Why Do People Run?

Why do we do it?   No one is forcing us.  As Christopher McDougall points out in his brilliant book, Born to Run, we no longer need to chase down our food.  So why do we do something physically and mentally challenging, and occasionally painful, if we don’t have to. Why not just take it easy?

cherry

This was the conversation inside my head early this weekend before the Cherry Blossum 10 Mile run in the Nation’s Capital.  In fact, it’s the same conversation I have before any race.  Why would anyone in their right mind stress themselves out for a week and get out of bed at 5:30 am on a weekend to run.

I spent the first 2-3 miles of the race observing people trying to answer that question.   From what I saw, some folks run to challenge themselves, some run for others, like the a guy in a yellow kilt running for fallen combat soldiers, the woman with a picture of her deceased cat on her shirt, and of course, the group of sickos who do it because they actually enjoy it.

Me? Well, I’m another story.  It’s taken me many years, several races, and 10 miles this weekend to figure it out.   The truth is, I hate to run.  It’s a means to an end. I like to race, but I hate to run.  It’s a legacy of growing up playing sports, where running was a “have to” and not a “want to.”

Up until my 40th birthday, I had successfully avoided running, while slowly turning myself into a “fat and happy” sedimentary “couch” potato.  That was until a colleague of mine issued the challenge of doing a sprint triathlon as a way for us to celebrate our 40th birthday (thank you Patrick).

Since that time, I train regularly and do various types of endurance races.  Along the way, I dropped the 25 lb. bag of potatoes.   I’ve gotten into a routine of training, but I hadn’t totally figured out why I continue to do races until this weekend.  Alone with my thoughts for the next hour and half or so, I committed to figuring it out.

I know that I need to pick events that give purpose to my training routine.  But the epiphany came at mile 5 when I realized that I think I actually like to scare myself to remind me not to become complicit and/or too comfortable again.  My approach is to pick events I’ve never done, and to usually do them alone, because it heightens the fear factor.

The days and night before the race is spent stressing myself out about the course layout, logistics, and perhaps, most importantly, the locations of bathrooms.  But along with the fear and the stress, I know there is also the heightened sense of accomplishment.

By mile 9, I realized that this habit had spilled over to my work life.  I left a comfortable position three years ago to enter a new industry, and to start a new business with gyro.  I “had it good,” but I decided shake things up, I had become in a sense “fat and happy” in my career.

Like training, we can easily fall into the “habit” of just going to work everyday.  In fact, some probably dislike it as much as I dislike running.   And I wonder if that might be because our work life sometimes lacks that “event” to give it purpose.  It’s easy to fall into a routine and become comfortable.  Life itself can be complicated, so why make it more difficult?

Perhaps a big, fat scary goal is what is needed give greater meaning to our work, and to reenergize us.  With that fear of the unknown, and/or the unaccomplished, also comes the reminder of what it is to be alive.

Yes, it can be painful and uncomfortable, like how my lower back and calves feel as I write this, but you may also be pleasantly surprised.  A sense of accomplishment can fuel the need to set bigger, more challenging ways to push yourself, becoming a habit.  So, if you get a chance to be alone with your thoughts, ask yourself “why do you run?”

Numero UNO: gyro B2B Agency of the Year

I joined gyro in 2010.  At that time we were called GyroHSR, and were a collection of 9 small to mid-size agencies from around the world that were part of a roll-up.  We didn’t share a common language, system or culture.  What held us together was a vision of being the world’s best B2B agency.

The first year was challenging.  I came into the ad business from the outside.  My experience had been consulting and marketing services.  I naively thought it would be an easy transition, that my world and this world weren’t that far apart.  I was wrong.  Everything seemed to have a learning curve, I spoke a different language and the other side of my brain, long neglected, needed to be developed.

AOY win-640x360 screen size

Over the next two years almost everything would change.  We dropped the “HSR” and became known solely as gyro.  Our investors brought in a new management team and our new CEO & Chief Creative Officer, Christoph Becker would completely remake our creative teams across the network.  But most importantly, Christoph would change our culture, our language and our focus.  And along the way, the right side of my brain began to develop.

During this time, we undertook two intiatives that I think have set us up for the success that we are enjoying today.  The first, was that we believed that “b2b marketing” as we knew it, was “dead”.  Targeting a business buyer by a title, at a business address, during business hours, was an antiquated concept.  We would later prove that to be the case with our @Work State of Mind research conducted with academic institutions and Forbes (click here for the research report).

The second was that ideas needed to be “humanly relevant”.  That behind every business decision maker was a person, and that person made decisions based on emotions.  Our research would show that the buyers journey was, in fact, a very rational process up until the point of the decision…and then emotions took over.

It became easy to differentiate ourselves from competitors, and clients/prospects believed in what we preaching.  As the wins starting coming, our culture started to align around what we call UNO.  One language, one process, one culture, we became unified across the network.  Client teams from across the world began working together to deliver the best ideas and outputs, regardless of the location.  Our work starting winning awards, and the world started to notice.

What’s different about BtoB magazine award today, isn’t necessarily that we’ve been recognized, gyro has won awards in the past.  But rather it’s an external validation point that we are on the right path, and the hard work is paying off.  We won in the “Large” agency category (our first year in that category), going up against the “best of the best,” like Ogilvy.  It’s a litmus test that our vision of being the best B2B agency in the world, and the reason why most of us joined gyro, is being realized, at least in the U.S…and at least for this year.

We not done yet, we still have work to do and clients to dazzle, but for now…we’re Numero UNO, and it feels good.

How Marketing Impacts Sales Performance

You know the question is coming, because it comes every year.  You know who is going to ask it, because they ask it every year.  It’s just a matter of when, perhaps at the end of a difficult quarter, or during a mid-year review meeting.  As budgets are being discussed it comes; “What are we getting from our marketing dollars?”

It’s a fair question to ask, and given the size of some marketing budgets, marketers should be asking the same question.  To answer the sales executive (usually the one asking the question) you must first recognize what they are really asking, which is; “what is the value of marketing to them?”  Specifically, they want to know the impact marketing is having on sales performance, beyond leads.

A few years ago, we did some interesting research for a medical equipment manufacturer.  Their analysis showed that they were missing opportunities but they couldn’t agree on why – was it a sales or marketing issue?

To uncover the answer we interviewed hundreds of buyers (customers and prospects) in order to rate the performance of the company compared to three competitors, at four stages of the pipeline, product awareness (unaided), consideration, proposal and win.  We then constructed a quantitative model to reflect the impact of changes in performance. Two years later, we were given a unique opportunity to measure the impact of recommendations and investments.

The research yielded three key insights on the importance of marketing and how it was impacting their sales success:

1. Increasing Opportunities  – without marketing support sales cannot move consideration rates.  The company’s unaided product awareness rate was 62%, compared to 88% for the market share leader.  The consideration rate was even worse at 46% compared to 86% for the leading competitor.

The organization had a strong sales culture.  So to demonstrate the need to increase marketing activity, and not just sales coverage, we included “relationship with the sales team” as a key consideration drive, along with typical drivers such as; price, brand, and service.

Screen shot 2013-02-17 at 10.53.29 AM

The research showed that the relationship with the sales team was not an important consideration driver.  In fact, the data revealed that reps could do very little to change buyers’ perceptions relating to products and service.  It also revealed a new buyer that was not being reached by the sales force.

The company increased the marketing budget and reallocated funds from events into digital marketing.  They ramped up webcast, videos and built a microsite specifically for this new buyer.  As a result, Awareness rose 17 percentage points to 79%, and Consideration, originally at 46% rose to 62%.  The model showed that an incremental 1% change in consideration rates yielded 20 new opportunities, and almost four new wins with a value of almost $2M.

2. Sales Coverage increased marketing activity can create the perception of greater sales coverage.  Buyers were asked how often they saw a sales person within a 90 day period.  They mentioned seeing the company reps on average of 0.8 times, basically once a quarter, while reporting rep visits from the leading competitor at 2.5 times, almost once a month.  Two years later, buyers stated seeing the company’s reps 2.4 times per quarter, on par with competitors.  As a result of the ramped up marketing efforts, buyers perceived an increase in visits despite the fact that the number of reps in the segment remained the same over the two year period.

3. Sales Enablement marketing can identify shifts in buying behavior.  The company’s performance had increased in all stages of the funnel except for one, existing accounts Reps had mentioned that customers had become more “price sensitive” and competitors were undercutting them.  The company was the product leader in the industry and the senior management team still believed that technology innovation was the key consideration driver.

The follow up research found that the sales force was indeed right.  Buyers had shifted their priorities.  With changes in reimbursement, healthcare reform, and an effective competitor campaign against overbuying technology, buyers had indeed changed, much faster than anyone suspected.

Screen shot 2013-02-17 at 12.07.09 PM

As a result, sales material and value proposition had to be updated quickly.  Instead of espousing the virtues of innovation, it now needed to help buyers justify the investment.  Leading to a shift from “bells and whistles” to “ROI models and product configurators.”

So, how do you communicate the impact marketing has on sales performance?   Tell the sales folks that marketing can identify new buyers and influencers, increase the number of opportunities reps see, improve a buyers perception of sales coverage, and enable them with the right value proposition at the right time to win the deal.  Of course, you’ll need the data to prove it.

In this case, the increased marketing investment and activities yielded $50 million in new sales over the two-year period…just as the model predicted.

The Hell that is Business Travel

A few years ago I suffered through four days of business travel hell.  I saved emails and documented my nightmare so that one-day I might look back on it and laugh.  This story is dedicated to anyone has had “one of those days” or in my case, four of those days.  If you don’t believe in travel karma this may change your mind…pay attention to the time/date stamps and subject headings.  As they say in Germany; “Schadenfreude.”

Day 1 – Monday June 11

Travelogue  5:45 pm – arrive in Detroit early, nice airport… can’t believe we’re early.  Call Lara (my assistant) because I can’t find Mark’s flight information on the arrival board.  Lara tells me that his plane is delay won’t arrive until 7:30 pm.  No problem I’ll grab something to eat and wait for him and Sean.

—–Original Message—–
From: Mark
Sent: Monday, June 11, 6:03 PM
To: Scott Gillum; Sean
Subject: Flight delayed- still on the ground in ATL

Scott and Sean:

I’ve been stuck on the tarmac for about 90 minutes they say due to weather up North. No sign of anything at the airport taking off to the North.

What time do you arrive? Looks like 8:00 to 8:30 if we get out in the next half hour. Otherwise I’ll probably shoot myself… And then it won’t matter.

BTW, who booked me on Northwest?? Very tight, very hot in here…

What’s your status?

Mark

—– Original Message —-

From: Scott Gillum
Sent: Monday, June 11, 6:11 PM
To: Mark; Sean
Subject: Re: Flight delayed – still on the ground in ATL

I’ve arrived and am sitting in a nice air conditioned bar in the A terminal about to have a nice Greek dinner.

Got to go… my drink just came, call me when you get in.  Headed to the hotel for a good night of sleep after a big dinner.

Good luck and safe travels. Oh, here comes my appetizer.  Bye.

—–Original Message—–
From: Mark
Sent: Monday, June 11, 6:14 PM
To: Scott Gillum; Sean
Subject: Re: Flight delayed – still on the ground in ATL

Oooooooh.  You’re just getting me ramped up. Don’t expect any mercy from me when the moment is right

Mark

—–Original Message—–
From: Scott Gillum
Sent: Monday, June 11, 6:39 PM
To: Mark, Sean
Subject: Re: Flight delayed- still on the ground in ATL

Sorry I couldn’t respond sooner you really need your hands to eat Greek food.

You realize that I probably have cursed myself on the outbound flight now. 

Call me when you get in…unless it’s too late.  I really need my sleep to be on my game.

Travelogue 7:00 pm – Catch the Hilton shuttle bus to the hotel a quick 5 min ride.  Arrive at the hotel – “OMG, what a shit hole”.  Under-construction, the front is completely gone…contemplate getting back on the bus.   Suck it up and enter to find a lobby in the hallway.  Check-in, walk thru the Workout Area (a former hotel room) then thru the make shift restaurant which looks to be meeting room.  Diners don’t seem to notice that I’m walking thru with my bags.  Enter room and open the curtains to see what looks to be the motel from Eminem’s movie 8 Mile across the street.  Glance at the direction for the meeting tomorrow  – notice we’re a good 20 miles from the client, great…the meeting starts at 8:30 am.

Travelogue 8:10 pm – Mark and Sean land…decide to flee and find a hotel closer to the client.  Check and make a reservation at the Weber Restaurant & Hotel.  A well-known steak house in the area that happens to have added a hotel “get’s a lot of press for its indoor pool” according to a review on Google.

Travelogue 9:30 pm – arrive at Weber and check-in.   Clerk has a problem finding the reservation…finally finding it under “Scott Dillum”.

Day 2 – Tuesdays, June 12,  Departing on the 3:17 pm to Washington.  All of us are leaving at about the same time but to different locations.

Travelogue 1:00 pm – check voicemail and hear a message from Northwest Airlines that my flight has been canceled and I have been rebooked on the 9:00 pm flight.  Call Lara who works with the travel agency to book me on the 5:35 pm.

Flights departs from the gate but…

—–Original Message—–
From: Scott Gillum
Sent: Tuesday, June 12, 5:59 PM
To: Sean; Mark
Subject: What comes around…

Sitting on the tarmac… in the parking lot… grounded because of a weather delay…no time given yet for wheels up.

Great, they just shut the engines down…

—–Original Message—–
From: Mark
Sent: Tuesday, June 12, 6:34 PM
To: Scott Gillum; Sean
Subject: Re: What comes around…

Oh man… The sweet taste. I couldn’t reply sooner because I had to finish my frosty ice cream cone I just picked up after landing.

Mark

—–Original Message—–
From: Scott Gillum
Sent: Tuesday, June 12, 8:49 PM
To: Sean; Mark
Subject: RE: Perfect karma

Spending the night in Detroit…

Travelogue 9:00 pm – arrive back at the gate with tension headache and taste of bile in my mouth.   Buy underwear, shirt, socks, Tums and Tylenol.  Check into an airport hotel…not the Hilton.

—–Original Message—–
From: Sean
Sent: Tuesday, June 12, 10:09 PM
To: Scott Gillum; Mark
Subject: RE: Perfect karma

Sitting in Seattle and I can’t help but think you brought this all on yourself, Scott Dillum.

Regards-

Sean

Day 3 – Wednesday, June 13.  

Travelogue 6:00 am: Departing on the 6:30 am to Washington connecting to the 8:30 am Delta Shuttle to New York. No flights available to New York direct from Detroit.  Need to be at an important client meeting in NYC at 10 am.  No chance I’ll make it, but Chris is catching a 7:30 am flight on USAir and will be there in time to cover.  

—–Original Message—–
From: Chris
Sent: Wednesday, June 13, 8:05 AM
To: Lara, Scott Gillum
Subject: Also having flight issues. Will arrive at LGA at 9:30

I will have Lara contact the client.

Travelogue 8:30 am – arrive DC and make the shuttle to find Chris sitting on the plane.  No hope of being on time for the meeting now.  Ingest 2 Tums and Tylenol.

Return Flight

Travelogue 6:00 pm – call Lara to make sure my 6:30 pm shuttle is on time and to check weather condition.   Make comment that if there looks like there are any problems I will go to the train station.  Lara confirms that the flight is on time and looks good.

Travelogue 6:15 pm – check-in…flight is on time but notice 5:30 pm has been cancelled.  Plane departs gate on time.  Pilot announces that we will be parked for at least 30 mins waiting for our flight sequence.

Travelogue 7:00 pm – Pilot announces that he has no news but will update in 15 minutes…bile taste coming back, grab Tums.  30  minutes later…we’re #5 for take-off.  We’re airborne. Yes, finally making it home! 

Travelogue 8:00 pm – Pilot announces that DC has stop inbound flights because of storms in the area.   We’ll be circling Dover, Delaware for at least 30 minutes.  Search briefcase for Tums to find a banana that I thru in earlier that day….completely smashed…feels like wet oatmeal.

Travelogue 8:30 pm – Pilot announces that he has no news…but will update us again in 15 minutes.   15 minutes later makes announcement that they are still not taking flights and we’ll have to re-route to another airport to re-fuel.

Travelogue 9:15 pm – we land…in Baltimore.  No gate available, which is not a issue because…no one is available to bring the plane into the gate, or work the jet way, etc.  Tums are now gone.

—–Original Message—–
From: Scott Gillum
Sent: Wed, June 13, 11:21 pm
To: Lara
Subject: Didn’t make it back again…

Landed in Baltimore tonight.  Catching a cab…if I’m lucky.  I may or may not be in tomorrow.

Travelogue 9:45 pm – catch cab, 45 minute should be home finally.  Get on I95 to find that 2 lanes are closed…traffic slows to a crawl.  Bile returning, stomach churning, head out the window…possibility of hurling is very real.   Call home and announce to my wife that I’ve landed and I’m quitting my job.

Travelogue ? – lost all track of time but finally home….car at Reagan National.

Day 4 – Thursday, June 14  – Car services takes me to Reagan pick up car.

Travelogue 12:45 pm – finally back in my office with a spiritual healer having my aura adjusted.   Find that I now have a twitch above my left eye brought on by any mention of a storm, airport or plane.   Just submitted a PO request for a “Madden Cruiser.”

6 Tips to Better Market Yourself on LInkedin

Linkedin’s stock opened at $45 a year and a half ago, it now sits at $120.  Unlike Facebook, one of the primary reasons it has done so well is that it found its’ “killer app”early on, and built a business model around it.

For recruiters, Linkedin is the largest (now 200 million members) and most current database of business professionals in the world.  For job seekers, it’s a portal into new opportunities, connections and references.

To learn more about its capabilities as a recruiting tool, we posted an open account supervisor position for our DC office on Linkedin. The resumes have been sent directly to me for the past month.  Unfiltered by a recruiter or HR person, I got a direct shot of the power of Linkedin.  As the hiring manager, I learned a good deal about using the tool, and how job candidates can better marketing themselves for posted positions.

Because of the volume generated by Linkedin, hiring managers have the luxury of trying to find exactly what they are looking for without having to dig too hard to find it.  We quickly scan the email summary and the attachments.  As a result candidates need to:

  1. Read the job description – hiring and HR managers spend a great deal of time defining the role.  Take the time to adapt your resume to highlight those areas that best match what we are looking for don’t make us connect the dots because we won’t…we’re already on to the next candidate.
  2. Customize your cover letter – tell us why you’re the right candidate for the position in the cover letter, especially if you can’t link it on your resume. Make a compelling case as to why we should spend additional time looking at your resume and background.  A generic cover letter is a waste of time and a sure way to take yourself out of the race.
  3. Know that we will check you out – if we find someone we like, we’ll spend time checking your Linkedin profile (beyond the email summary below) our current and former employers, as well as your social profile.  For example, a person that caught my attention was eliminated from the process because I couldn’t find their last two employers on the web.  The learning – companies go out of business or are acquired all the time, make sure your resume reflects or notes that change.  We will “Google” you.  Slide1
  4. Brands count – recruiting firms use key word searches to pull resumes.  As for me, I scanned resumes also looking for those “key words.”  Again, because of the need for speed certain words “pop.”  Brand name companies caught my attention (whether the candidate worked for them or had them as a client).  Schools you attended, the types of skills you have, and your accomplishments, especially if they were award winning.  I also took notice of the number of Linkedin connections and references…it does matter, I’m looking for a good marketer.
  5. Using a connection/s worksleverage your Linkedin connections to find a common link to the hiring manager or job poster for an introduction.  I trust the recommendations of people that I’ve worked with in the past.  As a result, do your homework. The closer the connection to the hiring manager or recruiter the better chance it will get you noticed.
  6. What does not workI found the executive education programs to be confusing.  It took too much of my time to figure out if you graduated or only took a class.  Consider moving the later under skills or experience rather than putting in education.  I also found resumes that were more than 2 pages too long to read.  A summary is a good to have upfront, but don’t go beyond more than a third of the page.  Get into your experience quickly.

Talent is the lifeblood of an agency…for that matter most companies.  What you think, say and produce grows our business.  We need you, and we have jobs.  Help make it easier for us to find you, link your experience and expertise to our needs.  Hurry, I need someone…like yesterday.

The Disappearing Sales Process

Twenty-five years ago, I was a snot-nosed kid out of college who suddenly decided that law school was not in the future.  With a recession on, and needing to pay the rent, I took the first job offered and went into sales.

Having learned nothing about the profession in college, I picked up a copy of Miller Heiman’s Strategic Selling — still have a dog-eared copy on my bookshelf.  I learned everything I could about the buyer types, account management, and the sales process.  “Know the process work the process,” as my first sales manager used to say.

Typically, that process came down to 5-to-7 steps that generally covered the following areas below.

Slide1

Over the years, I found that working the process helped give you sense of control.  It came down to the numbers; calls, leads, transaction sizes or conversion rate.  Call on X number of qualified prospects to get Y amount of proposals, at Z close rate, and you made bonus.

But, research from Google and CEB entitled The Digital Evolution in B2B Marketing provides new insight into buyer behavior, and it challenges the conventional wisdom.  According to the study, customers reported to being nearly 60% through the sales process before engaging a sales rep, regardless of price point.   More accurately, 57% of the sales process just disappeared.

Slide2

What are buyers doing if they’re not talking to sales?  Well, they’re surfing corporate websites to identify and qualify vendors, instead of the sales forces qualifying them.  They are engaging peers in social media to learn more about their needs, potential solutions, and providers.  And they’re reading, listening to, and watching free digital content that is available to them at the click of a mouse.  No longer is the sales force the sole source of information.

What does this mean for sales and marketing? 

The study recommends focusing efforts in three areas; 1) improve marketing communication integration, 2) develop and activate a content strategy, and 3) strengthen multichannel analytics.  Nothing new or breakthrough here, but the study provides good examples of how companies are executing against each point.

However, I found a number of other points to take from the research.

  1. It is not all bad news – for products or services with low price points and/or margins, having customers self direct themselves through the sales process can help reduce the cost of sale and/or create leverage for the sales force.  In fact, in certain situations an organization will want to encourage and/or incent this behavior.  The research also found that some customers felt comfortable going through 70% of the process before making contact.
  2. Changing buying behavior – an old manager used to say that technology changes fastest, then consumer buyer behavior, and eventually, organizations.  The “57%” stated in the research makes for a good sound bite; the fact is, that number will vary, greatly by customers, transaction, industry, etc.  The point is that change is a constant; the question is how far ahead or behind is your sales and marketing efforts? Are you keeping pace?  The second question is, how would you know?
  3. Content Distribution – as the study notes, the sales force is still the most effective and important communication channel.  When developing the content strategy ensure that the best and/or most valuable content is not in the public domain, reserve it for the sales force.
  4. Time to Take Social Media Seriously – with well-informed prospects, sales reps have to quickly learn what buyers know or perceive about the organization, products/services and competitors.  Social media can help them better understand what is motivating buyers to take action, what buyers believe to be true, and perhaps most importantly, who they believe.

The Future

Business decision makers will continue to drive their buyer process deeper into the sales process.   As a result, relevant content will continue to escalate in value, especially content related to consideration and purchase drivers, and the business application of the product or service.

Social media and monitoring has helped many marketing organizations understand this trend and to make the transition from being content “dictators” to information “facilitators.”

For sales, the research may be an epiphany.  No longer can it be successful focusing solely on an inwardly directed process intended for reporting and planning purposes.

With ever-increasing knowledgeable buyers waiting longer to engage, sales has to transition from being a “product pusher” following a process, to an insight “provider” adding value to the buyers business.  As the study states, sales must deliver “pointed insights and evidence that seek to challenge an entrenched point of view among potential customers.”

Finally, it is time to recognize that we’re not in control, and perhaps we never were.  The traditional sales process is now obsolete; it is now time to follow the buyers’ journey.

Microsoft Kinects with Audience…Finally

Original post date 11/29/11

With the Christmas shopping season fully upon us, Microsoft’s Kinect motion-sensing game device is expected to be at the top of the gift list for many consumers. Last year, Microsoft sold 1 million Kinect devices for its Xbox 360 in 10 days, and in a recent poll it was at the top of the wish list for children 13 and older. But what you might not expect is that some of those orders are going to be coming from businesses.

Early this month, Microsoft launched Kinect for Windows SDK with a brilliant, new ad called “Kinect Effect.

The Kinect Effect TV Ad

Microsoft is pushing Kinect hardware for Windows SDK for business applications.  As staff writer Jason Kennedy from PCWorld states: “SDK will make it possible for programmers and dreamers from the world over to tinker with the system and make it do things Microsoft hadn’t thought of, and push the development of NUI [natural user interfaces] to the next level.”

What is noteworthy about the Kinect Effect ad is what it took for Microsoft to make it. Six years ago, in an interview with CMO magazine, Microsoft CEO Steve Ballmer confessed to a problem long known by many consumers of Microsoft products:

During Microsoft’s climb to the top of the software industry, rapid-fire product cycles often happened without much front-end input from the folks in marketing. Engineers would develop new software, pack it with bells and whistles, decide on an acceptable number of bugs and toss it over to marketing for a press release and a launch event.”

At the time, Microsoft had set out to change that course through an expansive and expensive relationship marketing initiative. Internally, it aligned marketing with product groups, created a “mea culpa” marketing campaign to reach out to past customers, and targeted loyalists hoping to turn them into advocates.

But because of its past transgressions, and a perception that many of its products were “necessaries” with little to pique the desire of consumers, Microsoft struggled with finding an ignition point, or something to connect customers with the brand and ignite their passions.

Well, those days appear to be over. With the Kinect Effect, the tech titan proves that it can be relevant, even desirable, with a campaign that is expansive, inspiring and incredibly human. The campaign asks audiences to dream about how they might use Kinect by inspiring them with images of people playing air instruments, a doctor flipping through X-rays, and a student deconstructing DNA with only hand motions.

The expansiveness of the idea allows Microsoft to reach, and hopefully inspire, all three of its targeted audiences, including consumers/users, businesses and developers.  Any one group can have the dream, but all three are needed for it to become reality.

Perhaps the most significant point of the ad is that it’s proof that the relationship marketing effort was a success, Microsoft now understands the strategic importance of the “front end” as Ballmer calls it.  Five years ago the message of the commercial would of been about the “bells and whistles” of the Kinect device.  This ad is an elegant and visually stimulating vision of what Kinect can enable, the virtually unlimited imagination of dreamers.

If Microsoft can continue to build this connection with the customer while retail store openings roll-out into 2012, it could transition itself from the company that makes the “have to have” product to the company that is the “want to have” brand.

5 Reasons Why Pinterest is a Must of Business Marketers

Pinterest is likely to be the hottest social media platform for business marketers—next year.

Despite the hype and the record-breaking growth rates, Pinterest is not ready for business marketers; the demographics are wrong, the categories are too consumer focused, and there are significant copyright and measurement issues to overcome.

Still, there is ample evidence as to why Pinterest could be huge for business-to-business marketers.  In many ways, Pinterest’s platform has the potential to offer far more value than Facebook and Twitter because of its ability to aggregate and naturally curate content. Here are five areas to watch:

  1. Traffic – Much has been made about Pinterest’s ability to drive referral traffic more than Google+, YouTube and LinkedIn. Traffic generated from pinning and repinning is important but most likely benefits small businesses(in particular, retailers). For larger organizations, the following areas may offer greater potential.
  2. Scannability  Business-to-business communication tends to be content heavy. There is a great deal of written content and it keeps expanding. Much like in the consumer world, business decision makers are becoming far more accustomed to searching visually. The Pinterest platform accelerates the process by aggregating and organizing images by category or theme, making it easy to search. For example, we are redesigning a corporate website for a professional services firm. Its “knowledge center” holds a deep repository of data-rich content and is now being reshaped to look like a Pinterest page to make it more inviting and searchable.
  3. Speed – That’s why it is essential to experiment with Infographics (visit Visual.ly for a starting point). As content becomes more crowded and competitive, audiences typically move faster. The average person reads between 200 to 300 words per minute, but visually it takes only 1/20th of a second to process an image. Mashable’s eye tracking study shows that Pinterest is also changing viewing habits from left to right, to top down the center, improving users’ ability to scan information quickly. Offering a “light visual appetizer” may stop audiences long enough for them to order the full content entrée.
  4. Natural Content Curation – This provides marketers the opportunity to capture deeper insights into audience consumption habits. For example, business marketers tend to organize content along the “buying process,” which is typically defined by steps in the sales process. Marketers may find that business audiences within Pinterest organize and consume content by categories or by a pinboard defined as “applications,” i.e., how they intend to use the product and not how they will buy it. This insight could help define the real purchase path and key influencers (pinners) along that journey.
  5. Affinity Data – As Scott Brave, CTO of Baynote, wrote: “Individual pinning choices are interesting, but there is even greater opportunity to analyze segments of people who express an affinity for a product or category in aggregate.” If available, this information could enable marketers to create new segmentation clusters based on common interests, which could help improve messaging and targeting.

“Clustering” could identify brand advocates, key influencers and connectors, local “hot spots” and new ideas for reaching them.

I realize that there are skeptics out there. I may even end up being one, but as we’ve learned with other social media platforms, if you don’t think there is value for the business marketing, there won’t be. Pinterest holds great potential, but that “potential” will only realized by those who seek to define or dare I say, “pin it.”

Apple’s Biggest Innovation – The Swipe?

Years from now, will we look back and realize that Apple’s biggest innovation was not device, but rather a physical gesture?

The right-to-left swiping motion used with Apple devices to sort through photos or to navigate certain apps is quickly altering how we seek and absorb information.

David Payne, chief digital officer of Gannett & Co. Inc., parent company of USA Today, delivered this point eloquently at the 2012 Mid-Atlantic Marketing Summit. In his opening speech, he pointed out that the digital world changed when Apple introduced “touch” with the iPod and iPhone.

Touch screens had been around for years, but Apple brought them into our daily lives, in particular with the iPhone. As a result, the way we engage and interact with devices has changed, as evidenced by the dramatic decline in sales of the BlackBerry. And now with the explosive growth of the iPad, it’s about to change again. This time, though, it will be even more dramatic.

Payne referred to the “swipe” as the game-changer, or as he called to it, “petting the cat.” This new right-to-left world has caused Gannett to rethink the traditional “top-to-bottom” experience of its websites, in particular how it organizes content. As evidence, Gannett has incorporated this new “petting the cat” thinking into its new USA Today app (it’s worth downloading).

Last week, Fast Company ran a story on a new technology MIT developed that enables users to drag files across devices with a swipe. Coincidentally, it’s called Swyp. Nathan Linder, a PhD student in the fluid interfaces group at the MIT Media Lab, said, “Our framework allows any number of touch-sensing and collocated devices to establish file-exchange and communications with no pairing other than a physical gesture.”

Apple’s impact on design has enjoyed much acclaim and is noticeable in almost any new technology designed. But what may be overlooked is the impact Apple has had on the user experience and how users interact with technologies. And that impact goes far beyond just Apple devices.

For example, one attendee mentioned that his 3-year-old went up to the television and tried to “swipe” it to change the channel. A colleague mentioned that she is  constantly cleaning her computer screen because her kids try to open photos on her desktop by touching them. Apple has, and continues to have, the ability to change consumer behaviors, requiring the rest of the world to catch up.

Marketers must now realize that we are a step behind. We recognize the importance of adapting digital assets to fit the device, but we haven’t thought through the ramifications of “petting the cat” behavior. The swipe is here to stay. It’s now time to reset our navigation point from North to South to East to West.

5 Mobile Advertising Trends for the Holiday Shopping Season

Black Friday is like the “annual report” for mobile advertising – a yearly snapshot of how mobile ads are progressing and evolving. The big challenges are perennial – the gap between time spent on mobile and ad dollars allocated, consumer perception of mobile ads as annoying and intrusive, and low click rates. But every Black Friday, innovations and learnings from the past year move the needle on these challenges.

I asked John Shomaker, the CEO of AdJuggler, a digital ad management technology and media services company, for five trends we’re likely to see during this year’s shopping season:

1. Smart, hyper-local mobile campaigns will create a new shopping experience.  Mobile advertisers are figuring out more effective hyper-local, geo-targeting campaigns that reflect the way consumers want to combine in-store shopping with product research on their smartphones. According to Shomaker: “Consumers want to find deals on their mobile devices they can use in physical stores they’re out visiting. Smart mobile advertisers are geo-targeting the perimeter of their physical store locations, and those of their competitors, with ads that offer special in-store promotions. Layer on top of that contextual relevance like keyword targeting and you can serve a product-specific creative that links to a relevant product page and promotion on the store’s mobile website or app, enhancing the in-store experience. The mobile ad and its click-through becomes an extension of the path the user is on; it’s no longer annoying and intrusive.”

2. Behavioral relevance will scale to reach holiday shoppers.                         “Targeting mobile users by behavioral segments, such as those from BlueKai, and executing these campaigns at scale using real-time bidding [RTB] is making us better at being relevant,” according to Shomaker. Pulling in social “likes” and shares and adding those to the audience segmentation model further improve the relevance of behavioral targeting. As mobile ads become less annoying and more relevant, clicks increase, thus creating an empirical basis for more mobile ad spend.

3. Successes are likely to occur in social, local and mobile.                                 John Doerr of Kleiner Perkins Caufield & Byers coined “SoLoMo,” to predict huge business value as social, local and mobile converge.  Doerr’s view is that on Black Friday, we’re going to see SoLoMo become reality. The Wall Street Journal reported that this past year, P.F. Chang’s “Lunar New Year” promotion saw 1 million people in one hour click, retweet or otherwise interact with a promoted tweet offering dining rewards to users, including those who searched on “Chinese New Year.” Shomaker says: “We saw that 70 percent of the audience response to this SoLoMo campaign was via a mobile device. P.F. Chang immediately shifted the entire campaign budget to mobile.”

4. Consumers will overcome the “fear factor.”                                                           IAB Rising Stars Program keeps user context and teaches audiences that it’s “awesome” to click mobile ads. Users fear the unknown, and this likely plays a role in today’s low response to mobile ads. Will clicking a mobile ad take you out of your app and lose your context? Not so, according to Shomaker. “The ads aren’t designed like that, because no one wants an ad to take them away from the place they want to be. The ‘IAB Rising Star’ ad units will allay those fears.” The Mobile Filmstrip unit, Pull unit, Adhesion Banner, Full-Page Flex unit, and the Slider unit take great care to bring brand assets into the ad rather than requiring a jump outside the app or a loss of context. It also all leverages touch, to keep mobile users engaged and in control.

5. Integration of mobile ads into multichannel campaigns will result in better lift.    It’s widely believed that Black Friday will be a “multichannel holiday” because advertisers have learned to improve lift by integrating smartphone ads, tablet ads, Web, TV, even earned media/owned media/paid media campaigns to improve lift. “This last one is especially worth watching,” states Shomaker. “Display campaigns [i.e., paid media] now can feature a call to action in the social experience – for example, preference sharing or a social game. The interstitial page of the ad links to a social media marketing application, which is located at a deep link within the brand’s Facebook page [owned media]. Users ‘like’ the brand and socially share their preferences with all users in their social graph [earned media].”  

This lift in social sharing, or earned-media lift, has proved important to marketers. The odds of a Facebook fan purchasing something from a brand are 5.3 times higher than for non-fans, according to Forrester Research’s report “The Facebook Factor.”

All told, mobile promises to become a much larger part of the marketing mix this Black Friday. It will also provide a window into how quickly the third screen gets adopted into commerce as a whole. Happy shopping.