Category: Strategy

It’s time to talk about Blockchain

Presentation1One of my big ‘things’ about the social digital revolution is the fact that it is changing the nature of trust, shifting it from institutions into (often community-based) transparent processes. This has enormous implications, given the importance of trust in creating both brands and societies. If you look at platforms such as Wikipedia, Ebay, Uber, Trip Advisor, Amazon, Airbnb and even Google (search) itself their operation and success all have roots in forms of community-based processes.

Therefore, when I first came across Blockchain a couple of years ago I realised it had the potential to change the world – simply because Blockchain is all about process-based trust. In fact it has been labelled a trust engine. I therefore knew it was going to be important, before I knew how it was going to be important.

In the intervening time I haven’t been able to delve sufficiently deeply into the technology (mostly because I don’t really understand it) to get a handle on how Blockchain is going to change the World. Neither, I suspect, had many others. However, this is now changing, and smart people are starting to work-out the Blockchain applications.

Which brings me to Jeremy Epstein. My faith in the significance of Blockchain was re-inforced when I heard that Jeremy had moved from Sprinklr, one of my favourite marketing technology platfroms, to set up Never Stop Marketing – a consultancy focused on helping busnesses understand Blockchain. Jeremy is someone who has always been at the leading edge of digital change and who ‘gets it’ in terms of understanding its core principles. As a rule, if jeremy is on to it, it is worth getting on to. He has just released an e-book “The CMO Primer for the Blockchain World“. I have read this once and need to read it at least two more times. It contains some reassuring endorsements of the Blockchain concept from some leading marketers, but the most important bit is the section in the middle, where Jeremy starts to map-out potential practical applications of Blockchains in marketing, backed up by many linked examples.

I would thoroughly recommend this e-book as mandatory summer reading. I am going to use it as my staring point for, finally, getting my head around Blockchain.

Deception, Deflection and Disruption: the new rules of political communication

This is a post I have been meaning to write for at least 18 months. When first conceived it was in part a prediction. Recent events have conspired to make that prediction a reality, which has encouraged me to get it out there. It is post about the three Ds of modern political communication: Deception, Deflection and Disruption.

Deception

It all started with Deception. Many people have accused UK Prime Minister Tony Blair of being a liar. In truth, he was far too clever to deserve this label. Calling Tony Blair a liar is a bit like calling a successful poker player a liar. What Tony Blair and a successful poker player have in common is that the practice of deceit is fundamental to their success. Indeed the whole New Labour project was built upon deception. There was, of course, the grand deception designed to create support or justification for the Iraq war but at a more prosaic level there was the deception that New Labour was a party that was going to deliver on any of its promises, when in fact all they were doing was kicking the can down the road – just another variant of TINA (There Is No Alternative) politics. Labour confused being a party of opposition with being a party in opposition, a problem which exists to this day – but that is another story.

The Conservative-lead government of David Cameron learned a lot from New Labour. Continue reading

A focus for marketing in 2017

I notice that I last posted in June last year and that this wasn’t even a proper post, just a reference to a speech I had given in Istanbul that was conveniently YouTubed. In my defence, I have been busy doing other things such as building a house and involved in an interesting experiment in online education. Interestingly, my blog views haven’t decreased dramatically over that time, which I think says something instuctive about the whole content thing. It suggests that content is not a volume game, where frequency or even timing of posting is key, rather it suggests that content is a relevance game that is not driven by the act of publication, but driven by the act of search. This is why content socialisation is far more important that content publication. As I have said before, spend only 10 per cent (or less) of your content budget actually producing content and the remaining 90 per cent on socialising that content. Socialised content is the gift that carries on giving. Once it is out there it will carry on working for you without you having to do anything else. And this socialisation has to start with an understanding of what content (information) people actually want from you – identifying the questions for which your brand is the answer. Remember, the social digital space is not a distribution space where reach and frequency are the objectives, it is a connection space where the objectives are defined by behaviour identification and response.

Here endeth the predictable critique of content strategies.

Given that it is still January I believe I have permission to resume posting with a 2017 prediction piece. I was prompted to do this by reading Ashley Freidlin’s extremely comprehensive post on marketing and digital trends for 2017. This is essentially a review of the landscape and it its sheer scale is almost guaranteed to strike terror into the heart of every marketing director. Perhaps because of this, Ashley’s starts with saying that the guiding star for 2017 should be focus, so in that spirit I shall attempt to provide some basis for focus. Continue reading

Success in the digital future: talk at Digital Age Summit 2016

IMG_6708A few weeks ago I was in Istanbul speaking at the Digital Age Summit. A video of my presentation is now on YouTube and I have finally got around to posting it.

See also below the summary slide, which pretty much covers what I said. Some other soundbites include, why a mobile is not a channel but is a behaviour detection device, why consumers don’t want content, why marketing has been in the Ice Age and why the algorithm is the most powerful instrument of social control invented since the sword.

Digital Age 2016 minus video

Also – check out the presentation by Matt Wallaert from Microsoft for a new way of thinking about your business / market and competition.

I especially like the idea of creating value by reducing levels of engagement, given the senseless chase for ‘engagement’ in social media. It correspond to my idea of a brand as a waiter – just tell me about the specials, take my order, bring my drinks but at all other times just stay out of my life – don’t think that because you are a waiter you have a right to ‘join my conversation’. (I don’t think I got into this in my presentation – there was probably already too much in there).

Marketing technology: it is confusing but it is going to be big

This post is a marker.  It is post-it note that says “remember to watch this space and try and get your head around it because this is going to be big”.  It also is an excuse to log what I think is a very useful, if slightly mind-bending post by Scott Brinker.

My current mantra for marketing folk is that the future of brands involves getting your head around three things: the shift from the audience to the individual, the fact that community is becoming the new media, and the emergence of the world of the algorithm (i.e. Big Data).  I also continually bang-on about social media being a process, and of course, one of the things we use technology to do is management of process.

To a large extent, eveything that Scott is talking about in his post plays against these  issues.  To manage relationships with individuals at any sort of scale will require a process supported by technology.  Scott also talks about tag management – which (as I have already written about) will become the foundational process for the operation of communities.  Likewise, it is clear that the algorithm will become the tool that makes sense of the data that could be seen to live within the marketing cloud.  And, as Scott points out, Amazon is already starting to offer algorithmic products to do just that.

Scott also observes that things are currently very complicated and confused.  Or, as I flagged in my previous post, this stuff is ‘legitimately difficult’.  I definitely do no know enough about it – but from what I can see, I think I know enough to say that this is the future.  Technology is going to play a huge role in the management of the relationship between brands and consumers – because technology facilitates process, and this future relationship is going to be defined by process (behaviour identification and response) not by channel and message.

I think I can also predict that the key to really embracing this future is to shed yourself of the snakeskin of the past.  Big data is totally different to small data, to the extent that you can’t build your way to a big data future from a small data starting point or mindset.  Likewise, current marketing technology deals with stuff like CRM but the only way you will be able to deal with the new marketing technology is to free yourself from a CRM mindset (and possibly your CRM people).  If you look at this new stuff through the lens of the old stuff, you will probably fail to see or understand its potential.

I can Get (now) Satisfaction

GSIn view of my previous post about the three key tools of social media (Sprinklr, WordPress and Get Satisfaction), you can only imagine my own sense of satisfaction – indeed smugness – to see that Sprinklr has just announced it has bought Get Satisfaction.

Clearly there are sensible people, with money, out there who think as I do – which is always a reassuring thought.

The interesting thing about Get Satisfaction is that when it first launched it was a customer, rather than a corporate, tool. It was designed to allow customers or consumers to create their own community around the brands they wanted to talk to, or report upon. It was a bit like Trip Advisor – but for any organisation. It was a community owned by the customer to which brands were then invited to join. Indeed for those brands that didn’t join there was a wonderful one-liner “No-one from company X has sponsored, endorsed or joined the conversation yet” which I thought was a great metaphor for the state of social media at the time (notice the usage of the word ‘yet’). I used this in all of my presentations  (see pictures) and I was convinced that this marked the dawn of a new era where control of corporate reputation would shift to individual customers operating within structured or semi-structured online communities.tomb

Things haven’t worked out quite like that (yet). Get Satisfaction itself shifted to become a corporate-based product, probably because it’s management decided (sensibly as it turned out) to commercialise first and then build a corporate user base rather than build a big consumer user base and then try to work-out how to commercialise it. However, I think the fact that it started out as a tool for the customer has given it an edge as a customer service tool for brands. It has a recognition that all things start with the customer (rather than the brand) coded into its DNA.

As a brand, if you use a tool like Get Satisfaction you cannot fail but become more connected, in real-time, with your customers. It’s four imperatives – ask a question, report a problem, share an idea, give praise – represent all the things that customers want to base their relationships with brands upon. Creating a customer service community may not be easy because doing it effectively means building a new process which will have tentacles that reach out much further into your business that the traditional marketing, sales and communication processes ever did. It will certainly be harder than simply pumping industrial volumes of content out into the social void. However, it is worth remembering that the easy things to do are not usually the best things to do.

I hope that this acquisition marks an end of the phoney-war of social media – and also an acquisition that cements Sprinklr’s position as the leader in ‘enterpise social media solutions’ (I hate that phrase but you know what I mean). I hope it marks at least the begining of the end of the phase where brands thought they could simply put a ‘social patch’ onto their traditional, audience and content based approaches and then carry on as normal. I hope this marks a growing realisation that brands have to adopt a fundamentally different approach to creating relationships with customers in the social digital space, the world of the individual rather than the world of the audience. A world where brands understand how to harness the power of connection rather than distribution. A world where (as I have said in my ebook) you are successful by not speaking to 97 per cent of your audience – just the three per cent (frequently much less) who, at any given time, want to talk to you.

Or, as I have also said, there are only ten customers critical to your business and social media can help you find them. The only catch being these are the people critical to your business right now, and in 10 minutes time it could be another ten people. I.e. these are the people who, right now, want to ask a question, report a problem, share an idea or give praise.

 

Social media: the three (wise) tools

I am often asked about which social media tools to use. My stock answer is to say “the answer is never a tool, social media is not a tool-based challenge.” I then invoke the analogy of the carpenter and the chisel, i.e. a carpenter will probably use a chisel, but having a chisel won’t make you a carpenter – carpentry, like social media, is a process-based challenge, not a tool-based challenge.

3 toolsHowever, I am prepared to make an exception in three cases. The tools I recommend are linked to the three pillars of any successful social media strategy: conversation, content (information management) and community. The reason I recommend them is that none can be misunderstood as a channel (like Twitter, Facebook and Instagram et al can) and all involve construction of a process in order to use them effectively.

Netvibes as a path to Sprinklr

The first addresses conversation (i.e. listening and responding to the things people are saying about your brand which is the only conversation brands have permission to join). The tool I initially point people to is Netvibes. Netvibes is still the only decent free tool that you can use to establish a comprehensive monitoring dashboard. When I show people a Netvibes dashboard their response is almost always “wow – I want one of those”. Hootsuite does this a bit, but Hootsuite is more set up to publish outgoing than it is to monitor incoming. However, if you are looking for an ‘enterprise solution’ – and if your organisation is of any sort of size you will need to do this – the solution is Sprinklr. Sprinklr has now swallowed so many platforms and technologies you cannot really call it a tool, but the reason I recommend it (them) is that of all the major platforms players they are the only one that fundamentally ‘gets’ the fact that social media is a process management challenge rooted in behaviour identification and response. I note they have just announced another new service, the ‘Customer Experience Cloud’. Now I am a bit sceptical about the concept of customer experiences, but this is when a generic (sometimes called consistent) customer experience is broadcast down this thing called an omni-channel. However, the Sprinklr approach seems to be more about how you manage your response to individual consumers – i.e. giving your customers the individual experience they want, rather than forcing onto them an experience the brand wants them all to have. It could also help in the important business of identifying and recruiting superfans (see point 4 in this post).

WordPress (social hub)

The second tool is WordPress. Now I know WordPress has finally become all conquering (although I can remember the days when you had to torture digital agencies to get them to use it), but the more specific usage of WordPress I recommend is the creation of a content / social hub. Without something like this a brand cannot have a real-time voice: it cannot provide answers to questions or link together its usage of any of the other tools such as YouTube or Twitter. A website can explain what you do. But a social hub can demonstrate how you are doing it. It will also help you target Google spaces (i.e. the places where people are asking the question for which your brand provides the answer).

Get Satisfaction

I really enjoy recommending the third tool  – because no-one has heard of it. This tool is Get Satisfaction. Get Satisfaction is an out-of-the-box customer service community. I believe that within a few years every single organisation will have to have one of these in place in the same way that it became expected that every organisation needed a website. In fact I think websites will basically morph into one of these anyway. Why? Well, as I highlighted in this post on Edelman’s recent Brandshare report – consumers are telling brands they want them to do eight things – and the four most important of these can easily be addressed with an online customer service community.

I have looked back over my presentations and noticed that I first started talking about Get Satisfaction at a conference in Budapest in 2008. I keep waiting for it to become ‘big’ and remain disappointed, in fact appalled, at the extent to which so few ‘social media experts’ have latched onto it – but I think this just reflects the extent to which we all still see social media as a distribution challenge, not a connection challenge. Community is all about connection, in fact I think community will become the new media. Wherever we look we see relationships between brands and consumers being disrupted by the intervention of communities (Trip Advisor, Airbnb, Wikipedia – even Google itself). Brands need to understand how to operate within these new community spaces, but also how to create a community space for their brand. People would much rather talk to a brand within its own community space, rather than have a brand invade their own spaces in networks such as Facebook. Facebook (as it is spending advertising dollars saying) is for friendship – and you will never be friends with a brand.

We are starting to see what communities such as Yammer, Jive or Lithium can do in creating more efficient relationships between people within your business. Get Satisfaction can do the same for creating more efficient relationships with your consumers or customers. Better still, if you create an online customer service community, the process you will have to build around it will force you to become more effective in the way in which you operate the rest of your social media strategy. This community will become the hub which defines the rest of your activity.

So – let us kill of the age of brandfill (content) and bring on the age of community.

Must read: Haydn Shaughnessy on the new ‘creative’ economy

FireShot Screen Capture #212 - 'Shift_ A User's Guide to the New Economy_ Haydn Shaughnessy_ 9781941420034_ Amazon_com_ Books' - www_amazon_com_gp_product_1941420036_ref=as_li_tl_ie=UTF8&camp=1789&creative=9325&creat“A decade ago we were wondering what the Creative Economy might actually mean. Now we can see it: it takes the form of delegation of responsibility to individuals who have to find ways to cooperate and ways to innovate while taking risks with their time and income.”  So says Haydn Shaughnessy in a fascinating interview with Forbes’ Steve Denning.

It is an article that raises a host of hugely important issues, so many that it is difficult to know which to highlight or how to summarise them.  For a start it recognises that what is going here is not simply about new technolgies it is about a change to societies and social relationships – especially the relationship between institutions and individuals.

It also makes the critical point that, despite what we all like to think about the ’empowerement’ of individuals in this new creative economy, that is not what is really going on.  Businesses are essentially outsourcing risk and while this is efficient from the perspective of the individual businesses concerned, it is generates much greater costs and inefficiencies for the wider economy and society as a whole.  In a nutshell, if you can outsource innovation to a ‘creative community’ of  10,000 individuals, you can then just choose the one that works best and discard the 9,999 others.  Great for you, and the people behind the one you picked, but not so good for the 9,999.  Not only does this create a society of chronic insecurity, it is also hugely wasteful of effort.

Shaughnessy also makes the point that while this may work in the short-term, if business as a whole is to rely on this approach, it needs to create greater certainty of supply.  In his words “The start-up culture is self-congratulatory. They celebrate several hundred Fintech start-ups in London. But in reality, we need thousands or even tens of thousands of start-ups. To get to 300 successful firms, you need 10,000 start-ups. We are not addressing that kind of issue. What it means is that we also need to prepare people for a different journey through life.”

I was also pleased that Shaugnessy deals with the issue of scale and the extent to which scale no longer confers an advantage (something I have written about before).  He highlights the ability of many new companies to grow huge revenues and operate globally with very few employees often as a result of the fact that they are ‘born social’ and have a social purpose as a facilitator.  In the process organisations such as WordPress and TED they can create an intellectual asset base of goodwill that outstrips the ‘bought’ goodwill inherent in models of many supposedly successful ‘brands’ such as Coca Cola.

Anyway – read the interview (and the associated book).  It is one of the most important things I have read in a very long time because it doesn’t just paint a picture of what is going on, it explains why it is happening and what we need to do about it.

 

Organic social media is dead: but was it ever alive?

It appears to have become an article of faith that organic social media reach is dead. The reason for this, so the idea goes, is that the social space has become so cluttered that achieving cut-through is now too difficult. From this it proceeds that the way forward is to look at paid for solutions, or at least to ensure that any organic activity has paid for boosters attached.

My question though is this. Was organic social media reach ever alive? OK there may have been some examples where brands have managed to get themselves in front of a large number of people in the social digital space, but I would contend that these were, and will remain, the exception. I don’t think the social media space has ever delivered reach on a consistent basis and all that has changed is that we are waking up to that fact. For example engagement levels, on average, with brand Facebook pages have always been abysmally low. This is not a recent phenomenon, it is simply that we haven’t wished to believe this.

It has nothing to do with the fact that the space has now filled up, or, as has been suggested, we are arriving at an impending content shock. The trouble with this type of thinking is this leads to the conclusion that we simply have to make our content more engaging / competitive in order to achieve sufficient reach when, in fact, what we should be doing is abandoning the idea of reach altogether. Continue reading

What next after content marketing?

(Way) back in 2008 I wrote a rather lengthy paper on the theory of social media.  Interestingly, it has become the blogging equivalent of Pink Floyd’s Dark Side of the Moon in that it has hung around in my list of current popular posts ever since.  Within this I suggested that the key assets for operating in the social media space were content, conversation and community.  I also proposed that we were likely to move through these in sequence: content being the easiest thing to deal with, followed by conversation and ending up with community.

Well – we certainly have embraced the content thing.  So, if my theory holds – could the next big thing be conversation marketing?

Presentation1So I turned to Google Trends.  What this showed (see blue line in the diagram above) is the extent to which content marketing has exploded over the last two years (albeit four years after I proposed it in my paper).   Interestingly, this is plotted against Facebook marketing (green), which we can see peaked as a subject of interest in late 2011 and Facebook engagement (purple) which peaked a little later.  We now talk more about content marketing than we do about Facebook engagement (at last).

As an aside, the content marketing that brands are doing, doesn’t really correspond to the type of content marketing I envisaged.  I was proposing an approach to content that was about creating a network of information threads within a brand’s relevant digital space, not simply ramming the channels with stuff.  However, I think we will come around to my way of thinking in time – possibly as brands become more conversational, and thus more in tune with what content (information) consumers want, as distinct from the content brands want them to have.

However, Google Trends didn’t really turn up any evidence to suggest that conversation or community might be the next things.  In its (or my) defence, this is probably because we haven’t yet created ‘the word’ for what conversation or community based marketing might be.  Key to the birth of any new thing is christening it with a name.  So I guess we have to look elsewhere for evidence.  Here I would return to the post I wrote a few week ago about Edleman’s Brandshare Report.  Here we see very clear evidence that consumers want to have conversations with brands, albeit conversations that start with the issues consumers want a response to, rather than the issues brands might want to have conversations about.

Content marketing, even when you do it right, is actually very easy.  It doesn’t involve changing the model of marketing or actually involving the consumer too much.  That is why I suggested content would be the first big thing to arrive (once brands had got over their initial obsession with Facebook and Twitter).  Conversation marketing is harder because it involves seeding an element of control, if only in terms of letting the consumer decide what conversations they want to have.  It involves changing the configuration of marketing resources with a shift towards investment in people and processes, rather than agencies and media.  It also involves recognising that you can’t have a conversation with everyone all at once – and thus you only create positive ROI by extracting much higher value from a much more limited ‘reach’ (subject of the e-book I wrote last year).  In fact it involves abandoning the idea of reach as a sensible metric altogether. It also corresponds to what I am calling the concept of ‘Hot Marketing’ – the creation of genuinely valuable (hot) relationships, albeit much fewer of them at any one moment in time than when were creating (cold) relationships with entire audiences.

This additional level of difficulty is the reason I think it is going to be a couple of years before brands really get to the place where they understand how to create value from conversation.  I also think brands will need to get over the current obsession with ‘brandfill’ content strategies before they will have the operational space to move onwards.  I guess this puts the concept of community marketing back to at least five years’ out.  This is a shame, especially since I have spent most of this year banging on about forms of community!  However, effective communities involve creating a much greater level of shared interest and collaboration between brands and consumers than most marketing folk are prepared to countenance.  In fact, we will probably only get to the community phase by reinventing the concept of marketing as we know it.

Looking back at my 2008 piece, I am still pretty happy with its core conclusions.  I would stand by everything I said within it and I think what I predicted is basically panning out – although perhaps not as quickly as I thought it might.  But there again, I am aware that one of the features of any revolution is that one tends to overestimate its impact in the short term, but underestimate its impact in the long term.