The last five years has seen two, separate trends hit marketing. Firstly the use of technology has skyrocketed as digital channels such as the internet, email and social media have risen in importance. Secondly, marketing has increased in importance as businesses across every sector realise that it is central to winning and retaining customers, reaching stakeholders and engaging with external audiences.
At the risk of showing how old I am, it is worth comparing the tools I had in my first PR job twenty something years ago, and what I have now. I started with a computer (yay!), and it even had email – but that was purely internal to the ten person company I worked for. I could just about access the internet, but it was text based, rather than the colourful World Wide Web we know today. If I wanted to communicate with a journalist I looked them up in a paper-based directory and called them. If I needed to give them information I wrote them a letter, printed and posted it. The same applied to press releases, which were faxed over by clients, laboriously re-typed, faxed back to the client for checking and then sent to a mailing house for distribution. Press clippings were sent through the post by a monitoring agency, and I then stuck them on large boards to show to clients or made up physical cuttings books. And I worked for a technology PR agency, so at the advanced end of marketing at the time.
Now marketers have access to a huge variety of online tools and devices. You can find out information instantly about a journalist through the web and send out a press release to the whole world at the touch of a button through mailing software – not to be advised unless you want to get a reputation as a spammer. Email and social media have replaced the telephone as primary communication channels, while digital marketing technology is available to run campaigns from start to finish. You can target audiences based on what they have searched for, what they have talked about on social media or simply the pages they’ve visited online. Marketing has gone from being behind the curve on technology use to being one of the most active spenders on IT. Much of this has been driven by the move to digital, with a corresponding rise in status for marketing chiefs. Rather than Marketing Directors, often reporting to sales, more and more organisations now have Chief Marketing Officers (CMOs), with a seat on the board and budgets to match.
In 2011, Gartner predicted that the CMO will spend more on tech by 2017 than the Chief Information Officer (CIO). People scoffed at the time, but it looks like this is well on the way to becoming a reality. There are now more than 3,000 marketing technology vendors, all aiming to support agencies and in-house marketers in their roles. This frankly dizzying Tube map-style infographic tries to make sense of their relative positioning, but was probably out of date as soon as it was released, such is the rate of growth and innovation.
I’ve longed argued that marketers in general, and PR people in particular, need to change and embrace technology if they want to continue to be relevant. However they shouldn’t just focus on technology for its own sake, but use it to support what they do – engaging with customers and creating long-term relationships that benefit both sides. There’s no point running an award-winning Facebook page if it doesn’t link to your marketing and business objectives and is measured solely by the number of Likes it delivers.
So I’m suspicious of the latest marketing trend – the introduction of the Chief Marketing Technology Officer (CMTO). It aims to bridge the gaps between stereotypically creative marketing people and the more conservative, risk-averse IT department, finding a middle ground so that marketers don’t make the wrong choices, but aren’t held back by out of date IT procurement practices. Despite its spread in the US – Gartner says that 80% of organisations have someone filling a CMTO-type role, even if it isn’t called that, I don’t believe that marketing (or IT) needs one. It is surely better to get both marketing and IT to talk to each other, and learn how to co-operate, than to essentially try and create a half-way house of someone with the range of skills to talk both tech and marketing. If the CMTO sits in marketing you just end up with a silo-based, departmental approach, rather than looking at the wider picture of what the business needs. Technology is a vital part of every department’s role, but that doesn’t mean it is good for them to operate in isolation. Marketers should continue to improve their tech knowledge, but actually use their communication skills to talk to IT and get their help in navigating the marketing tech maze. Otherwise the risk is that money is wasted and the whole business suffers.
This month marks several major anniversaries in my life. I’ll have been married for 15 years and July 1st was the beginning of my sixth year of running my own business. Leaving aside everything I’ve learnt from my marriage, here are the top five things I’ve learnt after setting up on my own:
1. Network, network, network
It doesn’t really matter what type of business you are, the easiest way to bring in new revenues is to be recommended by someone else. That only happens if you both do a good job for existing clients, and more importantly network with the community around you. Trekking out after work to meet new people can seem a bit like going to the gym – you know it is good for you, but you can invent 1001 excuses why you should just stay at home. Just like physical exercise, you need to overrule the little voice in your head and spend time networking. At the very least it’ll get you out and talking to people with potentially similar interests, or who offer complementary services – and it will also increase your public presence and ensure companies know who you are. And networking doesn’t stop there – connect with people on LinkedIn, follow them on Twitter and make sure you make the effort stay in touch.
2. What goes around comes around
This may sound a little Zen, but I’m a firm believer that being nice to people, and helping them, stores up good luck that could help you in the future. Give people that can’t afford to hire you advice, connect them to people that can help them and be supportive of the community around you. Even if it doesn’t bring you direct business you’ll feel better about the world around you and know that you’ve made a bit of a difference.
3. Learn to let go
If you are in a business that revolves around selling your time and expertise, there’s a natural ceiling on how much work you can do. There are only 24 hours in a day, and working on all of them isn’t a long term business strategy. So be ruthless and look through your workload. Hire people to help – whether experts such as an accountant to look after your book-keeping or someone to assist with admin, they will free you up to focus on what clients are actually paying you for. And you’ll (hopefully) get your evenings back too.
4. Keep doing new stuff
I know a lot of people that have built successful businesses, get to year six and decide on a complete change of tack, such as creating their own start-up. While I couldn’t do this myself, it shows the need to keep challenging yourself and doing new stuff. On a less dramatic note it could mean offering new services, taking on clients in a completely different sector or investing in new skills and qualifications. The world is changing fast and failing to change with it will not only leave you bored, but you’ll gradually lose clients as they move to businesses that offer new services that meet their new needs.
5. Build up an ecosystem
No business is an island, and you can’t survive on your own. As well as networking, make sure you plug into people with complementary skills who can help you, whether with advice, mentoring or just providing you with a sympathetic ear from time to time. I know I’d not have built my business without the support of a whole range of people, which is another reason to spend time networking in both the real and virtual worlds.
Don’t get me wrong, the last five years has been a lot of hard work, a few tantrums and occasional worries about where the next job would come from. However it has also been tremendous fun, bringing me into contact with a wide range of interesting, innovative and sometimes quirky people. I’ve learnt a lot, enjoyed being my own boss and been able to (sort of) balance work and life. Here’s to the next five years!
Commentators are full of predictions that software will eat the world, with jobs, industries and traditional means to doing things swept away by the rise of technology. From automated journalism to connected cars, the claim is that we’re undergoing a transformation in how we work, live and play.
Software is revolutionising the world around us, but I’d contend that there’s a much more disruptive factor impacting our lives – the smartphone. It essentially provides an always-on, easy to use, ubiquitous interface with all of the software around us. Without it we wouldn’t be able to access the power of technology. So, rather than software eating the world, I’d pinpoint 9 ways that smartphones are making a meal of it:
Smartphones have the ability to monitor our vital signs and transmit information to doctors and medical staff in real-time. Whether it is using in-built or external, Bluetooth equipped sensors, smartphones will disrupt the health industry. Apple’s new focus on building a health ecosystem is just part of this trend, which can either be seen as a force for good or as allowing intrusive snooping on our most private moments. On the plus side patients can be monitored remotely, allowing them to remain at home rather than going into hospital for certain conditions, but confidentiality of data remains a worry. What if your insurance company could access your health data and amend your premiums accordingly?
2. Taxis and transport
Companies such as Uber and Lyft are radically changing the taxi market by removing the overhead (justified or otherwise) of traditional operators. Anyone can become a taxi driver – all they need is a car and a smartphone (which can also serve as your GPS, so you don’t need the Knowledge to direct you to the right place). This does raise potential issues about safety, vetting and insurance, hence the bitter battles being fought between traditional cab drivers and the new upstarts.
At no point in human history has so much data been available about individuals. The combination of ‘free’ services such as Google and Facebook that hoover up our personal information and preferences, with the geolocation data from a smartphone mean that companies have the ability to understand more about their consumers than ever before. The challenge for marketers is twofold – they need to ensure that they have real, informed consent from consumers when handling their private data, but at the same time have to evolve the skills to sift through this big data to deliver personalised marketing that drives engagement. The traditional model of campaigns that take months to plan and implement is rapidly going out of the window – if marketers can’t adapt they risk being sidelined by ever cleverer algorithms.
There is something impressive about a pile of cash – even if it is just one pence pieces. But carrying it around is another story. Replacing pounds and pence with the ability to tap to pay even the smallest amount with your phone promises to turn us into a cashless society. And it also removes the need for a wallet full of credit, debit or loyalty cards. All you’ll need to do is select how you want to pay on your phone and the software will handle the transfer. Could we see traditional banks and financial services companies replaced by Apple Money – or even currencies swept aside by electronic dosh? It is certainly possible, hence Apple’s move into the sector with the iPhone 6.
It may be difficult to remember, but when they began, mobile phones were for making phone calls or sending text messages (and playing Snake if you had a Nokia). Now the number of calls made and received is a fraction of before, as people move to messaging, email and free voice over IP services such as Skype. Many of us already pay more for our smartphone data plans than for calls and texts – meaning that mobile phone (and landline) operators will need to evolve new services if they are to be part of the smartphone future.
Growing up in an analogue world, toys and games were very straightforward. Now traditional toys are evolving to embrace both full on mobile gaming (think Angry Birds) and half way houses where the physical meets the virtual. Software such as Skylanders combines playing pieces containing electronic chips with fully fledged games to give a radically new experience. And this is just the beginning. As immersive technologies such as Google Glass and Oculus Rift gain traction we’ll find it difficult to tell reality and gaming apart. How long before people embed chips in themselves to become part of the latest smartphone game?
Buying power is a necessary evil – and the battery life of smartphones does mean we’ll always need electricity to recharge them. Mobile devices, combined with sensors and the Internet of Things provide the ability to monitor and adjust how we use power. From turning smart thermostats up or down, to only switching on lights when the smartphone user is in the vicinity, they can change energy use. Taken a step further, consumers could cut out the energy company and use their smartphone to buy power directly from smaller producers, adding flexibility and potentially bringing down prices.
The problem with insurance premiums is that they are based on averages, rather than knowledge of your individual circumstances. The data within a smartphone, either directly monitoring your movements, or linked to a sensor in your car, provides a deeper context around your behaviour and habits. Used properly this can help better judge the risks of insuring individuals – but again used incorrectly it will cause a privacy backlash.
9. Pub quizzes
As a Trivial Pursuit expert (and part of the reigning village quiz team champions) there’s nothing I like better than the chance to show off my knowledge. But how can pub quizzes survive in an era when Wikipedia can be accessed from your smartphone in milliseconds? Short of holding quizzes in exam conditions, with no toilet breaks where people can sneak off to check answers on the internet, cheating is going to become rife, making my carefully assembled general knowledge useless.
Research shows that the majority of us access the internet more through mobile devices than traditional PCs. And 20 per cent of young American adults admit to using their smartphones during sex. We look at our phones constantly, panic if they are out of sight for a minute and feel bereaved if they are lost or stolen. If it is true that software is eating the world, the smartphone is the knife, fork and plate responsible for the repast.
It seems like 1994 was a busy year – not only did it see the first ecommerce transaction (a foolish purchase of an overpriced and overrated Sting album), but also the launch of the very first smartphone. And interestingly it wasn’t produced by a traditional handset vendor, but created by IBM, thus adding to the long list of inventions, such as the PC, that it pioneered but then failed to commercialise.
The oddly named Simon went on sale to the US public on 16 August 1994, and had a calendar, could take notes and send emails and messages as well as make and receive calls. Aimed at the busy executive it could be linked to a fax machine in order to handle all your communication needs. However it failed to take off, only selling 50,000 units. As curator of the Science Museum’s Information Age gallery, Charlotte Connelly, drily puts its “It only had an hour’s battery, it was $899 and there was no mobile internet at the time. So it wasn’t very successful.” Personally I’m not convinced the name helped either – “Sent from my Simon” doesn’t have the same kudos as “Sent from my iPhone” at the bottom of an email.
We’re now seeing mobile and ecommerce (as opposed to Sting and Simon) converging, and driving innovation in technology. As this nifty but messy Google Public Data graphic shows, the majority of us now use smartphones as our primary method of internet access, and, aside from reading this blog, watching cute kittens and moaning on Facebook, one of our primary occupations is buying stuff. According to Goldman Sachs, global mobile commerce will hit $638 billion by 2018 – the same amount spent via PCs in 2013. While the majority will be on tablets, smartphones are an integral part of the customer journey and will make up a direct $20-30 billion of the total.
The smartphone has changed how we interact, shop and spend our free time. We are no longer ever idle – why gaze into space at the bus stop and notice the world around you when you can play Candy Crush instead? In many ways mobile technology has outstripped our capacity to adapt, leaving humans scrambling to change their behaviour to fit in with their apps, rather than the other way around. 20 per cent of young American adults (and 10 per cent of the total population) use smartphones during sex, though mercifully the research doesn’t go into any more detail than that.
So, what does this mean for startups and marketers? The smartphone is essentially our most relied upon device, and the one we keep closest to us at all times. You can link it to sensors, watches and the world around us, through Bluetooth and technology such as beacons. It really does provide a window into our lives, which has both a positive and negative impact. Speaking personally spam text messages or calls annoy me more on my mobile than their equivalents on landline or email. It is a delicate balancing act, with the consequences for misjudging privacy or security potentially extremely damaging. But get it right with your app and you can generate big profits or deliver your message right to the heart of your target markets.
The last twenty years has seen the smartphone change the world – as well as the wider device market. It has shrunk from the 500g brick sized Simon to thinner, more pocket sized smartphones (though ironically the trend is now for larger and larger devices), with increased usability and a wider range of apps aimed at consumers as well as businesses. One thing hasn’t changed though – the Simon’s battery lasted an hour, and while I get a bit longer from my iPhone, it still can’t survive a busy day without needing a recharge……..
How do you persuade people to buy your product or service, particularly when there is an increasing number of demands on their time and wallets?
I’ve always been fascinated about how an understanding of human psychology can help marketers to change people’s behaviour. Whether it is nudging people to choose the ‘right’ option or appealing to the herd mind, there is a lot that marketers can learn from the social sciences.
One theorem that can help improve marketing is Maslow’s hierarchy of needs. Originally proposed by Abraham Maslow in 1943 it essentially ranks the varying needs of humans, from the basic to the most complex. The key point is that it is only when one level of requirements are met will humans then move onto the next one.
So at the bottom are physiological needs – breathing, food, water, sleep, excretion. Without these humans simply cannot function. So, if you are selling basic products, appeal to this need, but if what you offer is more complex or higher value, look further up the hierarchy.
Next is safety (security of body, employment, family, resources, health, property). We’ve all seen marketing/advertising campaigns that play to these needs, normally by warning of the dangers that a particular product or service guards against. Insurance is the perfect example.
The third layer of the hierarchy is love and belonging, covering friendship, family and sexual intimacy. This is where sex sells, and also products that deliver a sense of being part of a group. Remember the scene every week in Cheers, where Norm comes in and everyone greets him by name? That’s key to this layer. However too many brands attempt to generate a sense of belonging, but make it too corporate and intrusive, such as Starbucks’ attempt to call customers by their first name when they were buying their latte.
Above belonging is the esteem level (confidence, self-esteem, respect of others, achievement). All humans have a need to feel respected, and clever marketers exploit this by offering products that (they claim) will increase your confidence and earn the esteem of others. Buy our car/mobile phone/bank account and your world will be transformed.
So, what’s at the top of the pyramid? All the previous levels were seen by Maslow as deficiency needs and have to be not just met, but mastered, before humans can move onto self-actualisation. This is much more complex and varies from person to person, but is essentially about achieving your full potential. To do this they need accept themselves, happy in their judgement and have an efficient perception of reality.
On the face of it self-actualisers should be immune to marketing, as they can see through attempts to manipulate their thoughts or feelings. However those on the path to self-actualisation can be targeted with images that show successful people and intimate that they can only be achieved by buying particular products. Think American Express Black credit cards or most celebrity adverts – drink Nespresso and you can be George Clooney!
I’m not saying that the hierarchy of needs is the sole way of planning marketing campaigns or boosting sales. But understanding which level your product best appeals to is a good way of focusing your efforts and going beyond features to look at what the customer is looking for. And that can only lead to better targeted products that consumers actually want, after all.