Simple Learnings From a Tragic Loss...

This past weekend, we suffered the loss of a colleague at our company.  It got me thinking about how I had interacted with this individual over the past year.  Probably 75% of the interactions were via email, a social media platform – LinkedIn, Facebook, Twitter, etc. 

However, in retrospect, I’ve realized the electronic channel of communication has limitations and it seems I took for granted the importance of picking up the phone, meeting for lunch… the true personal touches which mean so much given today’s fast-paced society.

So as we post on LinkedIn information about business, as we post to Facebook about our kids, as we post to Twitter about our immediate thoughts…let us not forget we are human first and picking up that phone, meeting for lunch is more important now than ever.

Scott 

Are Our Metrics Focusing on the Right Things?

It seems like every other email newsletter I receive has articles regarding metrics about social, mobile, engagement, likes, content views, GRP’s and the like.  And I’m not disputing the point of each of these are important in their own universe…. And if you can connect them, all the better.

However, let’s go back to the fundamental reason for marketing.

“All marketing investments, across ALL areas/functions/businesses, etc. is to do one thing…SELL”

     

If the above weren’t true, why would the board of directors, management and shareholders agree to marketing budgets?  Marketing is a fundamental investment with both short and long-term financial goals.  Short-term – sell product immediately, drive leads for sales, increase eCommerce traffic…. Long-term – build the brand, create advocates for the brand, drive high value leads, increase price, etc.

Which brings me to my concern…it seems to me we’ve taken our eye off the ball on the metrics which truly matter and support the reason for marketing investments.  So what top-level investment metrics should we regain focus on?  My key ones include:       

1.  Incremental Gross/Net Revenue per total marketing dollars spent

2.  Customer Acquisition Cost

3.   Both #1 and #2 but revenue per marketing employee

4.  Customer Cross Sell Ratio

5.       Recency/Frequency/Monetary Value customer model – check out Don Libey’s extensive research on this model

6.       Customer Satisfaction Levels – get down to specific detail items you’re working on and track them consistently

7.       Customer Lifetime Value

8.       Marketing Investment Payback Time

9.       Customer Attrition Rate

10.   Customer Segmentation Model and Marketing Investment

Certainly, I have additional ones I could list, but keeping things simple--the above 10 help focus your investments, strategy and executions on the things which matter.  In addition, when the boss calls you in the office, you speak management language vs. the marketing babble.

Scott

LinkedIn – The New Reverse “Spam-a-Lot”

LinkedIn.com has become the latest digital spam system.  I noticed this issue a little more than 18 months ago, when I began to get numerous s solicitations from a host of odd individuals and companies.

We all know the purpose of LinkedIn is to connect people across business lines, regions, etc.  And I concur this is a great business value.  However, I’ve found a few disturbing issues as well.

-          Reverse Invitations -- Is where someone contacts you and asks you to send them a LinkedIn request.   So you ask yourself, “Why wouldn’t they invite me?”  More than likely the answer is LinkedIn has flagged them as spammers so they can no longer send invitations without knowing the email address of the invitee. 

-          Invitation Bait and Switch – where you receive an invitation from someone who claims to be a “student” or such with very low current LinkedIn.com connections.  They also seem to all have graduated from schools in EMEA. 

So I tested both situations over the past 6 months by complying with only 1 request from each of the above. 

What happened next nearly stunned me… within 72 hours’ both my email spam folder and LinkedIn profile were overwhelmed with offers, reverse invitations and the like.

Fast forward to today, the number of spam emails is still high, but the number of LinkedIn reverse invitations has decreased by ~40% my conclusion, these dubious invitations are merely a way to consolidate and sell email addresses to fast moving email spammers.

So beware of those invitations…

Scott

I read this article on iMedia this weekend on privacy.  Yes it's a big topic and some marketers and businesses don't want to talk about it.  They keep thinking "net neutrality" or some form of it should rule.  Let me give you an example of a real live example where I see issues with social and privacy.

Ok, you've got a Facebook account with 500 friends.  You happen to work for Hyatt Hotels -- a great brand.  But you're looking for a vacation and happen to land on a travel site that has an awesome vacation package to Europe and you click the "facebook like" button.  No harm, no foul -- right?  Well don't be so sure.  Let's say that facebook like posted a like for your main competition -- lets say Hilton Hotels.  And when you click it, it posts on your wall that you "like Hilton Hotels" and that populates to your 500 friends... and guess what your boss happens to be a Facebook friend.

Your boss and company get pissed and fire you because you've disgraced the brand.  Who are gonna file a lawsuit against?  Your former employer, Hilton Hotels, or Facebook?

Because when you clicked the like button you had no idea it would post to your wall.  There wasn't a warning or a small privacy statement telling you about what you're getting ready to do.

You see my point?  Yes, you might be a total ignorant web weenie... but remember the gal who sued McDonalds because she spilled hot coffee in her lap and said the cup didn't have a warning.

I've yet to hear about such a lawsuit, but I bet ones' coming.

Scott