NV Strategies

SMS Follows Twitter…All the Way to the Bank!

2020-09-20T21:19:00.002-07:00

Original Post on April 26th, 2010 by Darren Withers - mobileStorm.com

You Follow Me?

As a marketer and someone that tweets daily, I have completely adopted a conviction that Twitter is the most valuable piece of social media for companies that rely on offer-based marketing to entice customers to patron, especially when combined with the increasing power of Foursquare. I will follow this post with thoughts on LinkedIn and Facebook and their role in social media strategies. Before I go into my thoughts, I want to show that I’ve done the research. Layered on top of this research is a daily obsession for engaging in social media on behalf of myself as well as B2B and B2C businesses in Las Vegas.

Twitter Food…for Thought

Here’s the real meat and the foundation for everything to follow in this post…

The RJMetrics site gives a ton of data on 2009 usage of Twitter:

Twitter ended 2009 with just over 75 million user accounts
The monthly rate of new user accounts peaked in July 2009 and is currently around 6.2 million new accounts per month (or 2-3 per second); this is about 20% below July’s peak rate
A large percentage of Twitter accounts are inactive, with about 25% of accounts having no followers and about 40% of accounts having never sent a single Tweet
About 80% of all Twitter users have tweeted fewer than ten times
Only about 17% of registered Twitter accounts sent a Tweet in December 2009, an all-time-low
Despite these facts, Twitter users are becoming more engaged over time when we control for sample age

Even more recently,The Huffington Post revealed current Twitter facts and figures:

Twitter now has 105,779,710 registered users
New users are signing up at the rate of 300,000 per day
180 million unique visitors come to the site every month
75% of Twitter traffic comes from outside Twitter.com (i.e. via third party applications)
Twitter gets a total of 3 billion requests a day via its API
Twitter users are, in total, tweeting an average of 55 million tweets a day
Twitter’s search engine receives around 600 million search queries per day
Of Twitter’s active users, 37 percent use their phone to tweet
Over half of all tweets (60 percent) come from third party applications
Twitter itself has grown: in the past year alone, it has grown from 25 to 175 employees

Now that you have some real info on Twitter behavior, let’s move on to how Twitter and SMS can work together to apply accountability and tracking to your Twitter campaigns…

SMS Marketing and Its Place in Social Media Marketing

Microblogging (fancy word for Tweeting) via Twitter is training 17,982,550 (based on the stats above this is the amount of Twitter users that are actively Tweeting) to send and receive 140-character messages. A language of hash tags, short-hand and abbreviations have developed an online culture of people that feel a connection to others that can comprehend and respond. This effect has snowballed as desktop applications like TweetDeck and HootSuite and mobile applications like UberTwitter make it possible for people to interact with Twitter non-stop and in a way that works for them. This has set the stage for a Twitter revolution for businesses that can grasp the way this social media world works.

Twitter seems to be the place where offers are likely to be accepted by users and not seen as an intrusion. There is a method to the madness. Twitter etiquette and the attitudes of the followers your business has should guide what you put out there in your tweets. Twitter users, as a whole, have been receptive to self-promotional messaging, but businesses on Twitter have been successful deploying offers by first building a positive reputation without hard selling. To put this into human terms, if I were to do nothing but talk about my work and sell people all day, no one would ever want to be around me…I’ve been successful in my profession by having the ability to connect with people on more than just what I do for a living. Twitter personas are the same. Having a genuine interest in what you’ve built a career on and sharing that with others that have a similar sense of passion is what inspires people to listen to what you have to say. Twitter is about having discussions with like-minded people. Deploying offers seems to work best on Twitter when they are tied to information and topics relevant to your group of followers; essentially your “offers” become a solution to a problem you’ve identified and discussed on your Twitter page.

Don’t take my word for any of this, take a look at these recent stats on the average Twitter user on Ask Aaron Lee.

Also, if you need a refresher on how Twitter differs from SMS, please read Marketing Showdown: Twitter vs. SMS on the mobileStorm Digital Marketing Blog. It takes a good look at the differences between Twitter and SMS.

Twitter is Only Part of the Equation

With all that Twitter can do, it can’t target those with timed accuracy based on a set of data points that you’ve collected. Twitter can be a great place to create brand fans, introduce the masses to your business and test offers with an engaged audience. Instead of just deploying offers and seeing what sticks, SMS will complete the trek from “Twitter follower” to “engaged customer.” Deploy offers with a text-in call-to-action. Tweet your offer and ask those that are interested to text a relevant keyword to a short-code to redeem a mobile coupon which can then be taken to a brick and mortar location. This will allow you to farm your Twitter followers and begin to collect real data on them. Also, there is a chance that customer was interested in your Twitter offer, but was not ready to take advantage of it at that exact time. By asking them to text-in, it’s a “soft-take” that the prospect can commit to right away. Think of it as social media qualification. Now they have taken 2 steps toward becoming a customer:

Becoming a follower on Twitter
Texting in to receive offers

On top of self-qualifying, your followers have told you what they are interested in by responding to a targeted offer. They are a “hot prospect” and you need to react quickly to capitalize on that. If you think about the 37% (and growing…) of active users that access Twitter via their mobile device, you can be pretty sure that you have an ideal situation to drive a real sale directly into your place of business. You can now begin to build data on this potential customer and influence their behavior in real time by delivering them a mobile coupon to their cell phone wherever they are. Should they not redeem the offer they texted-in to receive immediately, you can send them a more aggressive offer through SMS that will help close that gap and turn that person into a loyal and valuable customer.

Not only have you gained a new customer, but you’ve collected three very valuable data points almost instantly:

This customer is a Twitter follower and probably a loyal brand fan
This customer is interested in [insert whatever they ended up purchasing with the help of the coupon served via SMS]
The customer’s mobile phone number and permission to market to them

SMS Marketing Responsibility

Success will be partially predicated on communicating to your Twitter followers specific standards put in place by the Mobile Marketing Association (MMA). You will want to Tweet regularly the specifics of redeeming text offers and refer to your privacy policy. This will help your followers understand that you are going to be responsible with your mobile marketing program and warn them of any charges regarding receiving text messages. This practice will set up your followers with a sense of trust with giving you their information. In return you will gain trust and the ability to speak with that customer in the manner being proposed here.

With all that you’ve now been informed of, you can apply more metrics to your Twitter program. If you are a social media manager in your organization, you can make an argument for implementing mobile campaigns in this manner. The value of your current program is likely judged on how many offers are redeemed at the point of sale with an offer code. Now you can apply building a database of “hot prospects” to your list of achievements with a higher likelihood of capturing those customers in the future. If you are a social media agency, now you have another method of receiving bonuses for performance. If you are a business owner who doesn’t necessarily understand how Twitter can benefit your business, I’m not going to lie…there is some work involved, but SMS is the final piece of driving your followers back to your place of business.

Final Thoughts

If you are engaged in social media marketing and not making an attempt to drive your followers to subscribe to receive offers through SMS or email, you are missing a huge opportunity to build ROI into your social media marketing program. There are a percentage of your Twitter followers that will want to receive offers for your product or service. I recommend deploying offers through Twitter in one of three ways:

Randomly deploy offers on Twitter and track redemptions at Point of Sale
Deploy offers that require the follower to give you their email address and name
Deploy offers that require the follower to text in to receive a mobile coupon

Here’s a good rule of thumb for developing a program. Develop 10 offers that cannot be received by any other channel for Twitter followers. Sort them according to value from highest value to lowest. Take the top 3 offers and only make them available by texting in. Take the next 3 offers and only make them available by giving their name and email address. Take the bottom 4 offers and deploy them as general Twitter offers that can be redeemed at the Point of Sale by mentioning an offer code or the offer itself. This strategy will give your Twitter followers options while maintaining the most value in being a follower. You can begin to funnel your followers into a controlled marketing database that will drive real sales and real ROI for your social media efforts.

Business Development Series: Never Have to Look For a Job

2011-04-23T08:49:00.000-07:00

Marketing, Money and More (Issue 15)

Take this Job and...

As I've been posting my thoughts on business development, sales and marketing, I've been thinking on how what I'm posting can apply to anyone and everyone. Really, adding sales and marketing to your professional bag of tricks makes you more "marketable" in your career. I think back to every office manager I worked with. Seemingly, if that person didn't have an "above and beyond" work ethic, that position was not hard to replace, but if that person was responsible for referring in $20,000 worth of business every year, then they are truly irreplaceable or at least much more costly to replace. See what I am getting at... As I write this post, the unemployment rate in the US is holding steady at 9.3% (Closer to 14% in Nevada where I live; click here to see your state). I believe I can help those in the job market looking for a career opportunity, fresh out of college or a seasoned veteran with what I am about to say. In retrospect, I've spoken to many people recently who, years ago, would fight me on joining associations, keeping a growing list of contacts and engaging in social/professional networking (online & offline). When the economy was booming and businesses were in short supply of workers, it was OK to be a paycheck player and fly through your work unnoticed by your peers. Today is the polar opposite with employers looking for team members that can provide value well beyond their job description....

You Don't Need It Til You Need It

Waiting until you are out of work or in a position to look for another opportunity to build up your social media persona, get involved in associations, start volunteering with community organizations and networking in the real world is a hazardous way to manage your career. This philosophy can be compared to waiting til you've acquired diabetes to take control of your diet and exercise. The point is if you are in your comfort zone in your current professional role and don't see the need for any of what was just mentioned, well, you are wrong. I'm going to stress how your value to your company goes beyond how well you do the tasks required of you in your position. The first step is understanding your value to your employer. Are you easily replaced? Do you bring more value to your employer than just the responsibilities outlined in your job description? Do you bring unique skills or expertise to the table? Are you considered valuable by your industry peers? The first step is understanding your perceived value right now.

Professional Branding

nowing the answer to these questions is the key to beginning a process of building a professional persona. This is your brand for your career. This is something that needs to be managed and groomed to give you the most benefit... Those benefits can be anything from desired salary, to job title, to just having the creative freedom in your career to really do what you love and have others pay you well for it. The main elements of your professional persona (at least from my point of view) are:

Internal/Employee Reputation
Industry Professional Reputation
Industry Social Reputation

We all have a reputation.... Ask your boss, your peers and people in your industry what they think of you professionally and socially (or maybe have someone else do this). I am willing to bet, if they are truthful, that you hear some pretty interesting opinions. The worst opinion is for them to not have one. You can control this and here's how. One Part Social, Two Parts Professional There are some out there that put a very solid wall between their work life and their social life. There is good reason for some, but this can be a detriment to your career. People help the people they like. They like the people that socialize with them. This can be your boss, your co-worker, an investor, an industry thought leader or whoever. If you are not open to friendships with your professional contacts, then you can't expect friendly help from them. I'm going to explain the path I chose and I what I do that ensures I will never have to be a piece of paper in a stack of resumes. In 2007, I created my online persona. I wanted to own the search for "Darren Withers" on Google. It took time, I won't lie, but the end result is something to be proud of. I spent two weeks on my couch in December 2006. I didn't shave or do much else. I spent hours inputting information into every relevant social media site I could. I drafted a boiler plate for all the "about me" sections, updated my professional skills, researched and began to Search Engine Optimize myself. The sites I started with were:

I began to link the different profiles together to make sure there was only good information that I wanted out there. Once this process was completed, within a few weeks I was very happy with the search term results for "Darren Withers." I had taken control of what others would see if they were to research who I was. As time went on, I added to my online activities. I also launched this blog in 2007. I was aiming to become a thought-leader as I moved toward launching my own consulting business. I won't go through too much about this blog since you must be here reading this post, so you can see how long it's been up. I write about things relevant to the marketing industry but I do add a bit of my own personality by sharing some personal stories as well. I feel like someone reading all of my posts might not just get some value out of it, but might even be able to connect with me as a person. Taking control of your online persona is the first step to building your network database. This is the step that will make you look that much better to employers as they see that you are utilizing social channels that could ultimately help them and their business. Recognizing the tools that you have available to you and how they can be helpful in driving up your value to a company is critical to achieving your career goals. I'll follow up this post with more on social networking and then what to do with your database of contacts. Please feel free to jump back to the first of the Business Development Series: Where the Network Begins. It's a pretty good how-to on networking at events and how to be the most effective. Make sure you online persona is in place before networking out in the real world. The post is dedicated to someone I'm trying to help get their career shoes on. "Let's blow it up!"

The Value of Time

2011-04-03T14:07:00.000-07:00

Marketing, Money and More (Issue 14)

Time

I'm kind of a geek at heart. I watch more Discovery Channel programming than "normal" shows. One thing that always fascinates me is the concept of "time.". Time is the 4th dimension. If you believe in the concept of String Theory, then you know that we operate in an 11 dimension universe in a vast multiverse of universes. Before I go into a mind-blowing rant, I'm going to explain (or at least try to explain) my views on time. Time as it stands today is experienced by each person differently. In moments of high-stress where your adrenaline is pumping hard, your perception of time is changed allowing your brain to process more information.

Experiments have been done showing this is true. A display on a perceptual chronometer was used to flash numbers on a screen that in normal circumstances could not be read by a person. When time is slowed or our ability to take in more visual information per second is increased, the numbers on the screen are revealed. Check it out the video (Click Here).

It is also true that gravity and velocity affect time. Astronauts in outer space are experiencing time differently than those of us on earth. Although only milliseconds of a difference, astronauts on the International Space Station (ISS) actually age slower than we do on earth (.007 seconds slower to be exact).

What Is My Time Worth?

Now that I've gone over the science of time and how crazy time really is, we begin to think of our own time, who values it, how we value it and what our daily activities say about how we value our time. Having worked int he advertising industry, I used to sell "time." I know. How do you sell "time?" I had rate sheets for processes involved in the creative process. "Concepting" might be billed at a rate of $125 per hour while "copywriting" was billed at $90 per hour. If it takes 50 hours of billable "time" to create a sales kit, then I would factor in all of the different rates and hours and build an estimate. Is someone's time really worth $125, $200, $250 or even $1? Clients never felt like they were buying "time". They felt like they were buying an "end-product" which would ultimately be the sales kit.

My time is divided by my personal activities and my work time. Essentially I sold 40 hours of my weekly time to my employer, mobileStorm (and happily in case my CEO is reading this.) That time is worth more to mobileStorm than what it is worth to me, economically speaking. mobileStorm also invests in my knowledge of digital marketing, increasing the value of my time as it is used to consult for clients. The more my time can be sold for, the value of my time goes up.

Opportunity costs play a big role. I just recently moved. I wanted to save time and money. Unfortunately I couldn't save both. I chose to save money and move all of my belongings myself. I took my personal time and my work time to move all of my stuff. I've hired movers in the past to the tune of $100 per hour. If the time I'd save equals 20 hours by hiring movers for 5 hours, then I need to make $25 an hour or more for this to make sense financially. Fortunately for me, it did make financial sense to get movers. This was also great because moving is one of my top 3 most horrible things I can do next to cutting myself and getting cavities filled.

Older, Wiser and Less Time to Waste

As I've gotten older and more mature in my career, I've begun to value time much more highly. As I've worked in multiple roles from owning my own consulting business, to working for other people, I had my time valued anywhere from $10 per hour to $250 per hour. In my personal life, friends and family don't pay for my time (although sometimes I wish I could charge.) That time is beyond monetary value, but somewhere in my mind when I prioritize family and friends above work I must have made some calculation.

I have had people ask for free advice or a favor or to help a nonprofit. I rarely have turned down requests for such things and I have become known for being dependable and someone that can be counted on to help. My views are changing now and I have made a conscious effort to turn down more of these opportunities to give away my time. I believe my past generosity was necessary to prove myself, my willingness, my general work ethic and to just be a good friend and human being. In order for me to raise my value and the value of my time, I have to pull back on my inventory of hours and make sure that opportunities to sell my time are very carefully calculated.

Time to Change

Thinking like this can make you feel cold, heartless and make everything into a money comparison. I am not saying that you shouldn't visit your mom and dad for Christmas because your time is worth too much. I'm saying that being aware or what your time is currently valued at and what you would like to be paid for your time. Take the time to come up with a dollar value for what you would like to earn and apply that to the total hours you would be willing to commit to your professional activities. If your current earnings per hour worked are not inline with what you value your time at, then it is "time" to look at increasing your professional value. Take comparative salaries of others and see what those people have in terms of experience, schooling or abilities. The goal should be to acquire the skills and experience necessary to achieve your ideal hourly value. Obviously financial situations change and I think we have all taken less than would have liked to do a task or project because we needed the income. If you are in a stable position and you can inch up your professional hourly value year by year, then you can get closer and closer to having your time valued very highly by others.... earning more and having your priceless personal time to do what makes you happy.

Alternatively you could build your business on the ISS and charge more per Earth hour than any other business on the Planet! I invested time in sharing my thoughts in this blog and I hope to one day have it pay off in the form of a published book. We'll see as this is my testing ground. I'd love to hear some feedback on how you feel about your time.

Communicating Your Relationship

2010-12-01T20:34:00.001-08:00

Marketing, Money and More (Issue 13)

Communication Overload

I was recently inspired by my friends, colleagues and...shoot....even the girls I dated to write this one, so I hope it helps you empathize with others in this new age of communication. I thought about my last month of communicating with people. This morning I checked my Facebook and Twitter. Yay! I got 2 mentions on twitter, 50 club invites on Facebook and a few comments and posts from friends. Ooh. Three people liked my smart comment! I switched gears and jumped into Outlook. I had 20 messages waiting for me in my inbox. Got a text from my buddy who lives in the same condo development that I do. That exchange went two or three rounds at least. Then..Oops, I work from my home, so I had to jump on to AIM to have some email-related discussion with my friends at mobileStorm. I then took a look at Linkedin and I had a few requests to get connected and someone I was hoping would reach out, reached out. I jumped a little when my phone rang. Of course, it's mom. The only one that still leaves me voicemails. Get to that one later.

Point here is that 12 years ago I was lucky to get a page on my pager from friends and then I'd pull out my decoder to see what code meant what and then call someone back once I figured it out. NOW, I have what feels like 100 different ways to get a message to and from someone. This new buffet of communication methods has expanded my network by allowing me to keep tabs on more people from anywhere, but it also has shown me where I stand with those people. The channels I use now communicate something. The time I take to respond communicates something. Not doing anything communicates something. What am I communicating and do I even know am doing it? Calm down. Let's take this slow and work it out.

Where Do You Stand?

Let's take this personal, very personal. I am a single guy in Vegas. I date... A lot. It's very funny how you can tell where you stand with the people you are dating...or trying to date. I always call first to ask someone out or I do it in person. I don't always get the same in return. I'll get the number one night and call a few nights later and leave a voicemail. A few minutes later I get a text response, "Hey. Glad you called. Heading to a fun event later. Let me know what you are up to." I called and I got a text back. This does not look promising. Essentially, I was downgraded. I value a phone call more highly than a text. This girl likely calls people she feels are important, but I do not meet that criteria. We'll see how this one goes...

I have moved up the ladder from a Facebook friend, to a text buddy, to a phone call and ultimately to a dating situation. You can tell by the progression that my personal value rose with this person to a level where she was able to give up a piece of her time to communicate on the phone and ultimately in person. These are usually the best situations and when response times are fast, it's a good sign. It's also really telling when the other person uses multiple communications throughout the day.

I've also been downgraded. Recently I watched a dating situation move from in-person to phone calls, to text messages, to email and then ultimately it disappeared. Not only did the communication method dip in "personal value," but I also noticed the response time get longer and longer and longer when I would reach out. The inevitable "beginning of the end."

This goes beyond dating. I have had business situations as well where the communications heat up and fizzle out. What's appropriate for personal is not always the same for business. Knowing how and when to use what channel will give you the best outcome in business or your personal life. 90% of communication is non-verbal and words are just words so pay attention.

Matching the Channel to the Message

Here are the channels I feel that I have available to me throughout my day in order of the highest personal value to lowest personal value to me:

In-Person Meeting
Phone Call
Text Message
IM
Email
Facebook
Twitter

(I didn't leave out direct mail, but I really don't think it counts for day to day.)

Meetings are the top dog. It is the highest level of respect and engagement you can have with another human being. Business or personal, nothing says you are important more than someone taking the time to meet up. It is getting more and more rare these days, but if you want to impress someone, get dressed and meet somewhere for more than 30 minutes.

Phone calls are the next best thing. I do most of my work over the phone. It's a bit harder to gauge reactions because you can't see their facial expressions and body language, but if you are good, you can do anything in the business world. I always tell people I can't give them everything over the phone because then why would you want to hang out with me. I try to move people I want to value me up the ladder by make each communication experience better than the previous and hinting at how much better the next step up will be.

Text messages are great for quick informative communications, like leaving a digital post-it note on the fridge. You can get out a quick communication, but choose words carefully and do your best to leave nothing to interpretation...not an easy task for 160 characters. Arguments and bad news are not great in a text message and will likely lead to misunderstandings, plus they are in print. No one can forget a text message with hateful content when they can look at it repeatedly.

IM is great for having conversations when sitting at your computer and banter, but again it is removed from the personal nature of speech. This can give people a lot of time to think out their comments and it's hard to be "in the moment".

Email is great for keeping records and sending private messages, but again we have some of the same pitfalls of text messaging. I feel that email is easy to hide behind, but it is wise to keep bad news or highly personal and sensitive messages out of email.

Facbook can be fun for flirting and keeping up with friends. It can also be a way for people to make judgment on the lifestyle you put up there. Pictures tend to be fun and don't show you at home reading a book. It's a place where jealous boyfriends can make assumptions and arguments can be taken public. Being someone's Facebook friend is equivalent to having class with someone in my book. People celebritize themselves and let everyone know every little thing they are doing (Self-admittedly, I am guilty.)

Twitter can be good for promoting your professional knowledge and philosophies, but it is not the best place to try to air your dirty laundry. This is where people go to share information and insight. I don't feel very dynamically connected to my Twitter followers unless I know them in other capacities.

Communications Etiquette

I feel like there is little education out there for people. These channels just sort of snuck up society and I'm not sure if anyone consciously realizes that an etiquette has developed for people that are good communicators. I get extremely offended when etiquette is consistently tossed aside and responses to my communications come through "lower value channels." This practice makes others feel devalued.

Try to return the communication using the same channel as your received the original message in. If someone calls you, call them back. If someone tags you on Facebook, tag them back. If someone emails you, reply to them with an email. This is the best way to avoid conflict and maintain the level of your relationship with that person. It's a sign of respect to reciprocate an exchange.

Understand what is appropriate. I think society would gasp if police officers started texting loved ones of deceased family members and doctors gave bad news over Facebook. Although extreme examples, understand that the more sensitive the content of your message, the higher up the communication "value chain" you should go. It shows poor character to deliver bad news via email and text. It is a slap in the face to the recipient and it will likely escalate matters.

Say What You Mean Because You Already Said It

Use the appropriate channel for what you want to say. To say to someone, "I really want to see you today, let's get together." via text message, then be unresponsive for the rest of the day is a massive contradiction. The intent may have been positive, but all this did was frustrate the person receiving the message. Not only was the communication impersonal due to the fact that if someone really wants to see you, they would be excited to pick up the phone, but being inaccessible from that point forward is a very clear, "I really didn't want to see you today." Remember, everyone knows you have a Facebook, Twitter, cell phone, email, fax, IM and various other ways of getting in touch. It is nearly impossible for anyone to believe that someone can be "inaccessible" or not get 4 out of 5 communications. Being honest is the key in this new age of communications.

How awkward would it be to find out the sex of your unborn child via a Twitter DM. These channels and message values do not match. I feel that often, bad news is give via the easiest channel like text or email. It's easy to hide behind text or email and carefully construct your sentences for the most impact. These are also the easiest to misinterpret. People add their own voice and tone in written word depending on their mood and impression of the sender. It is NEVER a good idea to send sensitive communications that will hurt or upset another person via text message or email. Over the phone or in person is the only way you will be able to react to facial cues, body language and inflections to properly manage emotional interactions.

The whole point of this is to be aware of what your channel selections communicate to those around you. Over time, people can get a sense of where they stand with you by the method you choose to communicate to them with. The old adage, "Actions speak louder than words." sums up this post perfectly. Be respectful and show the people you value you really do value them by giving them the best interaction. Reciprocate respectfully using the same channel as they used to reach out. I promise you if you call me, I will call you back. Just understand that you need to be direct and truthful about your relationship these days because its very likely you've already told other people how you feel about them...and you didn't even know it.

Business Development Series: Where the Network Begins

2010-07-06T22:27:00.000-07:00

Marketing, Money and More (Issue 12)

Forrest Gumped My Way to Success

If you were anything like me, a 22-year old kid fresh from college thinking those you would be working for had their stuff "together", the economy was only going to grow larger and being upwardly mobile was a right guaranteed by every person born in the US, then you also had a lot to learn about the way the world really works.

I opened up my career like any other middle-class male. I majored in
Communications (Advertising) and minored in Marketing at UNLV, pushing my way through the system with the help of financial aid. It was natural that I found my way to an ad agency to complete my internship before graduation. That experience led me to my first marketing job working for a local Las Vegas Charity, Opportunity Village. That was where I shed my ideologies about the way things work (according to the classroom) and began realizing the vast network of relationships that existed in Las Vegas in 2003. As a part of my job role, I was responsible for 3rd party fundraising efforts and special events. Fortunately during that time, I was taken under the wing of a very well-respected public relations professional named George McCabe (currently the PR Director for B&P Advertising). George opened the door to media professionals in Las Vegas and with a respected charity behind me, I was in the best position to make really valuable connections.

I quickly realized that I stumbled onto a really great thing in my career which wouldn't be apparent to me until years later. Working for a non-profit is one the best ways to engage with politicals and decision-makers. To this day, I am recognized for having been a part of such a respected organization. When you are approaching a relationship with someone on behalf of a charity, it is likely that you will get a response and usually at a higher level than your position would justify in the for-profit world. This is great for building your reputation and hopefully you are working for a cause you believe in at the same time. Even after 7 years of not working there, I am still very active with Opportunity Village and it continues to open doors for me. I strongly recommend getting involved in the community.

It was during this part of my career that I decided to get out there and attend all the emerging social, professional and political gatherings I could get into. I was peaking at about 5 a week, promoting Opportunity Village and getting my name out there. I was starting to see patterns early on and over the years, I've developed a strong sense about how to gain the most value from networking....

Sales Locusts and the Events They Feed On

I was a little oblivious as a first-time sales person, constantly looking for opportunities to network and hand out that first business card that said I was a "somebody"...working for "somebody." I must have went to every networking event in Vegas. I'm not sure if I met new people but I sure did help out the bar tabs for the host venues. I'll tell you what...Vegas hosts the best networking events.... but I don't think I've ever done business with someone as s direct result of meeting them at a mixer, in-fact, I think most relationships that came from those experience brought more headache than help. I think this is common for most people. To this day I get chased by financial counselors. Thanks, but I can manage a zero balance on my own.

Chamber mixers, networking groups, socials, etc. have a cycle. If they are managed and launched well, you will see an A-List crowd for maybe 12 weeks. After that, the format gets old and the quality people stop coming. The percentages lean more to the side of "clueless" sales people that would shove a business card in your face well before ever thinking to ask where you are from. This common problem accelerates the exodus of all the value that is there for someone looking to truly build their network. I call these problems "sales locusts". They come in and devour all the value and leave nothing but themselves in their wake. Eventually they move on to the next hot spot and repeat the process.

You Never Get a Second Chance to Make a First Impression

But you do get a second chance to reinforce the business community's bad impression of you. How do you want to be known amongst your professional peers? Are you the sales locust mentioned above? Are you someone that has value in one form or another to people in your industry?

If you are reading this, then you are thinking about your place in the business community. People are people. Do you like someone who just talks about what they do and do nothing to find out who you are and what you are about? Most people don't like being sold, but they love being helped. There is a powerful concept - EMPATHY. It's a lot like the Golden Rule. Treat others as you'd like to be treated...

MMM Rules of Networking Engagement

I've been talking a lot here, but I wanted to demonstrate my thoughts on networking and what I found most valuable in my career path. I've developed hundreds of great relationships in business and many of them have turned to friendships. I have some rules to follow that will help even the least social person:

Never lead into a conversation with "So what do you do?" This can be compared with asking a girl if she's willing to go home with you on the first date. It won't end well most of the time. You've just given up your true motive and it's a red flag to executives that you are going to harass them.
Act as if no one in the room has a job, including you. If you can make it through a networking event or social gathering without talking about your job, then you are on a whole other plane of existence and probably a very interesting person. You will likely connect with people better and the relationship will get deeper than just surface-level.
Keep it in your pants. Don't whip out the business card at all if you can help it. Lead someone into a situation where they feel they should ask for it. If you've ever gone to a networking event and emptied your pockets, it's hard to remember whose business card is whose. I always remember the ones I asked for and really wanted. I even put them in a different spot in my wallet.
Tactfully prompt someone to ask about your job if necessary. So the whole point of networking is to build up your pipeline and get some business in the future. If you follow the rules above, then you will have better relationships, BUT there's always that, "I just saw the president of X company and I've been chasing them for 2 years and I need an in." If you feel you need to get a business card in someone's hand, there is a way to do this without shoving it in your prospect's face. Lead the conversation in that direction and leave an open opportunity for your prospect to ask about your job. (Example: "Have you ever been to Boston? They have the best thing on the planet. It's a toasted and buttered hot dog bun stuffed with butter-soaked lobster. I was just there on business and got sidetracked...." This leaves the opportunity for them to ask why you were in Boston and what you do which takes us right in to rule 4...
Lead the conversation. You want each and every person that engages with you in a conversation to walk away with a positive impression and some value they didn't have before meeting you. If the conversation starts out with, "I hate events like this." it's your job to move the conversation quickly to the positive..."Me too, but I'm trying to oust the Mayor of this place on Foursquare, I'll find you Joe M!" In one sentence, I probably turned the conversation to one of positivity and it's likely I'll end up educating my prospect on Foursquare and it's awesome capabilities which positions me as an intelligent sound board and creates value for the interaction.
Follow networking etiquette. Unless you are really deep in conversation, please recognize what you and your conversation partner are there for in the first place...to network. If you are not picking up on the signs to end the conversation, you are going to make it awkward for the other person to leave the conversation. I've heard it come to, "Hey, well it was nice talking to you, but I really want to work the room a little." Try to keep the first conversation to 5 minutes, 10 if it's going really well.
Know when to leave. If your prospect turns and talks to another group, don't stand behind them and wait. That's kind of strange and that's what they'll remember you for. Say, "Excuse me, I'm going to find the bathroom." and part with a handshake. This is the best position you can gain if the conversation needed to end. If the conversation really isn't going anywhere, but this is a good prospect you don't want to insult and you just need to break free, politely give that person an excuse. Try, "Hey, I'm going to go find my friend, he's the VP of Marketing for this place. Find me later and I'll make an introduction." It's legit and you've offered up a future value if they are interested.
Leave an invitation to reconnect. As you wrap your conversation up, please give them a way to reach you or find you. Do this without shoving them your card unless they ask for it. Let them know if you plan on attending the next event or ask them what their next social night will be. I'll cover social media follow-up in the next post, so stay tuned.

The next time you are at an event, you hopefully are not littering with your business cards and are engaging in a lot of valuable 5 minute conversations. Don't judge success by how many business cards you collected. Judge by how many people asked you for yours. If you can change your thinking, you may have less prospects, but you'll have better ones and fewer to manage.

Business Development Series: Foundation for Successful Business Development

2010-06-27T19:21:00.000-07:00

Marketing, Money and More (Issue 11)

The Beginning of a New Series

My goal is to eventually become a voice amongst business development professionals. I think about who I would take advice from and I know that I have to do a few things to earn that right:

Provide a unique insight into practices that will without a doubt produce real results for sales, marketing and business development professionals
Have a track record for success in my own right that is both aspirational and reproduce-able across any b2b industry
Show my work and provide "real world" cases of success and implementation of key strategies

In this series I will go into detail in identifying the key elements of a great business development program and give instruction on how to launch and maintain specific tactics. Communication channels, resources, trends, activities and the underlying process that leads to success will be comprehensively demonstrated with a realistic approach to developing clients. All of what I am teaching is fully possible for a one-man-show, but as with anything, a team effort will produce exponential returns.

Consider this the overview and all of the following blog posts in this series will dive into great detail on foundational business development practices and explain each channel in this imaginary tool belt.

The Power Position

Who are you? I like to pull in a great analogy here. I come from a family of car sales people as far back as my grandfather. In a great economy on a car lot that has a great marketing program and consistent customer traffic, even the worst sales person can make a decent living. They become more of a cog in the machine and roll through the motions set by management. As the economy took a dive and the opportunity for selling a car decreased, these sales people were the first to go. They couldn't develop their own clients and get repeat customers. They were short-sighted in their role and believed it was their employer's job to get people to the car lot and maintain the relationship with their customers. The sales people that maintained personal relationships with their clients and generated their own leads could still maintain enough sales monthly to make or exceed quotas and they thrive even in today's economy.

There is power in becoming self-reliant. Once you become a self-sufficient sales person, you begin to become a powerful business developer. These people have the most value to companies and can write their own ticket. More often than not, a business developer is constantly in demand and rarely has to look for employment. They are usually changing companies because a better offer was made to acquire them. These people are self-promoters and highly social. Typically they put their career ahead of almost everything and don't need to look outwardly for motivation to become better at their job.

Again I pose the question, "Who are you?" I see myself as a business developer who has little reliance on employers to drive opportunities for success. If you are or aspire to be in a similar position, then I hope you continue to read these posts and hone your skills as a powerful force in your company.

What is Your Value?

In all of my years in business development, I've learned that one thing remains overwhelmingly consistent...VALUE in the relationship. You must constantly prove your value to the company you work for. Value is the basis for all relationships. If there is no value in a relationship for you, then it is likely that you will leave that relationship. This is true of personal relationships, business relationships and relationships with companies. Providing value in some form is the most important element in developing a client relationship.

Both sales and marketing must reinforce and communicate to customers and prospects the value of a relationship with your company. Consistency in communication is a vital ingredient in successfully engaging new customers. Every communication must provide additional value at each stage in the relationship. That value must be delivered even after the close and continually reinforced by front line staff, sales, billing, support and any other department that touches a customer. This value will then be communicated in the form of referrals to potential new customers for your business. The relationships between sales, marketing and operations are all essential to acquiring and keeping customers. Depending on the size of your business, these functions could be consolidated or be very separate departments with a hierarchy of staff for each.

Tools of the Trade

Whatever tools you use, make sure that each is consistent with all of your communications with customers and prospects. Social media is considered new and is a great tool for reaching top business professionals in key industries that could be prospects for your business. I believe it is being used incorrectly by even the most recognized and progressive brands. Social media is a great opportunity to stay in front of influencers and decision-makers consistently, but it is also a tool that can be used incorrectly to destroy opportunities to develop future business. More familiar channels such as telemarketing, direct sales, direct mail, trade shows, networking events, email and online are all great, but used without clear direction and inconsistently can do more harm than good and actually damage your program and tarnish your reputation.

As my career has progressed, my focus today is with mobile and email. These are great channels for maintaining relationships with customers, especially if your business requires ongoing knowledge of your service or product by your customer base. Maintaining long-term interest by subscribers can be difficult if you struggle to find content. As deliverability becomes more and more difficult to maintain, we are forced into sending to our email database on a regular and consistent basis. Getting ahead of your deployment schedule can be time consuming, but the long-term payoff is well worth the effort. mobileStorm's Digital Marketing Blog is a great resource for developing your email marketing expertise.

Trade shows can be costly, but they can be effective in driving valuable leads and ultimately business. Standing out at these shows requires creativity, energetic sales reps, gimmicks, materials, expensive booths, planning, travel and other things that cost time and money. Effectively driving leads through trade shows requires planning, budgets and time.

For many companies, the tactics above may be luxuries that cannot be afforded. Partnerships with vendors, bypassing the need for booth space and making the most of resources are ways to decrease the expense and increase sales efficiencies. Finding a program that works financially and within the bandwidth of current staff and resources is a focus that I have incredible expertise. Leveraging relationships and planning can give prospects the impression that your company spends large amounts of money on sales and marketing when in fact your company is very cost-effective in its efforts.

Moving Ahead

As we move ahead, I want you to make your own decisions. Take a look at my background on LinkedIn. Follow me on Twitter. Even this blog is meant to drive lead generation. If you feel that I am practicing what I preach, then participate with me. Leave comments, ask questions and reach out. I am happy to take criticism, listen and share ideas. Stay tuned for the next post.

Taking Casinos by Storm in 2010

2009-11-25T01:24:00.001-08:00

Marketing, Money and More (Issue 10)

Revelation

I had a revelation that I thought my readers would want to hear. As the newest part of the mobileStorm team, I need to know what it is that I am selling. Up until recently, company efforts centered a ton of focus around the SMS platform. I think that is due to the overwhelming response by marketers to step into text messaging in 2010. In 3, 5 or even 10 years, SMS could die and another channel will take its place as the primary channel for mobile devices. I think we are just misnaming what it is that marketers are trying to grasp. It is something with longevity and based on a relationship between man and his ability to interface with the rest of the world from anywhere. The “cell phone” represents a gateway to what all of us crave…interaction with other people, access to knowledge, entertainment, help, etc.

A Pair of Golden Handcuffs

There is a relationship between this device and the person using it. The vast majority of us cannot live without our cell phones and that addiction is very deep with those of us that have smart phones. Focusing on this relationship between a device that provides this gateway and the individual is what was just recently discussed at a panel discussion on social media at the Global Gaming Expo (G2E.) Troy Simpson, Director of Innovation for Barona Casino spoke on this very subject and called this relationship “a pair of golden handcuffs”. He said more money will be spent on harnessing the power of this relationship between people and their “devices”.

With all this said, I will be out there positioning mobileStorm as the partner that can help casinos and other relevant companies master all of the facets of the this relationship and provide a way for them to intervene and participate in a meaningful way. This presentation of mobileStorm’s role with respect to clients reaching their customers provides a “timeless” ability in specializing in connectivity with each client's respective target audience in a truly one-to-one way. For now we are focusing on SMS as the application by which mobileStorm can be a valued partner. With this thought process, voicemail and email become very relevant channels in this mastery. As more services and platforms are created and others go away, we will always be the experts in managing the relationship between people and their devices.

Palms Players Club SMS Campaign

Over 7 days mobileStorm teamed up with the Palms Casino Resort to demonstrate a wholeistic understanding of a relationship between a casino gamer and their mobile device. We demonstrated a campaign that uses the mobileStorm's SMS platform to manage this relationship in a beneficial way to a casino. This “test” was intended to drive players club sign-ups. The campaign ran live at G2E from November 13 thru November 20. Casino professionals from all over the US got to watch it unfold. The campaign featured the following elements at the Palms:

Free Standing Posters
Slot Bank End Caps
Elevator Posters
Television Screens near Club Palms and the Front Desk

The campaign was also implemented on 7 bus stop shelters at key locations on the Strip provided by Outdoor Promotions with two (2) :15 video animations running on 70” plasmas within 10 minutes of video content for maximum frequency. The centerpiece of the campaign was a 3D Screen provided by Magnetic 3D which had a special lens on a 42” plasma that merges 10 moving images simultaneously to create and unbelievable 3D effect without the need for special glasses. The 3D screens were placed in front of the valet entrance at the Palms to engage people walking into the property. Inserts (4” X 5”) were placed in cars at valet as well to catch those leaving the property.

The offer was high-value; a New Year's Eve weekend with Maroon 5. Once people have opted in to win the New Year's Eve package, they received a series of offers until they headed to Club Palms to sign up and redeem. The text offers deployed were progressively better and better over 72 hours. The strategy mimicked the excitement and anticipation of "Deal or No Deal". The offers were very aggressive in terms of attracting players and were tracked using unique keywords for each medium utilized in the campaign. The campaign ran from the Thursday prior to G2E (11/12) until the folloiwng Thursday (11/19) to give the test weekend traffic numbers.

mobileStorm managed the entire campaign including the production of animation through strategic partners (mobileStorm, Outdoor Promotions/Posterscope USA, Environmental Ink, etc.). All of this was FREE for this test except for the printing which Environmental Ink helped to control costs for those relevant items listed above. A cost per acquisition model will be derived from this campaign.

We are experts at delivering messaging to mobile devices and providers of the tools and knowledge to do so. This ideology gives mobileStorm “lasting power” and will position us to lead the industry well past the existence of SMS. If you would like to hear about the results or learn about an upcoming test campaign with an "unannounced" casino partner on the Las Vegas Strip, please feel free to shoot me an email....darren@mobilestorm.com or check out mobileStorm's Digital Marketing Blog.

The Death of the Mid-Size Agency and The Birth of Giants

2008-11-30T01:36:00.000-08:00

Marketing, Money and More (Issue 9) 11/30/08

The New Economy
Value is the name of the game in a recession. If a company cannot provide high value, then it will not survive through 2009. Our economy has been crippled to the point where even OPEC is vulnerable.

Jumping the Curve
Guy Kawasaki (managing director of Garage Technology Ventures, an early-stage venture capital firm and a columnist for Entrepreneur Magazine. Previously, he was an Apple Fellow at Apple Computer, Inc.) speaks of a concept of "jumping the curve."

The long and short of it is that companies often fall victim to success and don't invest in the next evolution of their industry. One example Guy uses is the business of keeping food cold. Originally people had to go up to high altitudes to get ice for storing food. Then factories began to produce ice and delivered it to customers. Finally we had the home refridgerator which could freeze ice, eliminating the need for delivery. No one company survived all three stages of this evolution. Prior businesses died out and a host of new businesses emerged at each stage of the evolution. The moral is that your business is relevant one day and can lose relevance if you don't pay attention.

The Death of the Mid-Size Agency
Evolution just got a helping hand from a poor economy. Mid-size branding firms/ad agencies (30 -100 employees) thrived in the booming economy. Now faced with reduced budgets and an economy in recession coupled with a boom in online and mobile communications and you get a recipe for big change in the industry.

Not only is there an increased focus on online, but there is a resurgence in popularity of grass-roots strategies. Traditional agencies are falling victim to a lack of preparation and vision. Big broadcast buys (an area where traditional firms earn big commissions) will be scarce for the mid-size agency in 2009. Any medium that cannot be held accountable for every dollar in terms of ROI will be highly scrutinized by clients and perhaps eliminated from the budget completely.

Agency "Best" Practices
In case you were not "in the know" on common agency billing practices, then let me shed some light on what additional fees can be in your billing without your knowledge:

Production Management Fee - Usually 10% - 25% mark-up on all items not handled in-house (i.e. printing, subcontractors, production, etc.)
Media Commission - As a standard, media outlets have offered agencies a 15% commission for purchasing media. As time goes on , these agency discounts or commissions have been given directly to businesses and are much more well-known than years past.

These practices are more about "hoping the client doesn't notice" than a justifiable accounting. I have witnessed a client pay an additional $12,000 because they allowed their agency to print a direct mail piece that cost $2,500 in creative fees to create. This was a $90,000 mailing with 45,000 pieces. Had the client known, they never would have agreed to the mark-up.

Those firms that highly specialized, adapted to new technology and stayed flexible with their fee structure will have the best chance for survival.

Tearing Down the Barriers to Online

2008-08-24T18:19:00.000-07:00

Marketing, Money and More (Issue 8) 8/24/08

Websites
There is a lot of "old school" mentality in terms of online. I have met very few small to medium-size business owners that are very active in generating leads online. Many business owners know they need a website, but they don't know what type of website, how much they should spend on their website, what type of coding will be used and is most beneficial, etc. There are a million questions when it comes to web and it is hard to write a check for something that you don't fully understand.

The first place to look is at your competition. What does there website do? How does it look? Is it easy to find on Google, Yahoo! and MSN with relevant searches? If your competition is doing well in capturing leads online, that may just mean that no one is challenging them. They may be doing their online marketing very poorly, but everone in their space is doing it worse.

This lack of competive force in many categories in terms of online marketing and Search Engine Marketing (SEM) is a great opportunity for many businesses.

Search Engines & SEO
Google is changing the way we find information. Google is built on one basic premise... getting us to build better, more relevant websites. Google's job is to match up information-seekers to information, not to control the flow of customers to marketing websites. With this in mind, the medium is defined. "Value" is what it is all about. Build an information-rich, website that provides loads of perceived value for your customers and Google will reward you greatly, organically.

Read a few articles on Search Engine Optimization (SEO) and search engines. There are more than you can ever possibly read, but they will open the online world up to you. Of those that search online, about 65% use Google, 22% use Yahoo! and 13% use MSN. Knowing this, you can see why so much emphasis is put on Google when we talk about Search Engine Marketing (SEM), Search Engine Optimization (SEO) and Pay-Per-Click (PPC). We play up to the 800 pound Gorilla, not the 100 pound Orangutan.

The Myth
SEO is a function of building a website correctly from the beginning. If a website is carefully planned and well executed, it can be the life blood of a business. Anyone that says, "I can guarantee you a top spot on Google." or, "We have great relationships with Google and Yahoo! which will help with your SEO." is full of it! These tactics are used on those that don't understand web and are misinformed on how search engines work.

If you ever see these claims, beware! These companies will sometimes mask Pay-Per-Click campaigns as Search Engine Optimization. The two are completely different. Orgnanic (being indexed highly by Google in relevant searches without paid placement) is much more valuable than paid placement which is based on a bid system. Only between .04% of people searching click thru paid search on Google Adwords. This may improve from the 0% you had before you started, but it is not true SEO and don't be fooled.

These are companies that likely employ dishonest practices such as link farming and masking keywords behind images. Here are some good questions to ask these companies:

How do you "guarantee" top placement and in what searches are we talking about (only so many searches are relevant to your business and there are services that can show search traffic for every key phrase typed into Google)?
What type of practices do you employee for SEO? Do you employ pay-per-click campaigns or do you concentrate on organic placement?
What are you quality control measures to ensure ethical practices to avoid "blacklisting" by Google and other search engines?
Can I get a list of references and see a few case studies?

These questions should communicate that you know your stuff, at least enough not to be taken in by the first shark you talk to. Look at all the things we asked for above. Write out your objectives for your website and ask the prospective company to address each of them. Give people a fair shake at convincing you, but at the end of the day, it is your decision.

Without going into a full dissertation on web design, there are standards that have been developed. Addressing meta tags, title tags, keyword density and more will give any website a good shot at being indexed highly with google. The big win is working with other sites that are relevant to the key terms you are optimizing for and getting them to link to your site without giving them anything in return (money or a reciprocal link). Google sees your site as relevant to a topic when other relevant sites link to yours. Working with seasoned web designers and marketing strategists will give you an edge over a competitor. If this edge means that hundreds more people searching for your product or service find you before your competition, then it will be worth it.

Standards & Practices
Just like reading from left to write is a standard for writing literature, having topside navigation is a standard for web. Adhereing to standards creates less confusion, frustration and clearly maps out the user experience leading them to what you ultimately want them to do. What is it you want them to do? Book a room, buy a toy, call, email, give you their information. Many sites have every option imagineable so that there is no clear direction when getting to the site. This is not done on purpose, but done out of fear. Decision-makers get so entrenched in not wanting to lose any client, that they dilute their ability to capture anyone in a decisive manner. The more vague and homogeneous the site, the less effective it will be in converting customers.

Do the homework, adhere to standards and create a clear path for a group of people you have the best shot at capturing and success will follow. Try to be everything to everyone that may happen upon your site and be burried with the rest.

CMS vs. Outsourcing
I've had some confusion with clients saying that they want to be able to make edits to their website once it is designed. This is called "Content Management." A site can be built with a Content Managment System (CMS) which gives the customer the ability to make edits to text and pictures in pre-determined areas of the site that need to be changed often. The problem lies in aesthetics. The CMS creates a challenge in terms of design. The CMS will lock the site into a framework that cannot be changed. The amount of text and size of images needs to be standardized and we lose the ability to be creative in these areas of the site.

The alternative is to have the web designer make all changes. This can be expensive if there are changes consistently. An emphasis on quality would dictate that changes are outsourced and an emphasis on budget would dictate the latter. It is really a compromise between the two. Content manage those areas that make sense and re-employ a web designer to make bigger changes.

Viral
I have heard more directors and vice presidents of marketeing say, "We need to do some viral marketing." The fun part is that they say this as if it is something that happens when you spend money on it. Viral is just as it sounds. Viral marketing is based on the premise that you will "pass around" something of your own free will without being paid and that a majority of a segment will do the same. The thing about viral is that it must be one of the following:

Funny
Weird
Gross
Shocking
Helpful
Sexy
Inspiring
Novelty

If your idea for a viral online campaign is anything short of the descriptors mentioned, scrap it. If your company is so tight that it could never let communications that may be taboo or slighly edgy slip through, then viral is probably not a viable tactic. Viral speaks on behalf of the person sending it. It speaks to their personality, kind of like a greeting card. If I send something to a friend, you can bet it is borderline offensive, sexual or at least give them a chuckle. Why would I pass around an ad for $.50 off of detergent. I wouldn't and neither would you. Packaged differently, a homeless man bathing naked in a park fountain with a funny tie in at the end saying, "He could have used $.50 off detergent!" might be viral enough to pass around if it is presented correctly. Viral is about pop culture not contrived and choreographed ad messages.

Going viral is a marketers dream. You may have noticed some of these off-the-wall commercials for candy lately. These attempts at being "weird" are attempts at going viral. The Starburst commercial on my YouTube page has gotten over 6 million views...for free. Starburst didn't have to pay for the extra 6MM impressions. Good for them.

Email
For any company that has cut a check for $10,000 or more pretty regularly in direct mail campaigns is very interested in moving their customers over to email. This effects the bottom line immediately. Just like with search engines, Email Service Providers play a big role in gatekeeping.

AOL is the big player here. Treat them like gold. A long time ago, email marketing was like the wild wild west. AOL had a lot of users. As more marketers began to take hold of email marketing, AOL noticed users drop off because they were being inundated with email from marketers. AOL fought back and began gatekeeping, penalizing spammers for abuse. Whitelisting was born. Whitelisting means that you promise Email Service Provider's (ESP) like AOL that you will adhere to their rules and standards when marketing to AOL users, even with their permission.

AOL is the toughest, but when email marketing is done right, this can be your most responsive group. Whitelisting is important. If you are sending your bulk emails through a third party, you will want to know their whitelisting status with the major ESP's like AOL, Gmail, MSN Hotmail and Yahoo!. Each has their own standards and as you build an email marketing history, you will build report with each.

"Opt-In" is the word of the day. If you send emails, all of your recipients must be opted in. This means that they explicitly gave you permission to send them offers. The CAN-Spam Act clearly outlines the legalities asssociated with email marketing, but the premise is that if someone does not give you their permission to market to them through email then you cannot send them commercial email.

Messaging and offers also play a big role in email marketing. The message must get attention and have a clear call to action. The balance between deliverability and aesthetics will always be an issue. Everything that makes an email visually appealing usually inhibits its ability to successfully make it to the target's email box. mobileStorm is a veteran in the email marketing space. More than just a provider, mobileStorm employs a Vice President of Deliverability whose job it is to maintain a relationship with each ESP. This relationship results in something called "whitelisting" which gives a stamp of approval for email marketers to email subscribers of some of the most popular ESP's. With so many changing considerations, it is smart to work with a responsible email platform.

An email database is worthless if the people in it don't want to receive your messages. I've seen clients start with 60,000 plus records and after an opt-in campaign was conducted, the list was reduced to 2,500 opted-in participants. The client in this case adamantly emailed all 60,000 records without their permission as we marketed to only the 2,500 opted-in recipients on their behalf. Needless to say, our efforts out-performed the client's SPAM effort. This is the difference between a "Database" and a "Working Database." Is your database "Working?"

India or Bust
I received a call from India the other day asking about my website. The gentleman proceeded to tell me that his company could guarantee top ranking in search engines and was prepared to take on our website at a nominal fee. All the red flags were raised and I hit them with the hard questions. At the end I said I was not interested, but I could see how the pitch would be enticing to a business owner.

Many things these days can be done for cheap. I have heard, "Why would I pay $5,000 or $10,000 to get a website designed when I could pay $300 like I've seen advertised online." Odds are pretty good at a $300 price tag you are getting a basic site that is a "template" and will have little to no customization based on your business objectives and the needs of your customers which may not allow you to reach your full sales conversion potential. It is also safe to assume that these companies will not address SEO concerns on the front end. What you may end up with is a pretty basic website that does about 5% of what it could potentially do for your business. If you are serious about using online to improve your business, I would suggest talking to a professional. Email me if you need one.

Getting Offline
This is just the beginning. I could have done a separate blog on each section written here, but I just wanted to touch on the hot buttons and push for participation. Email is intriguing and online marketing changes daily. It is a full time job to keep up and not something a business owner and operator usually does well. If you need advice, email me or for info on email marketing visit mobileStorm's website.

Thanks for taking the time to read my blog! Comments?

The Power of Appreciation

2008-06-28T15:38:00.000-07:00

Marketing, Money and More (Issue 7) 6/28/08

Never Expect
There is one great thing about the terrible disease of alzheimer's, the ability to feel apprectiation for something as if it is the first time something has been done for you. Although the analogy is a bit gruesome, the message is that gifts and favors should never be expected. The favor easily turns into "work" for the person that is giving when appreciation is taken out of the equation.

By the same token it is not healthy to do favors or give gifts for the feeling of "self worth" or "esteem". This is where your internal power comes into play. When your self-esteem is derived from being a source of dependency for others, you become what is traditionally known as a "care-taker." This is a co-dependency issue that requires couseling. (I may have had a bit myself.)

Lash Out
It is your responsibility to communicate and set boundaries. When you feel taken advantage of, let people know, but don't wait until you are drunk or angry... This is an obvious recipe for a worse scenario. It may make more sense to wait until you have a bit more of your senses about you. (Again, this is something I may have experience with.)

Boundaries are communicated not imposed. Make sure you tell people when they have crossed your philanthropic line. If you don't they will think that you enjoy making them happy and will no longer be apprehensive about asking for things. Say "No" every once in a while, even when you really do want to do the favor. Break the cycle.

Set the Stage
I've been out on dates where I've broken the bank at a nice restaurant and paid for a big Strip show...It sets you up to be a wallet for the other person. You have started the relationship out on an expensive note. You cannot build up to anything. Have you ever had a girl have the audacity to ask you if she could borrow money after 3 dates? Not good. Of course I said, "No." It is very interesting to me what girls will ask for. Apparently it worked on someone else.

Value
Much like in business, it's all about value. Do people value you and what you do? Do you value yourself. Who's job is it to communicate that value? Everyone has a responsibility to tell the people that they help and give to what went into that favor. If the relationship is mutually beneficial, the other will go out of their way to a similar extent in the future. Relationships must be fair and balanced to make sense. Will your friends go to the ends of the Earth for you? Will you do the same? Will you be the one to carry them to the ends of the Earth? For some people it is only important that their friends made the trip with them, not that they shared the workload.

The more you give without compensations, the less others will value it over time. It is human nature. Keep people on their toes. Command respect and recognition. Express when you feel taken advantage of and, most importantly, show the same respect for others...

Thanks A Lot!
I worked for a charity and the one lesson I took away was to always say "Thank you." People like to do things for others that APPRECIATE them. "Thank you" is a very powerful set of words. If you remember to say it after every selfless act, favor, gift and even when nothting happens you communicate that you recognize the efforts of others and are appreciative of what has been done for you. There is nothing worse that you can do in the non-profit world than to forget to thank a donor. They will never, ever forget and it can be enough to send them to another charity that does appreciate them.

This little bit of advice will help you in all aspects of your life. Business relationships are centered around mutual benefit and appreciation.

If you take one thing away from this post, please say, "Thank you!" to everyone that you appreciate. It is not always implied or assumed and it is nice to hear.

Thank you for reading this post!

Post-It Forward

2008-02-10T13:29:00.000-08:00

Marketing, Money and More (Issue 6) 2/10/08

Skip It
All this talk of recession is making people think more about "recession." As we further and further promote the idea of recession, the general public will act in a manner that they think will get them through the recession. Save money, spend less, pull out of the stock market, sell your home. This is perpetuating the problem. The power of perception is strong.

Consumer spending is down and foreclosures are on the rise (especially in Nevada - #1 in the country.) This economic downturn is expected to worsen into the summer of 2008. The government is trying to stimulate the economy going into a very important political year with a tax rebate of $300 - $1,200 for Americans. This will help, but to what extent. We need a mind change.

Think Growth
It is worse to think gloom and doom. Think of your every day life. When you think negatively about your situation it tends to get worse. It's the Law of Attraction. That is what The Secret is based on. The power of your thoughts to influence your environment. If we could unify the thoughts of the many to stimulate positive activity, then the economy would follow.

Think of value. People provide value to society in many forms. I provide value to society when I took the time to sit on the board of my local American Advertising Federation, buy a friend a coffe or get up 10 minutes earlier in my day to sort the recyclables. My contributions have an economic impact. If a million people get out and buy a coffee for someone, that is an increase of $1.5 million in consumer spending over the course of a day.

The Experiment
You've seen tons of these types of emails. "Don't buy gas today! It will spur a price war between the gas stations and that will help to bring gas prices to a manageable level." I think that requires too much participation from too many people. It sounds logical, but humans are emotional and these attempts to influence the public don't take into account the impracticality of not buying gas for a day.

I would like to start by being realistic. I would like to challenge a few people I know each month to do something that they wouldn't normally do as we head into tough economic times. If we can produce high levels of value in 2008, the economy will follow. Here are a few suggestions:

Buy someone a coffee

Volunteer time at a charity

Join a trade association

Buy a toy for a friend's/family member's child

Give someone a ride

Stay an extra 10 minutes at work each day (productive minutes)

Sell/buy something on ebay

Write a blog

Share success

I know this sounds like a movie...Pay It Forward. Well, I'm not Haley Joel Osment. The principle is sound. Do something for someone else that provides a value. If you own your own restaurant business, buy someone's meal tonight. If you have a tool that a neighbor needs, offer it. Find a charity that you have an interest in and ask them how you can help.

I am starting with myself. I am going to make an effort and lead by example. I have already begun. I will do more with my time in 2008 to provide value to myself and society and push through this period of recession. I hope this blog is one step toward eradicating what could potentially be an economic downturn. It is about reconfiguring resources. If you have a resource and have the ability to share with those that do not, you will be helping yourself in the long run. This will stimulate spending, goodwill and social activity.

Today and each month after, I will be sending out an email to close friends and business people to persuade them to do anything that is beneficial to someone else and society. Mobilization of those that have the energy and resources to make an impact, even just a small one. If you read this, please send out an email to your close friends asking them to do the same.

The Email
"Hey. I'm urging everyone to get involved. In 2008, times will be tough... or will they? If you can do something extra such as help a charity, spend a few extra dollars for someone else, help a friend or do something that creates some sort of value, we can help curb some of the impact of the recent economic trends that lead to a recession. Please forward this message on to a friend and keep the string going. This is not chainmail, but if we can "make change" now we won't have to wait for Obama or Hilary to get into office. Write down what small thing you can do extra this month on a post-it and put it somewhere on your desk. Don't take it down until you've done it. Once it's done, write on another Post-It. Do this all throughout 2008 and you can look at all the Post-Its that you've been able to accomplish. I want to get "Post-It" to construct a page where people can post "Post-It's."

Feel free to use this and pass it on.

I'll Have What Their Having

2008-01-21T17:51:00.000-08:00

Marketing, Money and More Issue 5 (1/21/07)

What Worked Yesterday...
I don't believe it when anyone says, "It's been done before." If it's been done before and it works for your brand, go with it. A smart person takes the best practices of their industry and reskins it for their business. What worked yesterday, might not work today, but it could work tomorrow. Never forget to test.

Have you ever gotten an annoying telemarketer and wondered who would ever buy something from a person you talked to on the phone? Me too. But...If it did not work, companies would not spend money on this relatively expensive tactic. It works.

I've worked with several casino properties here in Las Vegas and around the country. There are only so many ways you can do a slot tournament, poker tournament or other gaming event. It is the same promotion at every casino. They do them because they work.

Testing, testing...
I have spoken with many businesses. They come to firms or agencies looking for the guarantee. That does not exist and if your firm ever guarantees you anything, call them liars and find a new agency. A guarantee would assume that they have some sort of mind control or psychic ability. All a firm can provide is knowledge of what has worked for a similar customer and the ability to analyze information to make the best decision on the client's behalf. It is a game of knowing what the market is doing, what the competition is doing and breaking throug the clutter.

Test everything and give it a chance to work. If you decide that direct mail is right for your business, test it. Put together a campaign with a small list based on the attributes of your current customer or at least who you think might be your customer. Do an A/B Split. This test will tell you what sort of offer is most likely to get your target group through your doors. Once the offer is perfected, work on the creative. Does a postcard outperform a letter? Does increasing the size of the call to action make a difference in response?

Testing can and should be done for as many tactics as you can test in your marketing mix. Branding is the exception. You can test how well you are branding your company, but it is very expensive and may not be justified in your industry. Not every business is Nabisco with multi-million dollar budgets. It makes sense to spend $70,000 on market research when you are making a decision that could cost you $5 million.

They Did It, So I Gotta Do It
The car dealer industry is notorious for this mentality. They are all on TV, Radio and Newspaper trying to scream louder. Each is so affraid to step away from traditional media that they never try anything new for any decent amount of time. I have had a car dealer tell us so desperately how much they wanted to explore "outside the box" thinking (a term which has come to mean nothing due to overuse.) If everyone is outside the box, you might want to be in it.

Many businesses tend to look at what their competitor is doing and use that as the sole basis for their decisions. Competitive knowledge is good, but sound research and strategy is better. You may find out that your competitor is not being as effective as they could be and you'll just be adding to that waste.

Media Reps Are Good People, But...
A rep for a media outlet is not a bad person and most are very knowledgable. They have only one fault. They are looking out for the interests of their outlet and obtaining as much of your budget as possible. It is not always in the best interest of your business. The rep is doing their job and hopefully going above and beyond to show the value of what their outlet may provide. This is where the consultant or firm comes in. We study them with all of our tools and metrics and make them work to prove value beyond what our resources tell us. It is a win for the client because they are not talked into spending an inappropriate amount of their budget with a single outlet. Rarely is one medium appropriate for a client. It may be a start, but not the most effective mix.

Competition is Good
All in all, competition is good. It is what makes for great branding, keeps companies honest and makes us all a bit smarter. In the end, the customer wins because we tend to create more value when we are engaged in competive marketing. I would love to hear if anyone has a case where following the competition proved to be the right strategy.

Branding Begins

2008-01-07T21:41:00.000-08:00

Marketing, Money and More Issue 4 (1/7/07)

A Little Personality Goes a Long Way
I've had lots of first contacts with business owners. Their problems always seem so obvious to me. In this day and age, it takes more than the ability to cook to run a restaurant, more than slot machines to run a casino and more than good taste to sell soda. We've gone well above "basic needs" and we are feeding our emotional needs. We are all consumer addicts looking for that next emotional fix.

We get validation from jeans, attitude from the beer we drink and our sense of humor from insurance companies. None of it makes sense. Take the logic of this scenario:

I need clothes
I search for clothes
I compare price and quality of clothes
I buy clothes
I wear clothes

Each step is logical. We fulfil our need for clothes with a quality product at a good price. Now suddenly we throw emotions into the whole thing and it all gets complicated. Now we have a new scenario:

I need clothes
I search for clothes
I see a person I want to be like wearing ripped, faded jeans with paint splatters
I see the girl I like with the person that I want to be like
I find the overpriced, ripped, faded jeans
I pay too much
I wear clothes
I feel like the person I want to be like for a short while
The girl I like is still with the person I want to be like
I need more clothes

It's called emotional branding.

To Brand or Not to Brand
I've found that a good product will only go so far if there are comparable substitutes. Once the competition enters the market and the differences in your product or services become indistinguishable, customers rely on their emotions to make a choice. "Which do I like better?"

This is where branding comes in. Rely on society's need to fit in, need to stand out, need for status... We are emotional beings and to the detriment of our bank accounts. We move from one branded experience to the next and marketers have caught on to our weakness. The book Brand Hijack covers what happens when society shapes the brand such as in the case of Dickies or RedBull.

Branding Begins at Home
Most small and medium businesses look to ad agencies to solve their problems. Ad agencies tend to look at a brand as the perception of the business that they can create in the public eye. I believe branding begins a bit deeper. Healing begins inside. Here's an example:

I met with a restaurant owner a few years ago. He had a Mediterranean Restaurant attached to a small market. He explained the cuisine and that the restaurant was very slow. I spoke with him about what PR could accomplish, what print ads could accomplish, direct mail and so on. He told me to come in and try it out. I took a lady friend of mine and we met there. We came in and sat...and sat...and sat and after five long minutes, a very quiet server came to the table. She gave us menus, took our orders and didn't really say much and walked away. We waited for a while. The food shows up after about 25 minutes. Mind you we were the only other table in the restaurant besides an older couple already eating their food. We finished and were not asked about dessert and were presented with the check. I will say that the food was good.

The moral of the story is that I told the owner that there was nothing that marketing could do for him. All marketing would do is encourage people to come in for bad service so that they can tell 10 other people how bad it was. Dick's Last Resort can get away with that because they've built a brand around bad attitudes in their service.

The Customer Experience is King
Your brand begins with the owner or president. Once decisions are made about the customer experience, and preferably one that will lead to a profitable business, then the brand can be communicated. Branding has foundations in consistency in customer experience and management of customer expectations. Your service can be bad if it is part of the experience that you are selling. Your product can be average if that's what you are selling. If you claim to cater to a particular segment such as gay couples, your staff better buy into that. It's called a Brand Promise.

The best brand experiences can be found right here in Las Vegas. Each experience is coreographed down to the way staff members point to the bathroom. Themes are eveywhere. The Hard Rock Hotel & Casino Las Vegas hires young men and women that fit the profile. Tatoos, hair and attitude. Yes, it's even down to the hiring.

Just Start at the Beginning
Before you run out to find an ad agency you may want to evaluate your customer experience. Do my customers enjoy the experience we provide? Are the sales staff of the same attitude and corporate culture? Are employees empowered to do their job?

Speak to your customers on a regular basis and ask them what they like and don't like. This can provide great insight into what you are doing right and what you are likely doing wrong. Take notes and try to put some words to what you think your brand is. Even if all you get down is some rules about engaging the customer and visualize a few scenarios, you are that much closer. Once you've done as much as you can to improve the internal branding, communicate that to ALL of the employees. Tell them what the customer experience is supposed to be and accept nothing but perfection from them.

After that, you may want to talk with a marketing consultant and work out a formal plan. Once you have everything in a document, staff are living the brand and customers are happy and coming back, then you are ready to talk to a firm.

Let me know if you agree with what I have said or have examples that can help.

Get Involved

2007-12-02T18:02:00.000-08:00

Marketing, Money and More Issue 3 (12/2/07)

Let's Get Political...Political...I Wanna Get Po-lit-ical
The one class that was never offered in college that university curriculums never teach you is social business. There is no teacher telling you how important it is to go to lunch with clients, show appreciation for all of the offerings your boss gives you, showing up to company functions and creating a rapport with your peers. It seems like common sense, but it definitely is not. There are people that make their living purely on their ability to be social and connect people together. Here in Las Vegas, we have The Link which is run by Joel Jarvis - a producer for Kaercher Insurance and friend of mine that has truly shown that networking is more than being social.

It's called office politics. A mentor of mine once said, "You can be the best PR guy in the world, but it's the guy that golfs with his clients that will make the most money." That statement was a very real and very impactful one to me. Ever since I have made an effort to connect with everyone on some level. You can find something in common with everyone in the world because we are all human. We eat, we drink, we bleed, we breathe and we die. If you cannot find one thing to talk to someone about for 5 minutes, then you are making an effort to not be social.

Promises, Promises
Are you detecting an 80's song title theme in my headings today? Me too. Anyway, I have found that if there is a process to getting to where you want to go that is logical and intuitive but involves follow-through that 75% of people won't do it to completion. What am I trying to say??? I'll give you an example. If you knew that all you had to do to get a promotion was to show an interest in your industry and a desire to learn new things and you were told you had the recources at your disposal, what would you do? I would continue reading books that address "best practices," look into seminars and classrooms, join trade associations and potentially look at getting a Master's Degree. Not everyone thinks that way. Most people will think about it and put it off until their review comes. They will be told that they haven't progressed as quickly as their boss would expect and then they will get discouraged quit and start the process all over again somewhere else. It is a spiral that is hard to get out of but not impossible.

It's Human Nature
I attribute most of it to human nature. Look at the gym. I have continually been on an exercise program for over 10 years without missing a week. Year after year I watch a flood of people take over the gym in January and then about 3/4 drop off by March. It works out great for the gym owner because 100% of them keep their membership and only 25% use it. It is like free money. My dues would be much higher and the gym would be more crowded, so I thank the 75% that don't go.

The mentality of a person that is goal-oriented is logical, for example...I want a body that is in good shape. I have to exercise 3-5 times a week to get the body I want. I go to the gym 3-5 days a week and I see results and I continue to go.

It seems easy. When it comes to putting in the time and energy and people see how much dedication it takes, it becomes easier to give in to excuses and do other things with that time. They know what it takes to achieve the goal but something in them creates a barrier to achieve that goal. What is it? The same thing happens in othere areas of their life. Don't let you get in the way of what you want. Find balance and prioritize based on long term goals. It is all in your mind. A short work out is still a workout and gets you closer to the body you want. Learn something new even if it is just a new word in your industry glossary...it's a step and you moved foward toward your career goals.

Knowledge is Power, Relationships are Money
Whoever said knowledge is power was only half right. Knowledge can get you far, but having relationships with other decision-makers that have rapport with you and respect your knowledge will get you money. Now we are seeing the difference between a job and a career. You put much more of yourself into your career than a "job." I believe that is why it becomes so hard for career professionals to separate themselves from their work. They've become a hybrid of career and life because the two bleed into each other.

Keep the people you've impressed in your career very close. Remember their birthday, anniversary and just remember to pick up the phone and call them. It will go a long way and opportunities that find them will also find you. A phone call means more when there is nothing behind it. Just catch up and don't ask for a favor. Use the 3 to 1 rule. This means have 3 calls about them or just talking and then throw 1 in that asks for a favor. It builds loyalty (read The Loyalty Effect, one of the best books about a secret of economics.)

I Want to Thank You...
The first thing I learned from working for a non-profit was to ALWAYS SAY THANK YOU! It doesn't matter if someone opened the door or gave you a million dollars, say, "Thank you!" Even use a smiley face. People like to feel that their kindness was appreciated. A thank you can go a long way, forgetting to say thank you can kill a relationship.

Be on Time
If it is possible, be on time to appointments. It shows respect for the time that others have. I live by my calendar and successful people may have only minutes to talk to you. If you are late, you wasted their time and trust. It is a small step, but it makes you stand out.

Social Networking
I believe social marketing has become a discipline because as society gets smarter, there are more and more rules and contexts involved with social behavior and it will only get harder. I've managed to watch how behaviors communicate to others and I am very sensitive to how people act versus what they say. An action does speak louder and harder. If I say I really wanted to come to your birthday, but I went to a concert instead...it means I prioritized the concert over celebrating your birthday and no words can change that. Being late says I have no respect for your time. Not going to a work function means that you are not engaged with your company and don't care about the effort put on by your peers.

There is no way around communicating. It happens whether you do something, don't do something, speak, nod, move, don't move. Action means just as much as inaction. Think about how you want to be perceived. Forgiveness is a virtue of humanity so play the percentages and try to be "on" the majority of the time.

Here are a few tips:

Always say thank you
Take time to meet people and nurture relationships
Know more than you did yesterday
Work toward the goal and do all the steps in between
Be on time ALWAYS
Keep your promises no matter what; it builds trust
Listen, don't just wait for your turn to speak
Give credit where credit is due
Take every opportunity you are given to shine
Compete with yourself and no one else

I'd love to hear if there is anyone that has seen their career turn around due to changing to new philosophies...Please post and I will say, "Thank you!"

Agency Selection Process

2007-11-24T16:50:00.000-08:00

Marketing, Money and More Issue 2 (11/24/07)

Agency Arithmetic
Let's do some math. Say an agency has 30 staff members that work 40 hours per week each. That's 1,200 hours per week and there are 52 weeks per year for a total of 62,400 total hours each year. Agencies don't sell products, just hours. That is their inventory. Those hours are spread out amongst different departments and disciplines. There are also lights, a building, power, computers, research tools and subscriptions, seminars, classrooms, chairs, toilets, water, books and other related expenses that lead to a bottom line number that has to be spread and charged to the 62,400 hours available to sell to clients. It is a basic matter of running a business, it must be profitable but there are industry practices that drive up the expense for everyone.

Rolling the Dice

The average agency will do many "pitches" for work. Hours will be spent putting together these pitches. If the average agency wins 1 in 7 pitches, that is 6 pitches where the hours are written off. An agency could easily spend 100-200 hours on a major pitch. That reduces the available inventory of hours. Some agencies can be very selective about how much work that they will put toward winning a client's business and some have to just to compete. This is an industry standard that stems from the ambiguous nature of marketing. Since we aren't selling widgets, clients want to see what they are buying. There is no other way to show them the product than to do the work. Every pitch is a gamble and there may not be any return on that investment other than a letter thanking you for your effort. At the end of the day you gave away your best ideas, learned about a company that you will not be partnering with and have lower morale than when you started...But when you win, it's that much more rewarding.

Agency Selection Process
I have been through pitches for clients that have $5,000 per month to spend and pitches for clients that have millions. It then makes sense to give it your all for the ones that have millions and do a minimum amount of work to win the small clients, right? If it were that easy, I wouldn't take the time to write this. People watch too many movies. Not every client needs to go through the same process. Here are a few tips:

Assess what your account is worth to an agency in a dollar amount per year or month.
Have an expectation of what marketing can do for your business, even if it is wrong.
Do your homework. Read a few case studies within your industry.
Ask yourself what sort of agency culture will work best with your company.
Start out online and ask a few people in your industry for recommendations.

Now, what was your answer to #1? That will help you know what size firm to be talking to. Chiat Day will not speak to you if you have $5,000 per month, but a small consulting firm or PR firm will.

Size Does Matter
Now that you know you are talking to the right size agencies, do some homework. Ask for some references and their materials with a few case studies that match your business' situation. Once you have narrowed your seach to just a few candidates, call for a casual meeting with a represenative from each candidate firm at their office. Be upfront about your budget and your situation and let them come back to you with a proposal. Tell them your expectations in terms of what you want to see such as costs, spec creative, recommendations, etc. It is also important to let each firm know that you are talking to more than one firm, they will need to decide if they can accommodate your expectations. Firms do get short staffed, although most would pitch for the new business regardless.

How do you know if you should be seeing creative done "on spec?" Here are some ranges based on my experience:

$25,000 Annual Budget = Proposal with broad recommendations, case studies, etc
$100,000 - $300,000 Annual Budget = Proposal with specific recommendations, case studies, etc.
$500,000 + Annual Budget = Full agency pitch with recommendations and spec creative

These ranges are based on total annual budgets. It is difficult to quote because of the amount of money that may be spent on media or production. A $5,000,000 budget can translate into less than $1 million in agency revenue if there is a heavy media spend. The best course is to ask each agency how they will be demonstrating what they will do for you. If 2 out of the 3 agree to go to the next level by writing up some recommendations and showing creative, then you are most likely a valid client that deserves that respect. If all agencies pass, it is because the potential return on your business does not qualify for a pitch process. In this case, you may go back and rethink your position on what you would like to see.

Agencies Investment
An agency will invest time into learning the client's business. Marketing directors tend to want to reduce their rate over time. Agencies tend to want to reap the benefits of having learned the clients business and therefore reducing the amount of time spent on the account.

If you have found a firm that produces results, you must look at every dollar spent as an investment. Look at your P & L and share pertinent information with your agency. If the agency is performing, then a reward is in order, not a lower rate. Agencies are in business also. If they are receiving a fair rate with bonuses for performance, you probably have a very involved and motivated agency.

Outlining the Relationship
Retainers are great...for one of you. If your agency receives a monthly retainer for services and your workload is up and down, then you are paying for a block of time that does not get used. If the retainer dates back to 1997 and has not increased over the last 10 years but the workload has, then the agency loses. Here are a few fair potential scenarios

Min/Max Retainer - This scenario is based on a range. There would be a minimum and a maximum. The minimum might be $10,000 and the maximum might be $30,000. The agency could charge anywhere within this range based on usage but it gives an expecation on both ends for cashflow.
Performance - This scenario would allow the agency to truly be a partner in success. Goals are set for each campaign and performance bonuses are dispersed to the agency when they help achieve specific goals. A basic retainer would be attached to this for maintaining the account.
Account Planning Retainer - This scenario pays for account planning and account service on a monthly retainer. Strategies are developed ongoing and execution is done a "per project" basis.

These are just a few scenarios that give a bit more controll over spending than a traditional retainer. Some clients don't want account planning, but I feel that it is the strategic thinking of an agency that differentiates it. Otherwise you are looking for a specialty firm like a creative shop or an interactive boutique.

The point is that it is very costly in terms of time and expense to choose a firm that doesn't fit your business. Choose carefully and make sure you conduct an appropriate process in your selection. If you feel like you need someone to guide you, there are plenty of consultants out there and when you are talking about managing millions of marketing dollars per year, it's worth it to choose wisely.

If you want to add a few scenarios or throw out a situation, please do.

Branding & Marketing: How to Select a Marketing Firm that's a Good Fit for Your Company's Needs

2007-11-22T23:44:00.000-08:00

I read over this blog and it is valid and supports what I believe is a good start when searching for a firm.

Branding & Marketing: How to Select a Marketing Firm that's a Good Fit for Your Company's Needs

$10,000 for an Ad Campaign?

2007-11-22T21:35:00.000-08:00

Marketing, Money and More - Issue 1 (11-22-07)

I have been with Virgen Advertising for 4 years, 3 of which I have been the lead business developer. We are a mid-sized Vegas agency with small accounts that spend a few thousand dollars here and there and very large accounts that spend millions of dollars annually. I have had clients from Strip casinos to the mom-and-pop's running a corner restaurant. The question keeps coming into play over and over and over from all size clients and there is never really an answer that seems to pacify everyone.

Why does and ad campaign cost $10,000 to create? Did it really take your artists that long? The creative concepting time seems a bit excessive, can't you just spend less time on it?

I do my best to combat these questions and the answer can involve one or all three of the following:

Value
Time
ROI

Ad agencies employ various techniques when pricing their services. Hourly rate, total estimated project cost and value.

Hourly Rate
When a service is ongoing such as public relations or strategic planning, an hourly rate is applied. Marketing is endless. There is always more you can do, but there is usually a budgetary restriction that tells us what an agency can accomplish for a client. If the client asks, "How much should I spend on my marketing monthly?" My answer is, "Well... you need to spend what makes sense to remain profitable and reach your growth goals." Agencies will maximize every dollar you give them. It is up to the client to say, "I have $50,000 dollars and I want to increase covers in my restaurant by 30 covers (restaurant lingo meaning table customers) a week."

Wow! A dollar amount and a goal. That's all we need. I would then tell the client that with such a limited budget, we should try public relations and lifestyle marketing to increase word of mouth and get some good press on the food, chef, ambience, etc. We would need a minimum of 30 hours per month to work on this, so a retainer of roughly $3,000 - $4,000 would be sufficient to cover the amount of time our professionals would spend selling the local media on the client's restaurant. At that hourly rate, we would eat up the budget in a year. We may even recommend scaling back PR and employing some offer-based direct marketing to promote sampling. You begin to see how there are varoius ways we can apply a budget. This leads us to the next topic...

Value of Service
When we talk about creative, we are talking about art. What makes a Picasso worth millions and my water color paintings worth less than the blank piece of paper I started with? The answer is the amount of people that find the Picasso appealing and the laws of supply and demand. Now I'm not saying that ad agencies are pumping out masterpieces, BUT they are bringing appeal to your message through the use of images and text that connect with your target emotionally. What's that worth? My watercolor painting is awesome to me, but the world wouldn't pay a dime to have it. It's worthless and will not capture the attention of anyone. It can't be used to deliver a message.

In our example, we talked about a restaurant. Let's say the agency quotes the restaurant $10,000 to do a print campaign. Did it take 100 hours? The final ad probably didn't. The 30 versions prior to getting to the final probably took a chunk of time. Are we using pictures of food from the restaurant? Do we have any? Will there be a photo shoot or will we look for stock images? STOP. This is where it starts to spin out of control for the small restaurant owner. If you are a restaurant that is losing money (as is industry standard in the first year of operation) then this may not sound like such a good idea, but if you are a restaurant chain and you have 5 locations, this may be a great idea and worth every expense.

The point is what? Although each client will have varying hours to develop an ad, we charge $10,000 to put together a branding campaign. The market across the country says that $10,000 is what a branding campaign is worth. Somewhere in there the agency costs are covered and somewhere in every agency business plan is something about profit so there is some of that accounted for. Negotiate. Tell the agency what you are willing to pay. If you don't like their work that much you should probably be talking to another firm anyway; however, if you love their work and they have case studies and references proving that their creative expertise sells then you as the client need to decide if your brand is worth the expense and if it has value.

ROI Is the Answer
Return on Investment (ROI) or Return on Opportunity (ROO) are what should guide client decisions about marketing. If a campaign will yeild no returns, do you execute it? Probably not unless the wife of the owner likes the color blue and puppies and wants to see her last name on a billboard. Look at your annual revenues and ask yourself, "What is the maximum amount I can spend if I want to grow by 20% this year?" That is a key question. It has a goal attached that can be used to calculate a dollar amount. If you are a start-up, then this is probably mapped out in your business plan. Now you can go to an advertising agency with a marketing budget and a sense of what ROI needs to be obtained from the spend. The agency will tell you if they think your budget can achieve your ROI goals. You may need to adjust based on recommendations.

All Firms are Unique
There is very little that is uniform in the marketing world. Standarization occurs where it can, but "best practices" are not always established for the ever-changing world of advertising. Match your business with a firm that complements it. If you have $50,000 a year to spend, then you probably aren't talking to Young & Rubicam. You are probably speaking to a small-to-mid-sized firm with less than 50 people. The larger the agency, the bigger the building, the more equipment, the more toilette paper, the more books, the more media research subscriptions, the more payroll, the more, the more, the more. Costs of providing the tools and space to manage all the various disciplines of marketing go up with agency size and that affects rates and prices. A good agency cost more just like a good interior designer costs more.

You Get Out What You Put In it
Each agency will have its own process. A good agency will spend many hours and involve multiple people in the creative process to deliver the very best ideas to the client. Another agency might allow one guy to spend 2 hours and you get the best idea that came from that one person in that short time. I don't care how creative that one guy is, he needs time to think of ideas. You get what you pay for. More time usually means more creativity. The one who spends less time will be able to charge a lower price in less time at the cost of mediocre creative at the end of today. If mediocre is appealing to your audience, then go with it. I've seen it work. If your brand demands the very best and your audience will judge you by the level of your branding, then you will end up paying for the extra time. Now you begin to understand what price speaks to.

A firm of 5 people that can charge $200 for a print ad can't be compared to a firm that has 50 employees and charges $10,000 for a print campaign. Price cannot be the sole factor in this decision. There has to be a fit in so many other places as well as countless other considerations. Do your homework.

I will be posting more and more about these issues in order to educate business people that haven't had enough experience with agencies to know what they need to know. I've seen a lot of people get burned and then they don't trust agencies and every nickel on an invoice becomes and epic battle. The next post will be on agency selection processes.