-of-mind awareness can do little for the top-line and bottom-line if the brand does not deliver the promise.

COMPROMISING BRANDS

Bewildering to experienced and discerning brand managers is the practice of individuals and outlets in franchise, marketing, buying and cooperative networks that insist on featuring and profiling their own sub-brand name in literature, advertising, premises and signage.

The overriding group brand name is compromised for little purpose and gain. Egos can be distracting, toxic forces.

There is no evidence of such happenings with profiled and yes, trusted, brands like McDonald’s and Domino’s.

It seems illogical that an individual or independent operation would join a network, pay annual fees, seek to capitalise on the values and virtues of a recognised brand, then seemingly debase its value.

DOCTRINE OF NO-SURPRISES

Harold Geneen, the former President of ITT (International Telephone and Telecommunications) was a strong advocate of:

The Doctrine of No Surprises

Consistency, continuity and commitment were virtues throughout and beyond the corporation.

They were the stepping stones to building trust and brand supremacy. No surprises there.

It made ITT, and its suite of operating brands, including Sheraton Hotels and Avis, sought-after, leading and profitable.

I’LL DRINK TO THAT

It must be hard for some Australian brewers to swallow that the two most-trusted beer brands throughout Australia in 2016 were:

·       Corona

·       Heineken

To be wedged by the bitter taste of ascendancy (and lemon) with a Mexico-based brand (Corona) underscores the global nature of modern commerce and consumerism. No brand, product, service or application is immune to the power and relevance of good brands.

There is a lot that should be written, said and heard about astute brand management

THE AUTHOR

Barry Urquhart of Marketing Focus is an internationally respected business strategist, consumer behaviour analyst and conference keynote speaker.

Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:      041 983 5555

E:       Urquhart@marketingfocus.net.au

W:      www.marketingfocus.net.au

80:20 Rule Myth Shattered

Ask, and you will receive. The findings of a recent national research study have shattered the widely-held contention that successful businesses generate around 80% of their revenue from repeat and referral transactions.

Referrals have declined, substantially.

Consumers report effecting direct and personal referrals and recommendations to less than 8% of entities with whom they dealt with in the 4 weeks preceding interviews.

Arguably, the most disappointing finding was that only 2% of consumers reported being requested by service providers to provide recommendations, referrals and introductions.

Clearly, the art and discipline of asking for business has been lost on many -, new - generation employees in particular.

Things don’t just happen in business. They need to be encouraged, supported and nurtured.

Follow up and follow-through are integral elements of a transaction. They are the founding steps to establishing and sustaining relationships, adding to a burgeoning customer base.

Recruitment, induction, training and ongoing development processes need to feature and to reinforce the need for and benefits from a consistent practice of requesting endorsements, recommendations and referrals.

They must be complemented by an integrated schedule of corresponding, self-initiated contacts with those prospective clients who have been identified and nominated as satisfied customers. The circle of life has similar characteristics to that of the cycle of business. Birth, rebirth and procreation are fundamental. 

Remember, ask, and you will receive. Dismiss concerns about the fear of offense and rejection.

Barry Urquhart

Retail Strategist

Marketing Focus

M:      041 983 5555

E:       Urquhart@marketingfocus.net.au

W:      www.marketingfocus.net.au

"We Don't Do Call-Backs"

Insanity.

Some business practices are well beyond the sage, Albert Einstein, who once stated:

Doing the same thing over and over again and expecting different results is insanity.

Advising prospective clients who have telephoned that they will have to wait up to 20 minutes to speak to a consultant, and then declaring we don’t do call-backs is insanity personified and accentuated.

It happens daily. Indeed, all too-often, at great expense to the profile, images, revenues, profits and competitiveness of entities.

Regrettably, managers seem oblivious to the practices and consequences. Hopefully, they do not reflect polices.

The monitoring of incoming calls does not typically recognise, register and report on forsaken businesses opportunities.  Indeed, average telephone conversation durations can be reduced, and then applauded by management.  Some statistics simply measure the wrong dimensions.

Ignorance about and indifference to service excellence and the value of relationships among receptionists, telephonists and consultants is mind-numbing.  Some just don’t get it.

The contemporary global, national and local economies are such that few, if any, businesses can afford to readily knock-back or reject outright business opportunities.

However, regular work-practices are erecting barriers, filters and impediments for those who initiated contact and have self-declared they want and need specific products, services and applications.

A lack of astute, discerning and disciplined recruitment, induction, training and development practices is omnipotent.

A COMMON REFRAIN

If I could talk to more people, I could do more business is a common refrain, particularly among incentive-based sales people.  They know the innate value and resultant sales that arise from conversations.

Sadly, many employees believe in, and are driven by the contention that they aren’t sales people.  Wrong.  Every team member contributes to the sales process and gracious, courteous and responsive communication is fundamental........ natural and easy.

Business processes that do not involve people are typically self-serving, administrative and do not generate revenue and profits.  They are correctly designated to be cost-factors.

There is an increasing awakening that in business we all need to seek out, become involved in, enjoy and follow-up opportunities to communicate.

Incentives should not be required to encourage and to have all team members willingly undertaking call-backs.  Ringing up prospective customers and clients is the first step in ringing up increased sales and profits.

Indeed, the most consistently successful business, marketing, sales and service people make it a practice to “call-back” existing prospective and past customers. They know that conversations are on-going, and that they need to be part of the process, to ensure that they enjoy the outcomes and consequences.

NEVER TO BUSY

No-one should ever consider themselves to be too busy to make call-backs – or to initiative contacts.

Administration duties, meetings, and budgeting can wait.  Customers won’t, and should not be made to do so.

Attrition rates among the relationships with established customers are rising, in some instances up to 40% per annum.  Winning back those customers can be, and is, complex, involved, expensive and time-consuming.

Policies like we don’t do call-backs, do free-up time in the now, and in the future.  Over the longer-term there are few or no customers to call-back, speak to or to seek out.

CALL-BACK DISCIPLINES

There is much to herald about the disciplined practice of call-backs, including:

·       Commitments should be given, and fulfilled about call-backs.

·       Time horizons should be nominated.

·       Records of conversations, undertakings promised and milestones achieved should be documented, retained and programmed for follow-up (to enable further call-backs).

·       A daily schedule of at least 6 self-initiated call-backs should be implemented, to maintain enhance and celebrate relationships – which are founded on, and sustained by communications.

FOOTNOTE TO MANAGERS

I commend those who become aware of the practice by competitors that they don’t do call-backs, to initiate contact with the managers of those entities to surrender yourself as being willing to receive and collate the names of those unfilled customers so that they can make those annoying, disruptive, time-consuming call-back calls.

For those customers who are subjected to the inane, if not insane practice of “no call-back policies” contact management and enquire about the identity and contact details of competitors who do call-backs.

They might just get a clear message......hello.....no hang-ups.

THE AUTHOR

Barry Urquhart of Marketing Focus is an internationally respected business strategist, consumer behaviour analyst and conference keynote speaker.

Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:      041 983 5555

E:       Urquhart@marketingfocus.net.au

W:      www.marketingfocus.net.au