Unclosed Loop - Referrals to Ad Networks

A couple of days ago I wrote about closed loop ecosystems and the new Red Flag Deals Cashback program.  They are fantastic because they allow a single platform to track consumer behaviour through to purchase.

Here is an example of what can happen to the customer experience when the loop isn't closed.

To reserve a hotel for an upcoming bike race I was looking on Expedia.ca.  Using their search tool I was able to find a number of available rooms.  Clicking on one in particular brought me out from Expedia and to the Hotel's website to make a reservation.  After completing it I even received a notification from Expedia with all of my details - very handy.

Image of Banner Ad day of making reservation

But visiting another website later in the day I was presented with a banner ad to book a hotel in the very same city, with similar offers.

I'm used to seeing activity like this from sites like Clearlycontacts.ca when I browse, but don't complete the order.  But I had completed with my transaction.

Giving them the benefit of the doubt, I went under the assumption that the files between Expedia and their Ad Network provider hadn't reconciled yet.

Image of Banner Ad 2 days after making reservation

Visiting another website two days later I was presented with another offer - different details but same trip parameters.

For Expedia to get into the Ad Network business would be a bit of a stretch from the service they provide.  But passing details to close the loop with their Ad Network provider should not be.

As a customer I now feel that they don't know me and are only interested in pushing me more.  I would be open to them offering me other services that I might need for my trip like flights, car rental, restaurant reservations or travel insurance (if it was international travel), but don't try to sell me something I already bought from you.

Use 4 Questions to Evaluate your Strategy

There are a wide variety of frameworks and processes to design your strategy.  Assuming they are sound and you've followed them properly it's important to assure yourself that it will be successful in meeting your objectives.

Whether it's restructuring your online presence, launching a product or putting up a banner ad (although that's a stretch to call a strategy) you need to evaluate the quality of your strategy.  Here are some simple questions to ask yourself.

1. Does your strategy take advantage of your key resources?  Think about what you have on hand and what can easily be exploited.  This can be people, content, infrastructure or any other assets.  Does your strategy make full use of these or are they largely ignored?  
2. Can you sustain your key differentiation points?  You've made some assumptions about the competition and your abilities as your competitive advantage.  Are you going to be able to maintain that position or is it relatively easy for your competition to duplicate or exceed?  Or in other terms, once you are in market make sure that you don't lose your key differentiation points.
3. Can you obtain internal alignment?  Your strategy will most likely require participation from other key groups like customer service, sales, procurement or IT for complete implementation.  Can you line up your work against their KPI's or objectives?  Have you got buy-in from the leaders of those groups?  As you build out your launch / project plan these considerations will need to be considered.  If you ignore them you may not be fulfilling the expectation that you set with your customers.
4. Can you properly implement your strategy?  Do you have the budget, people and time to implement all aspects of it?  You do not want to implement with a half-baked solution, you know it will fail and have seen other ideas get ruined in the same way.  If you don't, figure out the roadmap that will allow you to launch in phases.

And if you have more questions that answers after going through this it's time to go back to the drawing board.

Closing the Loop: Red Flag Deals new Cashback program

There are very few consumer ecosystems that are able to provide closed loop environments.  Most websites aggregate content and refer traffic without completing transactions.   Amazon led the way with having a full service and has been able to offer a whole new level of customized buying experiences and tailored offers / recommendations for consumers.

Companies like Mountain Equipment Co-op have had the opportunity, but have never capitalized on it.  Now Red Flag Deals is offering it's own rewards program that appears to have similar merits of Amazon, and it's a brilliant move.

They are historically strong as a forum for people to share deals (almost 14,000,000 posts) and a way for service providers to promote offerings traffic was referred to host sites, but now they can complete the transaction.

Users need to register, buy from partner retailers and collect cash back on a quarterly basis.  The terms and conditions are straight forward - and the learning opportunity for retailers is immense as all aspects of the transaction will happen on their site.

They have always been able to track browsing behaviour and referral path, but now they will be understand the full consumer path to purchase
What led them to purchase?
If they didn't complete, what was the last item viewed before abandoning?
What other items were viewed?

This will also provide them with new services to companies looking to test products will increase their leverage with suppliers.

Why I like Facebook Ads, but not in my Newsfeed

Browsing Facebook this morning I experienced newsfeed ads for the first time, and I was not impressed.

The success of Facebook as a social networking platform is due to it's unique ability to connect people through various associations within a central location.  It started with a single school, moved across others until we got to the age of likes and of colleagues complaining that their boyfriends mom is trying to friend them.

Advertising drives revenue for Facebook, and like all other media platforms (yes, its a media platform) that allows users access to content.

From a marketing perspective I love using Facebook ads.  Great targeting based on profiles and activities allows me to easily attract fans, likes and engagements at basically a cost of $1 per person.  I can easily test ads and manage my budget to increase or decrease activity.

As a user I expect some friends with spammy feeds from Farmville or Photo of the Day to show up in my news.  It is part of being their friend online and if I don't want to see it anymore I can simply change their settings.

If the customized ads on the right sidebar show me relevance and catch my eye I'm happy to click through.  But ads in newsfeeds are completely out of place and distract me from the core user value proposition of the platform - to maintain relationships.

I choose which brands can promote to me by being a fan, but I can't choose newsfeed ads they choose me.

They distract me from my interactions, particularly on mobile, and they make me wonder about the pressures being applied internally about driving revenue in the face of a falling stock price.

I'm going to assume that a similar algorithm used to deploy standard Facebook ads is used within newsfeed ads, but it still distracts from my user experience.  Larger brands won't like it, but what about including them as ad units when I'm engaged with a complimentary, not competitive, brand instead?  This feature exists on brand pages today and could be easily expanded to increase relevancy and conversions.

That would keep me focused on who's dog is cute and allow me to continue to engage with brands on my own terms when it is time.

Employee Tracking, Big Brother or No Big Deal?

I recently had a chance to visit a someone at another company and noticed something while waiting in the lobby.  For any employee to get in or out of the office they had to use their passcard.  Accompanied by this was a small screen beside the door that showed the name, title and picture of the person.

Initially, it freaked me out.  I stopped someone who came through and asked him what he thought about it.  He said it was great because he could find out where anyone was at any time.  I then asked him about the flip side of that coin (everyone can find you at any time) - he had to agree.

To develop customer segmentation and create meaningful campaigns I rely on activity data like this all the time.  Without knowing who viewed what page, clicked on what add, posted what tweet or opened what email I have very little ability to effectively market to people.

We have the option to hide some of our internet activity, unsubscribe from communications or make our tweets private - but do we not enjoy the customization and relevancy that is delivered to us because of it?

Consumer behaviour dictates the type of programs, offers and engagement opportunities we put into market - so why not apply the same thinking to employee behaviour?

Smarter decisions about office layout, team dynamics and interactivity can be made with something like this in place, and I think it's just the beginning.  Network monitoring could tell when my computer was overheating and in need of a replacement.  Using alerts and GPS to tell me when someone was back in their office rather than stalking or waiting would save a lot of time.

Screenshot from Gmail for an ad offering Wedding Photo services alongside an email for what else?

Every office has a passcard system and network monitoring, it would be naive to think that the information wasn't available.  Seeing it in use is definitely provocative and reminds me of the first time Gmail Ads were tailored to me based on the content of a particular email.  Troubling at first, but once I understood what it was for and how it was being used I welcomed it.

LinkedIn Ads, and why I don't think they work

I've been a long time user and believer in LinkedIn.  As a professional networking tool it is second to none and gives me the opportunity to create and maintain relationships with a wide range of people.

Screenshot from LinkedIn Email

A recent email campaign (screenshot included) from LinkedIn promoting their advertising program along with some know-how I have from developing a campaign for a client however make me think that they are missing the mark trying to generate revenue from advertising.

As a business, LinkedIn is structured in 3 divisions

1. Hiring
2. Personal/Premium Subscriptions
3. Marketing

Their positioning against other social networks is quite unique as well

• Facebook is the backyard BBQ
• Twitter is the soapbox
• LinkedIn is the business lunch

As over 70% of their users would be considered passive candidates, or not actively looking for work, LinkedIn is also not a job board.  It is however a great way to connect to opportunities or for recruiters to find you based on skills or experience.  I think in recruiting it is second to none and where their strongest value proposition is.

While the ability to customize ads to users based on profiles and locations there is no way to identify what my personal preferences or needs are that can be useful for advertisers.  This is demonstrated in the high cost per click for LinkedIn ads which typically come in around $3 - $5.

The core purposes of the platform do not allow it to advertise to it's users - or at least effectively.  Users don't expect to be marketed to, unless it's for work - which is why the platform works so well.  This offer sent to me by LinkedIn also makes no sense.  It knows what type of business I'm in, and it know what work I do.  It should also know that I'm not going to use it.

How to Document and Measure the Customer Experience

Do you want to know what your customers are doing - and how you are doing at serving them?  Start by documenting the steps that they take in their journey with you and then measure against them.

Most consumer purchase processes follow a typical cycle of Research, Purchase, Service, Recommend and Renew.  Different organizations may call them different things, but you need to start somewhere.  Some industries or products may not have a service element (yes I know that even toothpaste has a 1-800 number, but does anyone call them?).  Map out the big steps a customer takes in it's interactions with you throughout the purchase process as phases.

Within these phases is where the nuances of your service offering and specific product will differ from industry to industry and across competitors.  We'll use getting a phone plan as the example.

Think about what you do in researching a similar product and breakdown the activities that you partake in to move to the next phase.  These are the elements within each phase.  For illustrative purposes only, this is not a set of definitive activities for getting a phone plan, it's a start.

Within these steps are key moments of truth where it is truth where a customer's satisfaction and ability to move forward with the process have the most impact.  This is a critical piece in understanding what your customer is going through and are highlighted for illustrative purposes.

The elements and moments of truth for your particular organization may change over time, and your customers will tell you if they should.


Finally, survey your customers at regular intervals evenly across all phases and elements to gauge their satisfaction and understand the drop-off points within the purchase process.  Applying a heat map technique (illustrated below as green is good, yellow is ok, red is bad) will help your organization understand where your operational focus should be in addressing the needs of your customer - awareness, sales team, customer service, product, etc.


In this example the company ranks high in Comparing Plans and Making Purchase Decision.  This would be typically achieved by having competitive rates and easy-to-use comparison tools available.  Their is however a drop off at Negotiate Final Plan which may mean a sales training issue exists that needs to be addressed.

Increasing Relevancy in Email

Consumer behavior has changed, and email needs to adapt to it.  Email today is being viewed under the consumer lens of 140 character micro-blogging and 5 second video clips that are highly entertaining and engaging.  The volume of digital messages is constantly increasing, and to the consumer email is just another channel.  Conversion rates are down 0.25% over the past two years on email, but through its ability to deliver customized messages, email can be extremely effective when used properly.

With the rise of mobile it is critical to ensure that marketing programs can be properly experienced through mobile devices.  The use of Mobile devices is exploding across Canada with 67% penetration in 2012. Mobile is also the preferred device for looking up information on the go, and the primary device for checking email.  As a device to access the Internet, mobile usage grew 28% in Canada in 2011 and is trending to include half of the population by 2016.

Conversely, the cost effectiveness of email has allowed marketers to become lazy, and email performance has suffered. Some of the basic practices for email have been forgotten.
 
To make email relevant again marketers need to look at email as a critical digital engagement channel.  How?  Make sure that the basics are covered and then apply these 4 new principles.

1.    Increase relevancy in subject lines

The subject line is the first barrier to getting your email opened.  Use all the information you have available on the recipient to communicate the value and importance of the product / service or information that you are offering.

2.    You have the data, improve customization

Based on what you know about your individual target and what they have done with you in the past, what can you do to make email content as engaging as possible through customization?

3.    Design for mobile

50% of consumers use their mobile device to first scan the email then open later.  Does your target skew even more towards mobile?  If you are linking out from your email in your call to action is the destination viewable on a mobile device?  A typical subject line is 55 characters, however most smart phones show only 35 characters.  Make sure that you are getting your point across quickly and effectively.

4.    Deliver based on the best time for your customer

Inboxes are getting crowded with messages and setting customer expectations with a consistent schedule is more important than ever.  To do so think about when you would like you customer to act, or when they are able to.

Marketers can also create their own best practices to retain within their organization.  Documenting specific campaign performance and creating corporate memory will allow them to understand how to best apply these practices to their specific program target.  Looking for commonalities within their customer segments and industry trends will deepen this knowledge.

Fantastic example of personalized content

Getting people to test drive a vehicle is one of the major hurdles in the automotive sales cycle.  Getting people to picture themselves having a dream car may be a new step.

At the end of July Pfaff Porsche upped the game in delivering personalized content to people by parking a new Porsche in their driveway, taking a picture and printing a customized brochure for them on the spot.

I love this on a number of levels.

1. Personalization - it may be creeping the lines on trespassing, but being able to see what a Porsche looks like in your driveway is a great way to get people thinking about buying.
2. Targeting - A lot of people would want a Porsche, but not everyone can afford one.  This was done in areas with higher income levels (I hope no current customers though)
3. Tracking - Household level tracking becomes a reality where you can see exactly where this was effective, or not
4. Cost Effectiveness - With the margin of a single vehicle sale being high (typically around 15k for a premium vehicle) this is a very low cost way to generate interest
5. Scalability - While all manual, it is relatively low effort and could be easily scaled with a couple of extra cars and some additional man-hours

When I steal this idea for another client though I am going to try to add some additional elements to increase the sharability of reach of this type of work.

Make it digital - include a link on each of the brochures to a customized url that includes a sharable photo so the event can be shared with friends and family.

Make it global - coordinate in advance with Google Streetview to time when they are going to be around (it can happen) and park the cars in advance to allow the event to be experienced with everyone.

Crowd-sourcing, be careful what you wish for

Two recent examples in crowd-sourcing should serve as case studies in be careful what you wish for.  One is a minor embarrassment, the other could impact a product launch.


The home run derby is MLB's answer to the slam dunk contest and similarly is the best part of the entire festivities.  To try and increase "engagement" on their page, ESPN offered up an open-ended poll about who people thought would win the home run derby.  Noble, but maybe not thought through to the end.    A recent quote from Bryce Harper ("That's a clown question bro") ended up beating some actual players.

Mountain Dew recently asked people to submit names and vote up the most popular to become the name for their drink.  Somehow I don't think Diabeetus was what they had in mind.

I love engaging audiences for participating in brand development, but I think that both of these could be done with limits and still achieve positive results.

Letting people submit names, have them shortlisted by Mountain Dew with attribution to the contributor and then voted on would achieve the program goals.  Some goes for a closed poll with only the participants as options.

Automotive: Who owns the Customer?

A colleague of mine recently bought a car.  He kicked tires, did some research, negotiated on the price and drove away happy.

Two days later though, he got an email from the manufacturer about a new sale on the very car that he bought - at an even better price. He was no longer happy.

What happened after was more of a customer satisfaction exercise and that's ok, but the lesson in this is for the different pieces of the automotive organization to understand who owns the relationship with the customer, and who can say what when.

All different elements of the organization want something more from every prospect and customer, but to the customer they are all one and the communications must seem as they are from one.  How do you do this?  By establishing a contact strategy that puts the customer in the middle while addressing the results that each of the areas needs to achieve for a healthy business.

The Original Equipment Manufacturer (OEM) supports the other areas by focusing on customer acquisition and awareness.  They should establish a lead management process that qualifies leads and delivers them to Sales when they are ready to buy.

When a prospect is ready to buy it is time for Sales to do their job.  The entire process and all communications related to it should remain with Sales until a sale is completed.  If no sale is made, the customer should go back to the OEM for ongoing communications.

Once a sale completed however, that customer relationship should be owned by the Dealer.  The time between sales for a customer is long and it is the job of the dealer to maintain a positive relationship and a connection through communication.  Ideally, this is done with the support of the OEM through communication platforms, content and messaging - but the relationship stays with the Dealer.

Part of maintaining that relationship is through Service.  The vast majority of revenue for Dealers comes through Service, but as the key driver in customer satisfaction (both good and bad) only a relationship that is based on trust will only pay off.

Cool down periods between steps in the process, and sorting out recent purchases is a part of the process - but can't be implemented without a full understanding of the various areas and how they relate to the customer.

Design for your Customer, not Tactics

Building a strategy?  Please don't build it around a tactic, or start talking about tactics until you understand your customer.

Start by thinking about your customer and the benefits of your magical widget to them.  Whether a product or service, you should be able to gain some insights when thinking about the emotional and functional benefits.

Emotional benefits?  How it is going to make them feel.
Functional benefits?  What they are going to be able to do.

Understanding how to apply those benefits to customers through tactics can be done by knowing more about your customers.  They are out there, but you need to identify some simple things;

What channels are they interacting in?
How are they using those channels?
How can these benefits intersect with that pre-existing behaviour?

This customer centric approach will produce a more engaging and effective program.

Big Data? Big Deal

There are a lot of articles, posts and tweets about big data and the massive potential for decision makers and marketers - but just because you can capture and store it doesn't mean you should.

The key to making data effective is to understand what you are going to use it for.  Tools today can let you capture the most minute of interactions, shares and "engagements", but if you are capturing it all I see it causing more confusion - by raising more questions - than solving any business problems.

Organizations need to look at the data they capture today and the way that they are using it to first understand where they stand.  Identifying future objectives and the data required to meet them will help them understand what they need to do next.

The goal is not to have the biggest database, or the most complex - it is to have the most useful.