Nick Baggott's CRM and Digital Marketing Blog

Vertu CRM Database Pitch

I have just completed my role as project manager for the Vertu global CRM database pitch. A partner has been found and we are now ready to start moving ahead. I cannot give away the result as all parties have not been informed, but it has been a fascinating process. The variety of responses to both the RFI and pitch has surprised me, both in terms of solutions offered and quality of pitch.

It has been a pleasure to work with the Vertu team. It is great to work with people who know what they want, but not necessarily how to gte there and who trust your judgement and advice. It has been fun, illuminating and stimulating. May I wish all concerned every success.

If you want a stylish top end phone, then click on the link to find out more. www.vertu.com

New Interbrand report

Latest interim global brands study released by Interbrand. Here it is..

Interbrand Report

Crass use of Valentines Day by HP

I couldn't believe this when I got it in my in box. Someone in the marketing team at HP obviously feels that the most romantic gift you'd love to receive from your valentine is not a bunch of flowers or a weekend away or a romantic meal, but a new HP lap top! I can imagine my wife's reaction if I was to say "Sorry Sue, I was thinking of arranging aluxury break in Tuscany, but I thought you'd much prefer a new PC".

I am all for event driven marketing, but only if there is a genuine customer need or insight and some brand fit! Come on HP, you can do better than that! If anyone out there gets any more ridiculous Valentines or Easter or Credit Crunch themed messages - please share them...

Using the purchase funnel in a web 2.0 world

My colleague Matt King sent me a link to a really interesting blog debate about whether the purchase funnel is relevant in a web 2.0 world - particularly in the automotive sector.

The article states that the purchase funnel is dead as consumers now have more complex buying processes in a web 2.0 world. Personally, I think the comments after the article are the most enlightening and accurate. That the funnel is still relevant, however the consideration phase in particular, is much more complex and our marketing tactics need to change to accomodate this.

What do you think?

e-consultancy online engagement report

e-consultancy have recently released their 2009 online engagement report. Here are some highlights from the Exec Summary carried out amongst 1,300 marketers (2/3 of which are UK based):

- only 45% have a defined online customer engagement strategy

- 51% say that a deteriorating economy has led to a greater emphasis on customer engagement

- 38% say they are focused on increasing value from the customer, whilst 34% say it is about creating value for their customers

The survey also askeed them which channels thewy will focus on: 59% say e-newsletters, 41% user ratings & feedback, 37% user generated content, 36% blogging & 36% branding in social networks like facebook.

The survey reflects my experiences. I see many companies showing a desire to build customer engagement online, but many of them have little idea how to do this, which channels they should use or how they can measure it. I guess that is why I am so busy!

The Long Tail

I’ve just read an excellent book - The Long Tail. It is well worth a read Like most business books the idea is simple and some of the chapters can be skimmed, but there are still some useful nuggets all the way through.
The premise is that whilst “hits” such as movie blockbusters, best selling books or hit TV shows are what the industry focuses on - the % of air time they are getting is falling because the internet driven “free” distribution opportunities like Amazon & iTunes allows consumers to buy whatever they like - choice is everything.
In fact the 98% rule applies - that 98% of every CD or book or download sells something. This Long tail equates to around 25% of all their revenue. i.e 25% of sales come from more obscure songs or books or whatever, that the retailer wouldn’t normally stock.
That means bands or books or brands can set themselves up and sell their products and services so much easier directly now. Take google - there is good business from brands paying for search, there is also another great business selling obscure terms to specilialists, such as an individual orchid grower or someone that repairs Tag watches or advises people on gluten free diets or whatever they do.
The opportunities for retailers, aggregators, brands and individual small businesses are great.
Anyway - well worth a read.
The Long Tail - by Chris Anderson and only £4.99 on Amazon

Have an entrepreneurial spirit

What is it that binds together the brands of the future? Why do some new concepts fly, while most fall by the wayside?
It is that entrepreneurial spirit that sets them apart - that willingness to try something different and be passionate about being different. They take the best of the Challenger Brands philosophy and make it their own. They do it instinctively. They have a feel for who their customers are and what they need. They also have a higher cause that drives them - to knock the established leader brand or to provide a service that they feel is missing.
Take some great entrepreunerial brands, that I have come across recently….
Brighter Business is a start up, direct sell insurance business. They are driven by a passion for offering a better service to the often neglected small business sector in a no-nonsense, jargon free way. The founders come from the big establishment insurance brands and know how this audience gets a raw deal. The Marketing Director does not come from within the industry, so has taken a fresh look at how to market in this sector. They see the opportunity.
How about Go Lower? A low carb snack - Hannah was driven by the lack of low carb options available and decided she’d give up corporate world and make a go of it. Now they are selling Go Lower snacks in the UK & US and in the major mults too. Check them out next time you are in Tesco…
Take Beanscene. A wonderful Scottish coffee & music brand. They are not Starbucks - they deliberately do the opposite of Starbucks, Costa and the rest. They don’t over brand the coffee shops, they don’t spend fortunes on advertising, they don’t use clever analytics to find the best locations, they don’t have a business model based on small locations in high density areas. They have an instinct for their brand and their customers. They don’t over sell & they satisfy their customers’ needs in the most surprising ways - “you like the music you hear - we’ll show you where you can get it” or “you like the sofa you are sitting on - we’ll show you where to buy it”. People visit Beanscene for different reasons to Starbucks. Sure you can pop in for a coffee to kill 30 mins and put your feet up, but you can also head down there in the evening to catch a new band play live or to just turn on your lap top, do some emails and listen to some cool new sounds. They have embraced the digital age, but they don’t shove it down your throat.
What are these challenger brand principles? There are a few and they have been published many times before. Here’s three that I think really make the difference…
Build a lighthouse identity - i.e.stand for something and stick by it
Assume thought leadership - use PR and have a voice about the things that make you different
Become idea centred - make the idea bigger than the brand - actually, make the idea the brand. A brand is a set of values not a logo and strapline. The ideas behind Beanscene and Brighter Business are simple, engaging and motivating to consumers. They are also genuinely different.
Check them out:
http://www.beanscene.com/
http://www.brighterbusiness.com/
http://www.golower.co.uk/

CRM or RM, which are you?

CRM & Relationship Marketing, the terms are often interchangeable. I receive numerous invitations to meet prospective clients or speak at events to talk CRM. But what do they mean?
As I see it, there are five approaches:
1) Transactional Sales driven CRM - this generally involves SAP or Siebel or some other expensive operational CRM system. It costs a fortune, rarely pays back and generally delivers about half of the original project scope. But if you are a sales driven organisation, that manages a large number of leads (someone like Yell for example), you need one.
2) Next generation CRM - think of this as a smarter, more integrated version of Transactional CRM. It probably involves a global database, but the key is to add some automated processes and tools for registration, measurement, campaign management and similar operations. This is smarter and more marketing friendly. Still a huge investment, but at least it helps you measure what you are doing and create a learning organisation. Microsoft’s internal Global Marketing Platform is a great example of this.
3) Event Driven CRM - extremely customer focused, but still automated and process driven. The focus is on reacting to changes in customer behaviour and circumstances. Think of a mobile telco sending you a note to suggest changing tariffs when you increase your overseas calling or a frequent flyer program that recognises that you have just achieved silver. The key here is to develop the rules that drive the system that are driven by genuine customer insights.
4) RM programs. FMCG brands don’t really do CRM. They do Relationship Marketing, some (like Diageo) do it really well. You don’t need a huge SAP system. All you need is great content, a marketing database and genuine consumer insight to help you to segment audiences and deliver a personal experience. If you get the content right and enough high value consumers love your brand, then you can build a large scale program that delivers ROI.
5) Community RM - this is the coming force. Forget one way beamed communication from brand to consumer, think two way engaging content co-creation. Allow loyal consumers to be advocates. Let them re-publish and share your content for free. Let them create content for your site. Let them share the experience with whoever they think will appreciate it. We’re working on a number of these sites right now - watch this space