Dan Sixsmith: Marketers May Be Missing Their Chance

Boston Consulting Group believes that 1/3 of publicly traded companies will be gone in 5 years. Learn why this may happen and how the changing dynamic between buyers and sellers is a critical component of determining your company's fate. I took to the stage at Salesforce.com's Dreamforce Conference to discuss the tectonic changes in the marketplace and which companies are leading the charge to success on this new playing field.


Dan Sixsmith: The New Critical Change Marketers Are Missing [VIDEO]

The New Marketing: Why You're Uncomfortable

The Boston Consulting Group's latest research is eye-opening: 1/3 of publicly traded US companies will be gone in 5 years....huh? Digital disruption will continue to reek havoc on corporate America says BCG. Why? One word: change. Organizations that are not able to properly manage change are going by the wayside. Those that manage change by creating it, anticipating it, embracing it, staffing for it, training around it and communicating during it are thriving. It's simple, says BCG: Change or die. 
What does this mean for marketing leaders? The playing field has changed. Buyers and consumers have changed. They want instant gratification, personalized content, relevant messaging and a consistent and continuous conversation with marketers across all channels. What are many marketers delivering? One-off campaigns, disparate messages across channels, and messaging that lacks personalization and relevance.
Marketers are scrambling to re invent themselves, but old habits die hard and it's easy to stick with what is comfortable. How are marketers feeling about their efforts?
40% of marketers want to re invent themselves, yet only 14% know how to go about this (Adobe)
54% of marketers say that to be effective in the new landscape they will need to take more risks (Adobe)
Only 44% of marketers actually have a strategy (CMI)--this is puzzling, no? "Execution without strategy is chaos"(Ardeth Albee, "Digital Relevance" read this book!)
BCG's prediction doesn't seem so far fetched after reviewing these stats.
So, what can marketers do to make sure they are not left behind as the new reality takes greater hold?

Change Your Mindset (and maybe your company):
The post recession economy has left a cloud of status quo hugging and playing not to lose which needs to be abandoned. A dramatically changed landscape requires experimentation and a new strategy. Leaders need to step forward and blaze a path. If your company is not embracing change, you need to leave and go somewhere else where they get it. Chances are your company is going to be joining BCG's list of victims anyway.

Conversations vs. Campaigns: In a prior article, I discussed why campaigns are less effective than ever before (see "Marketing Campaigns? So 2014!" http://ow.ly/3yhkqL)
And here are a few more reasons why campaigns should not be the centerpiece of your strategy anymore: campaigns start and stop yet the buyer lifecycle continues on sometimes as long as 12-15 months; the prospect's needs are changing quickly and campaigns by design can't react quickly enough; campaigns are typically different within each channel leaving a prospect with a potentially disjointed message. Prospects want a cohesive story yet campaigns have the tendency to push out chapters from different books. So how do we conduct effective conversations?

Systematic vs. Random-There must be a digital ecosystem which works together as opposed to haphazard dart throwing. Begin by evaluating how your current digital marketing efforts are performing vs. KPIs. Then sketch out the proper balance of ongoing pull content with scheduled push content (yes, campaigns still have a place) and a big splash once or twice per year. Google is a big proponent of this approach. The proper creation, orchestration and management of the ecosystem will ensure you're carrying on relevant conversations (ping me for more detail on how best to achieve) The brands and organizations that are taking this approach are realizing a 15-25% improvement in marketing ROI.

Dynamic vs. Static Content: Newsflash! Content isn't king anymore. There is a ton of it that's being force-fed down uncaring prospects' throats. The Internet is awash is meaningless content. Only 30% of marketers believe their content marketing efforts are effective (CMI). What to do? Quality is better than quantity. Dynamic and relevant content is now king.  Content which advances the conversation with prospects is king. Simplicity is king. Authentic storytelling is king. Visually engaging content is king. [Interactive Video, Virtual and Augmented Reality are poised to break through] Data needs to be leveraged to pinpoint the right messaging and content to deliver and carry on a conversation with prospects.

Outside In vs. Inside Out Messaging- The norm for decades has been inside out messaging, meaning its about us first--our team, our wins, our products, features, awards and so on. This type of messaging is similar to going on a date with a person that talks only about him or her. Not much fun. No second date. Now we know why only 7% of sales people get a second meeting (Forrester). Outside in messaging takes a customer first approach. What are the challenges, the issues, and the needs that you can solve? The messaging in your content and the way sales engaged with customers needs to be outside in. Customer issue first, insights you can bring to the table next, your company and solution last.


What is your experience around the New Marketing? What is your company doing to stay off BCG's endangered species list?  Are you a disruptor?  A maverick?  A leader? Or a wait and see, play it safe, status quo hugger? What is your personal strategy for success?

Digital Marketing: The Future Isn't What It Used To Be

“When you hear marketing, most people think advertising. While we of course do that, we have made sure that marketing has been redefined as innovation. We expect our marketers to be the champions of ‘what’s next."-Beth Comstock, CMO/General Electric 

Hope you all had a great summer. Let's see what's been going on. Some startling new research:

*97% of CMO's told analyst firm Forrester recently that they will need to do something they've 'never done before' in order to succeed in the new digital landscape. 

*40% of marketers said they do not have the time to effectively manage all aspects of their digital marketing efforts(Zmags)

*$26 Billion in advertising and marketing accounts have been put into review to date in 2015 with many brands questioning the value of AOR relationships.

*At last count there were over 2000 marketing technology players on the scene.

The marketing world is grappling with tectonic changes and as Steve Jobs said in 1983: "the future isn't what it used to be." To succeed in the new marketing ecosystem, it is becoming clear that it's time to write a new playbook. Along these lines, here are some key questions you need to be asking yourself, your team, and your organization:

1. How Do You Measure Up?

You have rushed to embrace digital, added staff and budget. Where do you focus your attention and your dollars, though? Mobile? CRM? Isn't Customer Experience supposed to be key? How about native ads? Are we running enough? Do we have enough Likes? It's overwhelming, but you need to start by putting a stake in the ground and evaluating where you are in each of the key components of digital marketing vs your KPIs. Your performance will inform your next moves.

2. Are you simply conducting random acts of digital?

Once you have evaluated your progress against your goals, you now need to make adjustments to improve. However, you need to move from doing random acts of digital to creating a seamless and holistic digital marketing blueprint. Your marketing ROI depends on successfully moving your organization in this direction. In fact McKinsey tells us that companies that are successfully operationalizing digital are seeing 10-25% improvements in marketing effectiveness, customer engagement and ROI. 

3. Are You Stepping Out of Your Comfort Zone?

Innovation is an overused word. Beth Comstock of GE wants marketing and innovation to be used interchangeably. There is still a 'sea of sameness' out there when it comes to marketing. Embracing my point #1 and #2  will put you in lockstep with your customers, prospects, fans and advocates and pave the way for true innovation. There are several new emerging areas which brands can leverage. Next gen interactive video, virtual and augmented reality and drone technology are beginning to be more deeply explored. Comstock thinks marketing needs to be leading the way to 'what's next."

4. Are You Aligned With A Next Gen Agency Partner?

And along those lines, it has become clear that the present day agency/client model is evolving(did someone say broken?) New ideas are only part of the equation. Execution is every bit as important.  The marketing agency of today and beyond needs to be part consultant, part market research and part production. Or better yet, perhaps the market will create a new category, that sits atop the functional AOR categories and leads the charge.

Its time to take your random acts of digital and turn them into a digital transformation that will propel your organization to the top.

Dan Sixsmith is CMO and Partner @ Augmento

He is a VP at Alinean, Inc and Chief Content Officer at "The Digital Advantage by Dan Sixsmith."

Dan also co hosts the Podcast, This Week In Digital Marketing subscribe here: http://t.co/H6wqFueAB2 

Marketing Campaigns? So 2014

"Why make...quarterly reviews of budgets and monthly controls, when our consumers are changing their behaviour hour by hour?" -Lars Silberbauer, Lego

Were these guys at your last planning meeting? If so, they were probably talking about marketing campaign calendars. With marketing evolving so quickly, its becoming apparent that real time marketing is critical to successful business outcomes in 2015 and beyond. And this means that the planning out of traditional marketing campaigns could be going the way of the '70's leisure suit. A recent study completed by Wayin, a social media and contextual content company states that, "the most effective strategies are now powered by real-time moments that require brands to be agile and creative on the spot."

Instant gratification is no longer just for your 5 year old at home. Your coveted prospect is on the lookout for your product or service and you'll need to deliver the content, experience and presence she's expecting when she's expecting it. Decisions are taking place at a faster pace. Will you be there when that decision occurs? Or will your standard email arrive 2 days later? Not only that, but you'll need to cover your bases in all of the channels that consumers frequent including websites, mobile apps, retail stores, call centers and social channels.  According to the study, marketers are beginning to weave in real time tactics into their marketing mix and it is paying off. 98% of marketers in the Wayin survey reported a direct positive revenue impact from their real time marketing(RTM) efforts, with 59% planning to increase RTM budgets for next year. Yet while marketers acknowledge the need for RTM and its value, many are struggling to get their arms around it. Further, it is such a disruptive new approach that it is being met with a heavy dose of reluctance. This means though that the early adopters have a chance to blaze a trail and lead their organizations to new levels of success. Let's discuss this in more depth including how marketers are leveraging this powerful strategy to drive revenue for their organizations.

What are the benefits Real Time Marketing? 

Real-time is so much more than just a comms strategy, marketers should start to view it as a business model.This according to Lego social media director, Lars Silberbauer. See the great article here: http://ow.ly/3y0CPb So what are the early benefits of RTM?

1. Higher response rate: The right offer for the right customer delivered at the right time is marketing that is so relevant it feels like a service(IBM). Response rates for real time marketing efforts average in the 60% range(Digital Alchemy)- a staggering number which has contributed to the steep ROI figures attached to this movement.

2. Speak to the customer 'in the moment' -You need something? We have what you need! of course, the Oreo Super Bowl Dunking In the Dark tweet comes to mind as leading the charge for real time marketing. It capitalized on the power outage to connect with millions of potential customers and followers. RTM is going one step further today to leverage data to personalize messaging based on past current and future behavior. Propensity models are the foundation of effective RTM activities. 

3. Greater utilization of content: Marketers often complain that much of the content they create goes unused. However, the always on strategy has dramatically increased the need for content. What's more, the personalization required by today's high expectation customer, the increasing evidence of 'binge' consumption of a brand's content will likely drive a greater incidence of content utilization.

4. Build loyalty/customer relationships-A leading global hotelier is using real-time marketing to enhance loyalty and increase the amount of money spent during each hotel visit. A major financial institution is using event-triggered transactional and real-time communications to increase product penetration and turn customer behaviors into profitable product investments(see IBM article: http://ow.ly/3y194w).

The term 'marketing campaign' is in danger of moving to the trash heep much in the same way the term 'digital marketing' is going to simply be referred to as 'marketing.' Real time marketing is addressing many of the concerns organizations have traditionally wrestled with over the years and is equipping marketers to successfully compete on the new customer interaction playing field. Have you deployed a real time marketing initiative? Do you see it as a new business model? Please weigh-in!

Dan Sixsmith is a VP at Alinean, Inc.

He is Partner/CMO @ Augmento and Chief Content Officer at "The Digital Advantage by Dan Sixsmith."

Dan also co hosts the weekly Podcast, This Week In Digital Marketing subscribe here: http://t.co/H6wqFueAB2 

Twitter:@DigitalAdvantg

Meerkat: http://meerkatapp.co/digitaladvantg

"No Decision" Is No Excuse

When Sirius Decisions stepped forward last month to announce that a commonly held belief about buyers and sellers was not true, it got me thinking. What other falsehoods are out there?

Well, I found another one, but first let’s recap the Sirius Decisions statement. As espoused by several analyst firms, B2B buyers were thought to be anywhere from 57% to 85% complete in their decision making process before contacting sales. Forrester proclaimed that 1 million B2B salespeople would disappear because of this reality. But Sirius Decisions told us at their Summit in Nashville recently that both statements are pure bunk. Firstly, the buyer’s journey today is so disjointed that it cannot be generalized. It's a highly personalized experience and unique to each company and stakeholder. Secondly, yes, buyers are doing more online research and they are more knowledgeable, but they still need Sales. In fact the #1 piece of content requested by buyers today is a sales presentation, according to SD.

So, here is another 'fact' on which I am calling BS: 58% of pipelines consist of deals where there is a ‘no decision.’  What is a ‘no decision’ I began to ponder? Then I read this great post by Kevin Temple. Read it here: http://ow.ly/3xWelO . Taking this post one step further, the reality is that anything but a yes to move forward is a ‘no.’ It is a decision and it's No, they are not buying your product. And chances are they didn’t get back to you to tell you that, so it gets classified as a “No Decision.” But they did make a decision—and that’s not to buy. Or they got back to you to say that it’s going to be back burnered right now. That is not a ‘No Decision’, it’s really, a "NO, we are not doing this."

According to Insight Squared, "the amount of time an opportunity spends in a stage has a high correlation to its likelihood of becoming a won deal – if your opportunity has been stuck in the pipeline much longer than the typical won cycle then this opportunity is less probably to be won." In other words, get it off the street--time is not your friend ( http://ow.ly/3xWkWv ).  Or pull it out of your pipeline after it's clear that it is not going to happen. Send them back to nurture.

So if 'no decision' is a myth, what's the approach?

1. Reality Check Your Pipeline: Kevin Temple says 'qualify out' which is another way of saying push for the 'no.' The onus is on sales to close and take control of the process. Ask the difficult questions, understand the process and push the tempo. Temple's research shows that sales productivity, quota attainment and selling price go up with this approach.

2. Demonstrate Why the Status Quo is Costly: At Alinean, http://ow.ly/3xWnPV , we work with many large organizations that look to tout their benefits right out of the gate. However, Neuro Marketing science tells us that buyers are more likely to move away from a pain than toward a gain. We counsel our clients to first help their prospects understand that there is an issue which needs to be solved and then to quantify the cost of doing nothing. Similarly, if you can demonstrate the pain of not moving forward with your deal, your chances are going to improve. We create interactive sales tools that help guide you through this path. As a result, Alinean customers are growing revenue on average by 25%. One of the big metrics? Dramatic decreases in "No Decisions" and more wins.

3. Close Early(before it goes to "The Committee"): Making decisions today has become more complicated than in the days before The Great Recession. Your prospects are still risk averse and frequently look for buy-in from additional stakeholders. The top sellers are removing doubt, demonstrating value and sealing the deal early, keeping the decision out of committee. 

Like Mike Tyson is his reign of terror on boxing in the '80's and '90's, finish it early.

4. Build Consensus: CEB emphasizes the importance of aggressively identifying all of the members of the decision committee and then building consensus among them. This is easier said than done, and requires interactive content, financial justification and experienced sales people who are comfortable asking questions, sometimes leading the witness and connecting all of the dots.

Like Columbo on the case, Don't be afraid to ask that last question! 

Much has been made of how dramatically marketing has changed over the past 2 years, yet sales has also radically changed. Successfully closing business today requires an enhanced set of tools, the ability to unearth key information, swiftly picking up the conversation from marketing and getting right to the point. So remove No Decision from your vocabulary, and instead close them or qualify them out and move on to your next deal.

 Dan Sixsmith is a VP at Alinean, Inc.

He is Founder and CMO at Trammel Holdings and Chief Content Officer at "The Digital Advantage by Dan Sixsmith."

He is also co host of the weekly Podcast, This Week In Digital Marketing subscribe here: http://t.co/H6wqFueAB2 

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Does "Agency Of Record" Make Sense Anymore?

There is growing evidence that a massive sea change is underway in the brand marketing and advertising agency world. The pace of agency reviews has quickened over the past two years. In the past month alone, a number of high profile brands have put their media accounts up for review with a staggering total of $25B now in play. In addition, according to a recent study, agency tenure has been declining steadily as clients continue to consolidate, with 51% declaring that they have been reducing their roster in the past 3 years, and 44% say that they plan to consolidate further. And this is just the tip of the iceberg. Brands do not want to be tied down to their agencies for long chunks of time. Agency consultant Avi Dan recently wrote of a ‘phenomenal shake up on Madison Avenue.’ You can ready Avi's great article here: http://ow.ly/3xVEL5

So is this the beginning of a new playing field for agencies and clients? Here's why there is new and massive opportunity for marketers and agencies.

1. Marketing has changed more in the last two years than in the past 50. By definition, the way brands select and work with agencies needs to change-dramatically! The level of complexity, the art and science straddle, understanding and leveraging data, the explosion of channels, the availability of information and how to seam it altogether into a cohesive experience for the customer are just a few monumental challenges marketers are tackling. Coke announced recently that they are adding Ogilvy, a creative shop(typically not involved in media reviews), to their media agency short list, declaring that they are also reviewing their agency 'model'. 

2. Agencies’ cost structure-With many individual challenges to solve as a marketing leader, can a brand afford to keep spending big bucks and tie the knot with one agency that may or may not be able to help them solve all of their issues? The big agency cost structure continues to balloon and with profitability levels challenged, prices for big agency work must to press higher. At cross purposes now are the marketers that need to work more efficiently and surgically to address their pain points.

3. Rise of more project focused assignments-The challenge-focused approach to marketing has increased the number of project based assignments doled out. With unplanned issues becoming the norm, as is re-writing the script, marketers are more apt to be on the lookout for agencies on a project basis that can solve the matter at hand.

4. RFP’s are a waste, right? There has got to be a move away from RFP’s. What as waste of everyone’s time and money. CMO’s need to skip over the laborious agency selection process and instead network and social search their way to solving issues, leveraging the most suitable agencies along the way.

5. What have you done for me lately? The success of an agency in the past does not mean a thing about success on the new marketing playing field. New companies are hitting the market that are delivering results that marketers are looking for in the digital/mobile world. And perhaps the big players of yesteryear will not be the go-to shops of today and tomorrow.

6. Need for speed-Brands need to stay relevant and competitive. They need to be ‘of the moment’ so therefore time is of the essence in hitting the market and capturing opportunity. The nimble agency will be more valuable in pushing through projects quickly, effectively and efficiently. 

7. Specialization Rules-The complex nature of the marketing business today, whether offline vs. online (and the channels within each), paid vs. earned, native vs. banner, social/influencer, data, analytics and technology, requires a specific expertise for success. Can one agency really tackle all of your marketing issues? 

Marketers are moving away from traditional approaches to their relationships with agencies forcing the big agencies to adapt yet again. Smaller, entrepreneurial shops are gaining traction. For agencies, hundreds of millions of marketing dollars will be up for grabs in the coming 12-18 months. For marketing leaders, the stakes have gone up, the puzzle pieces have increased but the ability to take your brand to new levels has never been more attainable. 

Dan Sixsmith is a VP at Alinean, Inc.

He is Founder and CMO at Trammel Holdings and Chief Content Officer at "The Digital Advantage by Dan Sixsmith."

He is also co host of the weekly Podcast, This Week In Digital Marketing subscribe here: http://t.co/H6wqFueAB2