Turning Marketing into Math

Jon Miller, Co-founder of Marketo and currently their VP of Marketing, is changing the way marketers market, starting first with his own company.  My first interview with Jon is the basis of a case history that will appear on FastCompany.com shortly.  The following is the Q&A from my follow up interview, which is also rich with insights.

DN: You mentioned Salesforce has integrated a Twitter tracking tool.  Are you using that and have you found its made much of a difference?  How else are you integrated social media monitoring into the overall process?
Social media is a vital component of our offering.  As the number of channels continues to proliferate, businesses need technology that allows them to listen to a prospect’s online body language, no matter where they are, online or offline.  Our marketing team uses Marketo to listen, score, and segment prospects based on what they say.  We’ve had some great successes with this – for example, one prospect tweeted that they were looking at solutions; we engaged socially and turned them into a customer within four weeks.

DN: As a result of using your own product, have you asked/forced the development team to make improvements and/or enhancements?
Absolutely. Our product development team and our marketing teams work very closely together. Marketing is always talking about what can be improved or providing ideas on new features that should be added or that would be useful.  The marketing team also constantly engages with customers on how they use our product to drive revenue, and what they are looking for next in the solution.  This provides a very valuable source of input.  So the marketing team is the first touch point as we continue to build out our product roadmap.  This is a product that has been built by marketers for marketers, so they are very vocal about how they would like to see the product grow and we encourage that.

Who do you consider to be your main competition?  And why do you think you have a competitive advantage over them?
We maintain a significant advantage over our competition, including vendors like Eloqua, in a number of areas.  First is the power and ease of use achieved with Marketo.  It is a radically better user experience that allows companies to be up and running complex campaigns in a matter of weeks, so they quickly realize the time to value.  Next would be our scalability, as your business grows Marketo grows with you.  Our customer base ranges from small start-ups with a one-man marketing shop, to multi-national companies running complex global campaigns.  Finally, I would add that our vision and thought leadership plays an important role in driving our market lead – sales and marketing leaders that are thinking strategically about how they can apply innovative software and techniques to drive an increase in revenue tend to gravitate to Marketo.

DN: You spent a fair amount of time explaining the problem–is this an important part of your sales process? Or do prospects already know they have the problem?
We really get a mix of potential customers who are aware of the problem and are looking for the right solution and those who know there is something wrong but haven’t defined it just yet.  For the prospects who have yet to define the problem, it becomes an integral part of the sales process, because you need to know what is broken before you can go about fixing it.  Again, this is where our vision, thought leadership, and content marketing plays a key role in engaging with the customer, as they come  to see us as trusted advisors.

DN: Growing as quickly as you have in two years, do you have a corporate culture? is this an important part of your ability to grow quickly too?
We definitely have a corporate culture.  I would have to say that collaboration is a big part of our corporate culture.  Like I mentioned earlier, our marketing team works closely with our product team, but it doesn’t stop there, all departments within Marketo are encouraged to provide their ideas and feedback with each other.  We work closely together and are passionate about what we do, and the passion of every employee here has really been an important part of our tremendous growth over the past few years.

DN: Does Marketo have a “brand voice” and if so, what is that?  Can you point me to some pages that express your personality?  I get a sort of no nonsense feel from your website but not a lot of hand holding friendliness.
Marketo is all about innovation, unmatched quality, precision and professionalism.  We are also very passionate about our customers’ success and satisfaction.  As we continue to grow, you will see a larger focus on our customers and their stories on our website because they really speak the loudest for us.

DN: How do you measure customer satisfaction?
Our success is driven by the success of our customers.  We are constantly in contact with our customers checking in and seeing how things are going and providing additional value anywhere we can.  The number of customers who are willing to be references for us, and speak at our events is another great measure of the success they are achieving.

DN: Do you have a mechanism in place for customers to give feedback and or product ideas?  (like a Get Satisfaction?)
We launched our Marketo Community last year.  It is a great place for customers to go and share ideas, give feedback and interact with each other.  When someone submits an idea other customers can vote on it as well and we certainly take those ideas into consideration when we are building our product roadmap.

DN: Talk to me about content marketing and what you all do in this area?  I know you mentioned some stats on the phone but do you have a staff of writers that create all this content?  Do you have an editorial calendar that is guided by SEO?
We have very talented marketers who are excellent writers.  Most of our content is created by our marketing team.  Our blog posts, cheat sheets, definitive guides and more is all written and created by our marketing team.  They are the experts and they know best what other marketers want and need the most. We have one of the best marketing teams in the world.

DN: You called the category Revenue Performance Management–do prospects know what this means?  and what are doing specifically to build awareness of this idea other than me writing this story;-)
Revenue Performance Management (RPM) is a new category, so part of helping companies to join the revenue revolution is educating them about what isn’t working about the old sales and marketing business model.  We have a comprehensive thought leadership program designed to educate the market and engage in a dialogue on RPM. For instance, we started with Phil’s Revenue Performance Management Blog, and have spoken at a number of different sales and marketing events on this very topic.  We also just kicked off a 14 city tour across the US to drive awareness that includes an executive roundtable discussion about the whole idea of revenue RPM.  While it’s keeping me on a plane every week, the turnout to these events so far has been phenomenal – it’s been standing room only at every one, and the conversations have been fantastic.  The road show is just getting under way, and hitting major cities around the US – I encourage readers to check out our schedule and come to an event! www.marketo.com/rock-your-revenue.

CMO Insights: A Social Media Weigh In

After The CMO Club Summit, I caught up with Hope Frank, Chief Marketing Officer of WebTrends to get her take on social media.  As “the global leader in mobile and social analytics,” Hope’s company not only uses social media to market themselves but also  monitors social as a revenue stream making her uniquely qualified to weigh in on this hot topic.

DN: What are Webtrends primary objectives for social media?
We use social media to distribute and facilitate conversations pertaining to WT digital marketing thought leadership, primary research and analysis of buzz and trends online.We also use social media to extend the reach and impact of traditional marketing efforts to grow awareness among key influencers and prospects.

DN: Do you use social media for customer service?
Yes. For monitoring and problem solving as well as for gathering consumer insights.

DN: How important is social media in your overall marketing mix for Webtrends?
It is essential and deeply integrated. Growing our communities, developing and curating compelling content,  experimenting and innovating on social media platforms is part of every effort we execute.

DN: Since the tracking of social media is part of Webtrends’ product/service offering, how important is it that Webtrends be on the forefront of social media practitioners?
Our Digital Marketing team is empowered to lead by example, to solve big marketing challenges, to iterate and to loudly share our stories. We have direct access to the world’s best global tools and experts, it is amazing! We are fortunate indeed to be in this position.

DN: What has worked for you in social and what hasn’t?
We see the largest impact of social media when we execute integrated ideas that launch with compelling content/experiences then leverage our media engine,  then mix social to amplify the message and increase the value. We have also seen great success running self-contained programs in Facebook where we purchase ads that drive to FB apps. We’ve been able to then take FB campaign learnings and apply them to broad based marketing efforts.

It’s cliché, we all know using social media as another “channel” to push out messaging and brand/product news fails. In the early days when we could only support pushing basic messages out and not integrating or engaging deeper, we experienced limited success.

DN: As evidence of WebTrends ability to monitor social media and turn this into social currency (in this case, PR), Hope provided the following links to all the “brand elevation and buzz analysis” Webtrends achieved during the #RoyalWedding.  The Mashable infographic is quite cool.

 

CMO Insights: Growing Role of Social Media

At The CMO Club Summit last week, Grant Johnson, CMO of Pega Systems joined a panel discussion on “new innovations in customer acquisition and retention.”  After the panel, I caught up with Grant and asked him about the role of social media in Pega’s marketing plans.  Here’s the Q&A:

DN: From a marketing perspective, how important is social media to Pega right now in the overall mix of options?
Since our goal is to allow people to more easily engage with and access the Pega brand however they want, social media is becoming increasingly more important to us as a part of an integrated and multichannel marketing mix.  It’s a small spend today, but we’re spending more time and effort focusing on this, and the activity has ramped up fast.  For example, you can find all Pega news items and links to a variety of content on Twitter, where we now have nearly 1,100 followers; you can view Pega videos and educational content on YouTube; you can engage with Pega employees and peers on our Facebook page and in our Pega Forums; and you can also subscribe to our content via RSS feeds.

DN: What needs to happen at your organization for social media to become a larger priority?
The biggest challenge with social media in most organizations, including Pega, is measuring results back to customer interest and loyalty.  There’s a lot to filter through in order to separate the noise from the signal. We listen closely to our customers and have the ability to focus more on this as their needs dictate. We use mechanisms such as “likes,” “downloads” and “views” to understand the impact of social content that is created, but ultimately we’ll need to be able to better drive customer activity and engagement as a result.  Pega has historically been highly customer focused and as with many of our other initiatives, we will always adapt to their needs in order to continue helping them meet their business improvement objectives.

DN: For Pega, does social media play a role in customer service?  If not, do you see that happening any time soon?
Yes, social media also plays an important role as a medium for customer support and feedback at Pega. Our customers are very vocal in our forums about areas that they would like support in or new features they would like to see in our products. We also have an internal community called the Pega Developer Network, which allows our customers to collaborate and get help specifically with regard to their unique implementations, so as to increase their product understanding and the value of our support. We see this activity growing more in the future as social media channels become more and more common.

DN: How do you think social media could impact Pega’s business down the road?
It’s already impacting us in a positive manner, serving as a real-time and dynamic channel to communicate with customers and prospects. Today, Pega provides social media capabilities within our products, allowing developers to use social media tools to collaborate on business processes and case work. Pega also provides social media capabilities in our CRM products, including the ability to monitor social media such as Twitter and bring that feedback into a customer service setting where it can be addressed. We see two emerging trends in customer service that could impact us even more down the road: first, social media is helping us better service our customers across channels, and crowd-sourcing and self-service is becoming a reality; and, second, we believe that the ability to listen, analyze and act via social media – to actually fix broken customer service processes more quickly – will improve service delivery and customer satisfaction in the future.

CMO Insights: How to Connect with 19 million Fans

During The CMO Club Summit in NYC last week, Eva Press, Director, OREO joined several panelists to discuss “Engagement in the Digital Age.”  After the panel, I caught up with Eva.  Here’s the resulting Q&A:

DN: You and Frank Eliason of Citi seemed to be coming from opposite ends of the spectrum when it comes to using partners to help manage social media engagement. Can you speak to the advantages of working with outside partners like your digital/social media agency?

For Oreo, our agencies are truly our partners and extensions of the brand team. We work very carefully to make sure all people who work on this beloved business, whether within Kraft or an external business partner, really understand how the brand provides people with moments of childlike delight – and that spirit should be infused in everything we do. Our digital/social media agency, 360i, is expert in the social media space. So they not only must understand how to translate the essence of Oreo into language that fits on Facebook, Twitter, but they also have a broad understanding of the digital landscape. So they can keep us up to date on trends and help us discover ways to improve our ability to connect and engage with Oreo fans based on best practices and constant monitoring of the conversation around Oreo.

DN: Do you see any risks in having outside partners manage social media engagements in channels like Facebook & Twitter? And/or what have you done to mitigate those risks for Oreo?

As 360i came onboard in June, 2010, we spent a lot of time grounding the team in what Oreo stands for. And they were instrumental in helping us bring our Oreo voice to life with our global community of fans in social media. 360i leads our digital and social efforts, but they are also a key partner as we develop overall marketing plans. We work together on all tweets, Facebook posts, and other social messaging. Social media engagement is 24/7 – and being constantly engaged is even more critical with a global brand like Oreo that spans time zones across the world. You truly need a team, and we have jointly built a great social media team that is able to engage with fans in real-time. It is a team effort, and we have a tremendous amount of trust in our agency partners. That’s so important because the Oreo brand is so deeply loved and trusted.

DN: A lot of social media programs seem to be done in isolation. Can you speak to how you’ve been able to integrate social into your overall marketing initiatives and the advantages of doing so?

Today, we live in a digital world where people have access to everything a brand does. Marketers can no longer think of engaging with consumers in terms of channel or by media – whatever we say and do is seen by everyone. That actually creates a huge opportunity. Social media can help amplify the programs we are doing in other places – to make sure that an Oreo fan who may not be watching the TV show where we ran our ad has a chance to see the ad, comment on it, and share it with his or her friends. We can ensure the most loyal Oreo fans know about new products, have a chance to enter promotions, and that we’re providing fun games and social currency like our Fan of the Week program. But it only works if all of the people on the brand team and all of the agency partners recognize the value of truly integrated marketing, working together to translate ideas from traditional advertising to digital advertising to PR, to create something that is bigger than the sum of its parts.

DN: How are you measuring the success of your social media activities for Oreos?

Measurement is essential. Certainly we’re always working to understand how social media can drive business growth – and we are starting to see an impact on our business results. But it’s also critical to see how meaningfully we are engaging with our fans because Oreo is so deeply loved.

In terms of measures, we look at our social media in terms of the numbers of people who follow the brand on Twitter and “like” the brand on Facebook. But we are also looking at the engagement of those fans: how many people retweet what the brand says; how many people like or comment on a Facebook post?

Q: You mentioned the challenges of digital coupon distribution via social channels and how they can backfire into bad WOM if/when retailers don’t accept them and/or consumers can’t print them. Assuming this means you won’t be offering coupons in the future, do you see social being able to drive retail traffic or will you think of it more as a retention channel?

We are always looking to provide value to our fans, and coupons – digital or otherwise – are certainly part of our consideration set when planning. That’s true for Oreo, and Kraft Foods more broadly. But in social media, it’s important to understand your fans and take a thoughtful approach to what is meaningful to them in the context of your community. With Oreo, we have seen that our fans have responded very positively when we provide information about new products, spark conversation about the moments of childlike delight Oreo brings, or celebrate fan generated content. We feel that builds advocacy for our brand, and contributes to our business success.

Social Media Isn’t Easy (Part 2)

When Oscar Wilde observed, “experience is the name everyone gives to their mistakes,” he was clearly anticipating the age of social media.  Mistakes abound, some minor, others calamitous but all offering guidance for those who choose to learn from them.  Here are five more mistakes that I’ve observed, each provided with suggestions on how to fix or better yet avoid altogether.

#6 Ignore social media

One in three big brands, across a wide range of sectors have yet to commit significant time and resources to social media. Highly regulated industries like financial services and pharma are particularly cautious given the lack of clarity offered by regulatory bodies like FINRA and the SEC. Other laggards are taking the ostrich approach, hoping that social media will just walk on by and leave them in peace.

Ignoring social media for whatever reason simply won’t cut it. Doing so means the conversation is happening without you, eliminating your opportunity to respond to the negative, reinforce the positive and or close the door to a competitor who is more socially adept. If you are afraid your customers will say bad things, you’re probably right but rather than turning a blind eye, engage your detractors with honesty and fix the problems.

Ignoring social media also means you’ll have no means of fighting a social media fire if one erupts. Domino’s Pizza found this out the hard way when two young jokers thought it would be funny to make a video of themselves putting cheese up their noses and then onto a customer’s pizza. With no social media channels in place, Domino’s HQ floundered and sales dropped nationally. Meanwhile, Ramon DeLeon, the GM of six Domino’s in Chicago, used his long-developed social channels to put out the fire in his area, rallying his fans and growing his sales.

#7 Limit employee access at work

A lot of companies restrict employee access at work to sites like Facebook, Twitter, LinkedIn and YouTube, afraid that productivity will drop. As such, there is a limited understanding of the channels themselves as well as the business opportunities that they can create. So instead of having thousands of eyes and ears to watch, listen and learn, the knowledge remains concentrated and the opportunities limited.

The simple truth is that companies that want to make the most of social media need to have a lot of social people across just about every department. The benefits of this open approach are far reaching, allowing the organization as a whole to cast a broader net to catch fresh ideas, important trends, hidden prospects and even future employees.

One company that has benefited from this open approach is the behemoth IBM. Realizing a few years ago that their clients hire IBM because of IBMers, they made an all-out push to become a social business. Presently, IBM has over 30,000 employees on Twitter, over 200,000 on Facebook, over 200,000 on LinkedIn and over 35,000 bloggers. Add these to internal networks and a 75,000 strong network of ex-IBMers and you’ve got a massive community that creates and shares content with unrivaled speed and agility.

#8 Selling too hard

For most brands, social media is not the ideal place for the hard sell yet that hasn’t stopped many from trying. I heard a marketing director of a hospital call Twitter “a dumping ground” and a seasoned direct marketer describe social as “email on steroids.” Typically the result of trying to sell too hard too fast via social channels is nothing — no engagement, no interaction, no referrals, etc.

No one likes a blowhard and there is no quicker way to be unfollowed, unliked or just plain ignored than by tooting your own horn with relentless monotony. On the other hand, if you take your mother’s advice by “yacking less and listening more,” you’ll have lots more friends, friends who will be very interested in learning more about you when the time is right.

Keep in mind that 50% of the people who “like” or “follow” a brand, do so because they hope to get beneficial information or offers. Curate your content carefully, a bit like you might on a first or second date. Once the friendship is secure, feel free to put forth relevant offers. Skittles, in particular, has benefited immensely from an entirely soft sell approach, amassing over 15 million fans on Facebook in the process.

#9 Multiple voices

Perhaps because it is so easy to create content, some marketers feel it is okay to present completely different brand voices even on the same channel. A smarter approach is to establish your brand point-of-view upfront and to employ the various channels like instruments in an orchestra, creating a harmonious and synergistic effect. Defining what you are for and what you are against, will not only give you direction for execution but also it will give you permission to engage with your consumer on your subjects of mutual interest.

Among the best examples of this approach comes from an unlikely category — feminine hygiene. Targeting young women 14-24, Kimberly Clark launched a new line of tampons called U by Kotex. Going against the usual euphemistic approach, U by Kotex established a clear POV with a “bold honest attitude towards all things period and to call BS on everyone who doesn’t.” This POV permeated advertising and social media, helping the brand grab 20% market share and remarkably appreciative fan base. (FYI, the U by Kotex presentation was among the best at the BDI’s The Social Consumer Conference last month).

#10 Misalignment of platforms and goals

With so many different social media platforms to consider there is the natural temptation to try a bunch of them. This temptation is further reinforced by the seeming absence of costs to use these platforms and the presumed “cool factor” a brand may think their getting by using them. The simple truth is that not all of these platforms are right for every brand especially when you consider a particular brand’s objectives.

Dell has been particularly adept at aligning the platforms with specific business goals. Dell’s IdeaStorm.com gathers customer feedback and crowd-sources new product ideas. Recognizing various uses for Twitter, Dell has a variety of accounts including @DellOutlet for deals on refurbished computers and @DellCares for customer support. Dell’s Investor Relations team was among the first to use SlideShare.com, a presentation-sharing site, to present quarterly earnings. And their 24/7 “Social Media Command Center” ensures that customer complaints are heard and addressed regardless of the channel.

Final note: Acknowledging the wisdom of James Joyce when he said, “A man’s errors are his portals of discovery,” I do hope you’ll make a few mistakes of your own and share your discoveries with us all.  (This article first appeared on MediaPost.com).

 


Social Media Isn’t Easy

Experience is a painful teacher so why not learn from the mistakes of others and save yourself the trouble? Attending lots of conferences, I’m occasionally struck by all the lessons, good and bad, that are readily available. At one such conference recently a marketing exec presented a case so flawed I was in awe, pushing me to chronicle the 10 most common social media mistakes in glorious detail. Here are the first five:

#1 Thinking of social as just another media channel
They say that to a hammer, everything looks like a nail. To a marketer, every new opportunity looks like yet another place to hammer home their message. Donnie Deutsch, the former mad man, just last year at the 140 Characters Conference compared the arrival of social with the arrival of cable TV in the 1980s, calling it “just another media channel.” Having sold his agency to Interpublic in 2000 for $275mm and enriched himself further as a talk show host, Donnie can be forgiven this seemingly innocuous oversight. But daily marketing practitioners can’t afford to do so.

Media channels like TV, cable or otherwise, deliver a monologue, in which advertisers shout with the hope of being heard; promise with the hope of getting a sale. Social media is a conversation in which the brand must first listen and then offer something of value in order to gain an invitation to interact. Social media is not about selling, it’s about providing a service that engages, enlightens or entertains. It’s about listening really carefully and responding with equal regard.

American Express listened for six months before they set up their first Twitter account. Through a careful listening campaign Avaya was able to beat its competitors to the punch, identifying leads and new product opportunities. Virgin Media’s London-based “tweam,” turned a complaining Stephen Fry into a staunch advocate, helping this the cable company to engage with Fry’s +1.5 million followers. All three of these examples stress the importance of listening, something that traditional media efforts did not require or allow.

#2 Leaving social media to the “twinterns”
Because social media is still in its infancy and second nature to Millennials, the tendency has been to put the social media reins in the hands of a person fresh out of school or the intern with the most friends on Facebook. One senior marketing exec told the author of Facebook for Dummies Paul Dunay that she was absolute thrilled to have hired a “twintern” to take care of her brand’s Twitter account. A startled Dunay reflected later on his blog, “When did it become okay to just give anyone off the street the keys to one of the most important assets you have … your Brand!”

The risks of this approach have become readily apparent. Nestle, a brand that has come under repeated attack by activist groups like Greenpeace, only made matters worse when junior staffers responded flippantly to negative posts on its Facebook Wall. More recently, a junior staffer at a Detroit-based social media agency lost his job and the Chrysler account for his agency, when his snide response about Detroit drivers when out on the Chrysler Twitter feed. There are many such stories and all smack of immaturity and inexperience.

Now don’t get me wrong, I have nothing against interns and in fact, they can play an invaluable and cost-effective role monitoring, reporting and even ideating responses. That said we would never rely on one to manage our own social media interactions any more than we would let them lead engagements with our clients. If you start to think of social media like your customer service activities, then you too will seek pros to lead the way.

#3 Ready, Fire, Aim
Perhaps because it’s so easy to set up a Facebook page, start a Twitter account and throw up a video on YouTube, many brands did just that, without much foresight. Many of these pages languish sadly like falling trees with no one there to listen. When a customer or prospect sees these pages, the message is unfortunately clear, here is a company that doesn’t have its act together. Such ill-planned approaches are a potent reminder that “hope is not a strategy.”

Like boxing, social media looks pretty simple to the untrained eye, but who among you would dare jump into the ring without a lot of preparation and better yet, a real plan of attack. In social media, preparation is essential to avoiding an accidental knockout. Brands must commit significant resources and, equally importantly, have a process in place for managing customer interactions, establishing an escalation policy when complaints arise.

In the past few months, a number of brands including Dell and Gatorade have made headlines by establishing a “command center” for their social media activities. Listening and responding with equal care, these brands have also established social media policies for employees and their customers, defining what each should expect from the other. These centers are staffed 24/7 and reflect a growing appreciation for the need to treat social media as a strategically guided weapon.

#4 Don’t Define Success
Consistent with the ready, fire, aim mentality often brought to social media, its not surprising that success is rarely defined at the beginning. With only 23% of companies having a strategic plan in place for social in 2010 (MarketingSherpa), many more were just jumping into the water, not knowing which way to swim or how far to go.

Ironically, defining success in social media isn’t all that hard especially when put into the context of the overall business goals. Boiling this down to basics, every business needs to do two things to survive, acquire customers and retain them. And typically the better you are at retaining customers the easier it is to acquire new ones. Well sure enough, social media can do both of these things in highly measurable ways. (These are not the only uses for social but these are the ones the c-suite cares about the most.)

Kinaxis, a Canada-based supply chain management company, has used a combination of blogging and community building to nearly triple web traffic and lead generation. U by Kotex has developed a highly engaged fan base on Facebook that in combination with provocative advertising that went viral on YouTube has helped them grow from 0% to 20% share of market.

#5 Isolate in one department
Because social media often starts as a sub-set of one department or another, there has been a bit of a battle for control at numerous companies. Many departments can make a compelling case for ownership, Marketing because they understand the voice of the brand, Customer Service because they are trained to interact with customers and Corporate Communications because blogger and influencer outreach feels a lot like PR.

These battles are unfortunate and have often left social isolated and restrained by the perspective of just one department. However, as Bonin Bough of PepsiCo explained at a recent BDI conference, “its not about ownership, its about leadership.”  To be successful, social media initiatives need to be lead by an individual or team of individuals that can rise above a particular department and then tap into all the requisite disciplines including IT.

Twelpforce, the groundbreaking Twitter-based help desk from BestBuy, provides a great example of how these cross-disciplined programs can come into being. Originated in the marketing department, the Twelpforce application was coded by an internal IT team. The Twelpforce itself is made up of 2600 BestBuy employees from all over the company including customer service. In its first year, the Twelpforce responded to over 42,000 customer inquiries at a remarkably low cost per interaction and remarkably high c-sat rate.

This article ran first on MediaPost.com.  Stay tuned for part 2.