June 2009

Question: Has your sales and marketing tactics changed radically over the past five years?  Not to over hype it, but the second half of this decade has brought changes in media consumption that rivals the introduction of the printing press and television.  You need to keep your customer’s behavior in mind when deciding which marketing and sales tactics to use in light of the dramatic changes.

Five years ago no one had yet heard of YouTube, Hulu, Face book or Twitter.  Reality TV now dominates the ratings as Andy Warhol’s prediction of instant fame actually came true.  Public Wi Fi is everywhere and Google is now a verb.  The new generation of smart phones would amaze James Bond.  DVRs  and IPODs have completely changed the concept of consuming and buying entertainment.  When it comes to content, the influence of bloggers in politics, sports and entertainment often drive the media narrative with the mainstream media chasing. 

Major newspapers like the Boston Globe are a dying business model.  Network TV viewership is at an all time low and the level of creativity is even lower – how many crime shows do we need?  Magazine are shrinking and trying to reinvent themselves like Newsweek, Playboy and Reader’s Digest.  The B2B trade press is migrating from print to online content, web casts and virtual trade shows.

Thanks to advances in technology, the balance of power has shifted from media to consumer and that changes everything for marketers.  Have you adjusted your marketing plans to take advantage of these changes or are you maintaining the status quo?

Here are ten burning questions you need to ask yourself now:

1. Are you conducting or finding research to understand how your customers are consuming media? 

2. Does this research tell you the information needs of your customers and prospects?

3. Are you still renting expensive ad space in print and TV with the majority your budget? 

4. Are your producing original content and owning your own media channel to create an interactive dialog with your customers?

5. Is your company using original content to become a trusted media brand?

6. Are you creating passion and communities among your customers?

7. Do you make an effort to balance your retention and acquisition efforts, or are you over investing in lead generation?

8. Do you have a defined social media strategy to engage with customers and prospects where they are spending more and more time?

9. Are you personally engaged with Linked In, Face Book and Twitter to find prospects and talk to your customers?

10. Do you have measurement metrics in place for all of your marketing and sales tactics?

Think about your honest answers to these questions and take stock of where you are with both your company and career.  It is easy for mid career professionals to write these changes off as a passing fad or “for kids”.  That is probably what they there thinking at the Boston Globe and Newsweek just a few years ago.  We are in the midst of big time changes across the spectrum of politics, economics and media consumption.  The companies that adopt swiftly will thrive over the next decade. 

During last few weeks I have noticed a ratcheting up of inbound direct mail (postal and email) coming to me from companies that I had bought from in the past.  It ranged from Lowes and the Sunglass Hut sending me $50 off coupons for purchases over $200 to Omaha Steaks and 1800 Flowers emailing me great deals for Mothers and Fathers Day. 

Marketing to current or past customers is always smart, but even smarter during a recession.  Acquiring new customers can be a very expensive but necessary operation.  When funds are tight nimble companies tweak the balance between retention and acquisition.  By mining your customer database you can target past customers who will be more receptive to your messages.  Keep in mind most consumers are cutting back and trying to spend wiser.  A good deal from a familiar voice can get them to open their wallets.  It is always easier to convince someone to buy again rather than for the first time. 

Customer retention is even more powerful when paired with content marketing to build stronger relationships with customers who will see you as a trusted information resource.  This content can take the shape of custom magazines or magalogs, newsletters or webcasts.  Even face to face events for current customers could deliver a solid return.

How are you balancing your acquisition and retention efforts?  Do your customers see you as a trusted source of information or just someone trying to sell them something?

A content rich custom media customer retention program may be your best bet during trying economic times.

In 2000, Al Gore received a half million more votes than George W. Bush for President, but it was not to be.  Talk about Karma - fast forward to today and W. is in his living room with the lowest approval rating in modern times and is still a punching bag for the media and comedians.  Meanwhile, Al Gore has added a Nobel Peace Prize, Oscar, Grammy and Emmy to his environmentally correct trophy case.  In case you didn’t know, Gore is also one of the founders of Current TV.  Description below:

Since its inception in 2005, Current TV has been the world’s leading peer-to-peer news and information network. Current is the only 24/7 cable and satellite television network and Internet site produced and programmed in collaboration with its audience. Current connects young adults with what is going on in their world, from their perspective, in their own voices.

Current pioneered the television industry’s leading model of interactive viewer created content (VC2). Comprising roughly one-third of Current’s on-air broadcast, this content is submitted via short-form, non-fiction video “pods”. Viewer Created Ad Messages (VCAMs) are also open to viewer’s participation.
 

Current TV is a creature of the new media landscape and takes advantage of the fact many people want to create content, connect with peers and be famous. The technology to live this dream is now in the hands of the masses.  You can see this theme throughout media and popular culture.  Who received more “buzz” this year?  Was it Adam Lambert, Susan Boyle and the Housewives of NY/NJ or the scripted dramas on network television?  Clearly it was the reality stars because they feed into the concept of democratized content and aspirations of fame and fortune.

This trend has implications for marketers and advertisers trying to reach an ever more fragmented audience.  The 30 second spot and print ads are dying art forms.  One of the cool things about Current TV is they allow viewers to create ads for major brands such as HP and T-Mobile based on some creative assets and a brief.  Their research shows that viewers prefer user generated ads by a ratio of 9 to 1.  This trend does not bode well for traditional ad agencies, and doesn’t big Al know it.  Read a few quotes from a keynote he recently gave at marketing event as reported by Adweek:

He described the end of the industrial-revolution-like era of advertising, which produced ads that are “big, blunt expensive and very intrusive. . Audiences have begun to resist that old model.”   Going forward, advertising needs to become more nuanced, authentic and peer-to-peer, said Gore. “People want a different kind of feeling toward brands to which they give their money.”
 
That means being more upfront about ad messaging, rather than attempting to squeeze marketing messages into content through branded entertainment, he said. According to Gore, one of the reasons that Current viewers like VCAM ads is that they are straightforward in their intent. “People are interested in what someone like them is going to do and they’re not going to have something slipped by them,” Gore said. With ads that have been disguised as entertainment, “there is some resistance to those models. . . . We believe that intelligent empowerment of the audience is the key.”

Al Gore will likely never be President but he is now at the forefront of private custom media channels and content marketing.  In the parlance of marketing speak, Al Gore “gets it”.  Do you? 

The job of a marketer has probably never been more complicated with all the choices and options we have to communicate our messages for lead generation and customer retention.  The advent of new web tools and social media has made keeping up a full time job.  Our friend Joe Pulizzi at Junta42 has done a great job of compiling all the tools you need to know about in the areas of custom media, social networking, interactive conversations, Facebook and Twitter tools, content sharing, blogging, back end operation and of course, measurement.

Take a look at the list and let us know if you have any gems to add.   Personally, I have found the ability to share information with peers one of the best benefits of social media. Later this week I’ll let you know who I follow via Twitter to keep up with the daily changes in our world.  Happy reading.