On a Mission
A day with Mike Harris
Stand for Something
Building trusted brands
The Upside of the Downturn
Ten Management Strategies
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On a MissionTuesday 15th June 2010 I’ve just spent the day with Mike Harris, one of the few people ever to grow three multi-billion pound businesses from scratch. Mike transformed the world of banking as the founding CEO of Egg and Firstdirect. His current business, Garlik, has Tim Berners Lee (The Inventor of the World Wide Web) on the board. The first question Mike asked me was probably the most challenging I’ve ever faced: “Win or lose, what is the big game you would love to play in the next 3-5 years?” He then told me that from his experience, whilst every financial business does not necessarily have to be an iconic brand, to be successful, it does have to behave like one. At the heart of an iconic brand is a promise of a valued experience to all who touch the organisation, a promise that must be kept consistently, day after day. For example, Mike said that at Firstdirect, he and his team built the brand around a promise of “heroic customer service that left people feeling totally taken care of”. The brand experience was the heart of his company, the driving force behind its culture. He leant over to me and told me that he feels that Strand Financial’s business is all about leaving people feeling ‘buzzed’ from the energy of ideas. This, over the next few hours, translated into our mission which doubles as our elevator pitch: "Strand Financial is a specialist branding and communications consultancy that works with financial services organisations. We ignite our clients' brands, illuminating their points of difference, enabling their messages to spread like wildfire and leaving them, their customers and their partners feeling inspired". The point is that you don’t need to be Virgin or Apple to create a brand promise, which shapes every action you take and gets you out of bed every morning fired up. Your brand promise can include the relentless search for new ideas to meet appropriate (and currently unmet) needs and wants of customers. Essentially, as Mike says, “it’s about creating a brand experience and a culture that is addictive, infectious and, ultimately, irresistible”. Your mission must also be authentic. It's an overused word but in the post credit crunch world and in a world of social networks where all of an organisations' actions and motivations are laid bare, only those companies who have a strong customer focused mission and mean it will achieve trust, confidence and re-kindle ambition. Recent research shows that there is still much to be done. 72% of customers were unable to match more than 15% of financial services organisations by their brand values or mission statements. This month, I’m looking forward to taking on the brand differentiation challenge at Communicate Magazine’s financial marketing and communications conference. Along with Charlie Stott, senior strategist, Wolff Olins and Ian Ewart, head of marketing, Barclays Wealth, I’m tackling the question as to how individual financial services organisations can stand out from the crowd and create their own space. You could say I’m on a mission! Stand for SomethingSunday 13th June 2010 I read a great blog by Seth Godin that echoes what I have been saying for a long time, that you need to stand for something and have a cause. You also need to have a clear view as to what you don’t stand for. Here is what Seth has to say: “People and brands and organisations that stand for something benefit as a result. Standing for something helps you build trust, makes it easier to manage expectations and aids in daily decision making.” Failure to do so, means that you and your thoughts are blowing with the wind, trying to please everyone all the time. As I wrote yesterday, this is a time for leadership. Seth riffs: “You can't be the low-price, high-value, wide-selection, convenient, green, all-in-one corner market. Sorry. To really stand for something, you must make difficult decisions, mostly about what you don't do. We don't ship products like that, we don't stand for employees like that, we don't fix problems like that.” You need to stand for something, have values and beliefs that really matter to you and to your customers and deliver your promises consistently. Stand for something, live your brand every day. The Upside of the DownturnTuesday 11th May 2010 The Surrey snows have forced me to get some serious reading done. This weekend I read a fascinating business book with a fairly uncompromising title that promised much and to an extent at least delivered it: "The Upside of the Downturn: Ten Management Strategies to Prevail in the Recession and Thrive in the Aftermath."
Its premise is that some businesses - and some people - will emerge from this downturn stronger and more dominant than when it started. Others will weaken and fade. It all depends on critical choices they make right now. Geoff Colvin, one of America's most respected business journalists, says even the deepest recession has an upside. The best managers know conventional thinking won't help them win in tough times. They're taking smart, practical steps that will not only keep them strong, but will also distance them from the pack for years to come. The dozens of top-performing leaders Colvin interviewed reject the common view that slashing costs and firing employees are all that matter. They see the recession as a rich opportunity to reinvent their organisations and lay the groundwork for future growth. Colvin's ten solidly grounded strategies are designed to increase competitiveness and build long-term value. Here are some highlights: * Reset priorities. Easy to say, harder to do. Pursuing the lofty goals set in good times can be disastrous now. * Reevaluate people and steal some good ones. Mass layoffs are a tempting way to cut costs, but great companies often find smarter alternatives. And if your competitors are dumb enough to fire their best people, grab them. * Keep investing in the core. Trim the fat from your budgets but not the muscle. The best companies actually increase some spending in a recession, funding the areas that make them unique and valuable. * Don't rush to cut prices. Many companies assume they must - yet the long-term damage often outweighs the short-term boost. Colvin shows how these strategies work, using examples of major companies that have applied them with inspiring results. There are obviously many more strategies that are being adopted with real success right now. We'd be really interested to hear more about your success stories as well as any great business books that you've read lately that have inspired you or talk to your particular situation. 'Differentiate' Your Differentiation StrategyThursday 08th April 2010 To achieve long-term success in today's customer-driven marketplace, you first need to differentiate your differentiation strategies!
Product differentiation is increasingly difficult within a tightly knit financial sector, and even when done legitimately, is not always beneficial to the brand. Much of the focus within the banking sector, for example, is on differentiation at product level in order to drive short-term tactical initiatives. This has, in some notable instances, led to poor decision-making, compromising on financial and operational risk to meet sales targets and shareholder expectation. Only by adopting and implementing brand level differentiation can companies create their own space. In this way, you:
Remain authentic and true to their core essence Consistently deliver on their Unique Value Proposition (UVP) Deliver superior customer service thanks to passionate brand ambassadors Engage with customers on a deeply emotional level Key Marketing Questions for 2010Thursday 07th January 2010 There’s no doubt that 2010 will throw up major new challenges for financial marketers. How we equip ourselves to deal with these in a recession is entirely down to the the questions we ask of ourselves and our organisations. Over the week, I will endeavour to ask the most important ones. Find the answers and you will be well on the way to taking these challenges head on. Authenticity – Are you keeping your message real and staying true to the core essence of your brand?
Personality – Have you established brand characteristics that resonate at a human level – e.g. trust, fun, dependability, understanding and caring?
Frugality – Is this really the best time to show overt corporate wealth or waste at a time when many will be finding life more challenging? Creativity – How can your team show greater use of imagination and brand innovation, without impacting on underwriting risk? Velocity – What can you do to improve speed of delivery of messages and products to market, harnessing online reach and metrics? Social Media Index AnnouncedWednesday 06th January 2010 Vitrue’s Social Media Index (SMI) published on Mashable assigns brands and products a score based on overall buzz from status updates, videos, photos and blog posts. The company has tallied its results for 2009 and released its top 100 social brands based on index scoring, with last year’s winner — the iPhone — reigning supreme once again. Alarmingly, there is only one financial brand (Visa #87) featured within the top 100, indicating that financial services firms need to redouble their social media plans and start to engage with more heavyweight activity. Whilst listening is a prerequisite first step in both banking and social media engagement, there is only so much you can do before you generate some regular, relevant and meaningful dialogue! Although the index focuses on consumer mentions and reactions — as opposed to indexing brand engagement via social media — the list is still a veritable powerhouse of information in terms of consumer buzz and word-of-mouth recommendations. So who tops the list? iPhone, Disney, CNN, MTV, NBA, iTunes, Wii, Apple, Xbox and Nike rounded out the top 10 in 2009, respectively. We also learn from Vitrue’s blog post on the list that Adidas was the biggest gainer, jumping up from the number 85 slot in 2008 to take over the number 14 spot in 2009. NBA, Nike, MLB, Nissan, Victoria’s Secret, HP and KFC also showed significant improvement from the previous year. Some other interesting findings from Vitrue include: - Game consoles dominate the top of the list: (Wii #7, Xbox#9, PlayStation #13, Nintendo #21) - Luxury brands appear on the list this year with good representation: (Gucci #27, Louis Vuitton #81, Prada #88 and Burberry #94) - Media brands make up 8 percent of list: (CNN #3, MTV #4, ESPN #23, CBS #32, ABC #33, Turner #36, Fox News #56, NBC #68) This perhaps illustrates our socialisation of their content. Many thanks to Paul Hinds, MD at Seven Advertising, once again for this great spot. Here is the list in detail: Vitrue’s Top 100 social brands for 2009: 1. iPhone 2. Disney 3. CNN 4. MTV 5. NBA 6. iTunes 7. Wii 8. Apple 9. Xbox 10. Nike 11. Starbucks 12. NFL 13. PlayStation 14. Adidas 15. BlackBerry 16. Sony 17. Mercedes 18. Microsoft 19. Samsung 20. BMW 21. Nintendo 22. Best Buy 23. ESPN 24. Ford 25. Honda 26. Ferrari 27. Gucci 28. Nokia 29. Major League Baseball 30. Dell 31. Coca-Cola 32. CBS 33. ABC 34. iPod 35. Mac 36. Turner 37. Nissan 38. Toyota 39. eBay 40. Amazon 41. Victoria’s Secret 42. Nutella 43. NASCAR 44. Disneyland 45. Audi 46. NHL 47. Red Bull 48. Verizon 49. Intel 50. Subway 51. Hewlett-Packard 52. Puma 53. Kia 54. Fox News 55. Porsche 56. Jeep 57. Dodge 58. Pandora 59. Walmart 60. Zappos 61. Suzuki 62. McDonald’s 63. Krystal 64. T-Mobile 65. Skittles 66. KFC 67. Volkswagen 68. NBC 69. Sprint 70. Pixar 71. Motorola 72. IKEA 73. Pepsi 74. Cisco 75. REI 76. LG 77. AT&T 78. Converse 79. The Gap 80. Chevrolet 81. Luis Vuitton 82. Toys”R”Us 83. H&M 84. Philips 85. General Motors 86. Pringles 87. Visa 88. Prada 89. Panasonic 90. IBM 91. VH1 92. Hulu 93. Oracle 94. Burberry 95. SEGA 96. Sears 97. Avon 98. Jet Blue 99. Lacoste 100. Comcast Tiger Costs Shareholders Billions?Tuesday 05th January 2010 UC Davis Assistant Professor Victor Stango has studied stock market tendencies, stock value and the timeline of Tiger's accident, concluding that significant shareholder losses resulted from the ensuing saga.
I have my doubts as to the plausibility of drawing a causal relationship between the Tiger Woods scandal and fluctuations in share price. However, I have read the account from Christopher R. Knittel and Victor Stango and here is the abstract which I hope you will find of interest. We estimate that in the days beginning with Tiger Woods’ recent car accident and ending with his announced “indefinite leave” from golf, shareholders of companies that Mr. Woods endorses lost $5-12 billion in wealth. We measure the losses relative to both the entire stock market and a set of competitor firms. Because most of the firms that Mr. Woods endorses are either large or owned by large parent companies, the losses are extremely widespread. Mr. Woods’ top five sponsors (Accenture, Nike, Gillette, Electronic Arts and Gatorade) lost 2-3 percent of their aggregate market value after the accident, and his core sports-related sponsors EA, Nike and PepsiCo (Gatorade) lost over four percent. The pace of losses slowed by December 11, the date on which Mr. Woods announced his leave from golf. The report can be read at http://faculty.gsm.ucdavis.edu/~vstango/tiger004.pdf Whatever the losses incurred or not, give a thought to Accenture – the firm has had to scrap its entire global marketing strategy and start from scratch. What’s more, Accenture’s total Tiger-related marketing spend is vastly greater than the $20 million a year it’s paying Tiger personally. Who says all publicity is good publicity? When Brands “Go Dark”Monday 04th January 2010 It can be argued that marketing in a downturn is an “opportunity to gain market share at the expense of weaker businesses that choose, or are forced, to cut marketing expenditure,” observes Peter Field in the Autumn issue of Market Leader magazine. I echo this completely. I’ve seen the financial organisations who have cut their budgets struggle to compete in the upturn cycle last time around, while the players who maintained a market presence have since flourished. What I have found particularly interesting was the analysis of the extensive Millward Brown database on the impacts of budget cutting. The article concludes: “Its data shows a strong correlation between market share and the level of 'bonding’ – an aggregate measure of multiple brand–consumer relationship metrics. The clear implication being that if budget cutting results in a decline in ‘bonding’, then market share can be expected to decline. Crucially, further data demonstrates that two key constituent brand relationship metrics – brand usage and brand image – suffered considerably (13% and 6% declines respectively) when brands ‘went dark’ (i.e. ceased to spend on communications) for a period of six months or more. More broadly, 60% of brands ‘going dark’ see decline in at least one key relationship metric after just six months.” In the past year, I have seen evidence first-hand that suggests that brands that cut their budget relative to competitors are at greater risk of share loss. It’s time to shine out in the financial media blackout.
Boutique BoostThursday 31st December 2009 I predicted a long time ago (I'm talking 5 years) that the new wave of leadership and innovation in the financial marketing/media space would come from within the boutique segment. Maybe it needed a recession to make it happen. The larger agencies, highly acquisitive in good times, are now struggling to maintain revenues and retain talent. It has been mooted that some of these agencies are having to move their creative teams onto three day weeks. Others are losing major account business and have alarming concentrations of overdependency on these clients. Don’t get me wrong, this is not a smug “I told you so” piece, this is an inevitable balancing process which should lead to a new surge of accountable creativity. For it is accountability that has fuelled the boutique agency boom. We have seen numerous large agency pitches this year that promise brand building activity and enhancing the customer experience but which fail to consider the impact on revenues and profitability. After all, the goal no longer is simply enquiry, it's conversion - not just intent to purchase, but an actual purchase. Surprisingly, the former world of advertising is still a culture which pervades the large integrated marketing agencies of today. And agencies with that mindset simply don’t want their creativity constrained by accountability. Everything is on the line. Everything impacts on the bottom line - yours and ours. Your success is our success. The Loyalty FactorWednesday 30th December 2009 I have spent this week considering customer loyalty, since this is an area of marketing focus widely accepted by our clients as being critical to their success in 2010.
Values - Core attributes and beliefs that resonate with your clients Mobile marketing to be a growth area in 2010Tuesday 29th December 2009 The advertising market is continuing to see tremendous change and will thrive during 2010, according to PricewaterhouseCoopers. Eva Berg-Winters, digital media expert at the professional services firm, said mobile advertising in particular has come to the fore over the last couple of years. Innovations such as the iPhone have brought about this change, she suggested, with marketers noting the strong consumer take-up of such devices. Ms Berg-Winters commented: "Across the media industry, digitisation has transformed business models structurally and this will continue through 2010 and beyond. "Online advertising is one of the parts that we will see return strong growth." She said that as the recession recedes, online will continue to appeal to business users because of its measurability and accountability. "I think the UK will see a turnaround, but it will not be an easy turnaround, and online will play to its strengths in terms of being more convincing as something that people will be investing in," Ms Berg-Winters said. ZenithOptiMedia recently said that after the worst decline in ad expenditure in modern times, -10.2 per cent in 2009, the world's ad market has now stabilised and will grow 0.9 per cent in 2010. The firm predicted a steady improvement over the next three years, reaching normal five per cent growth in 2012. Designs on SurvivalMonday 28th December 2009 More than half (54 per cent) of UK businesses plan to use design to help them survive the economic downturn. The Design Council research, which covered 1,500 UK firms of all sizes and across all sectors, showed that design is rising up the business agenda. Over half (53 per cent) of the businesses surveyed said that design has become more critical in helping the firm achieve its business objectives over the past three years; and the same number agreed that design is integral to the whole country’s future economic performance. David Kester Design Council Chief Executive said: “Recession is no time to be battening down the hatches. It’s the moment when design becomes absolutely critical to survival, growth and success – and it’s great to see that there’s a growing recognition of this within the business community.”
This is certainly true of financial services marketing - our clients have seen time after time that design can and does make all the difference to defying the downturn. The ‘Client Needs’ Summary ListSunday 27th December 2009 Here are a few things that we believe that financial clients are looking for today:
Return on Investment Sector specialisation and knowledge
Access to senior directors A continuous relationship
Full service provision Online expertise
Sound strategic rationale Cut through creativity Integrated campaign delivery Cogent media planning Tough media buying Cost-effective production Menu-driven pricing transparency Project-driven approach Efficient planning and contact reporting Clients don’t ask for much do they! Consistent delivery to meet or exceed these stringent criteria will result in mutual success. What Do You Want Your Bank to Be?Wednesday 23rd December 2009 Is “suprising” or "unexpected" one of your organisation's key brand attributes?Survive or Thrive?Tuesday 22nd December 2009 We have all seen what happens when some mortgage lenders sought to differentiate on the basis of risk, with the ill-advised adventures into the sub-prime market. How they can forget the basic ability to pay as being an essential foundation of their underwriting criteria is quite beyond me. However, this is a financial marketing blog and I won't veer too much into underwriters' territory. CYOS Customer SurveyMonday 21st December 2009 I received an email this week asking me how Create Your Own Space principles can be applied to a customer survey in a practical sense, rather than being seen as purely an internal exercise to survey brand health.
Here are some thoughts below as to what this might look like:
To what extent do you agree or disagree with the statements below?
Strongly Agree (10 Points) Agree (5 Points) Disagree (0 Points) 1. XYZ’s vision is clearly communicated and understood. (state vision here) 2. XYZ’s brand promise is unique and distinctive: 3. We enjoy working with XYZ 4. We are very pleased with the service we receive from XYZ Please tick the following boxes that apply:
5. We prefer to interact with XYZ in the following ways: Face to Face Telephone Web Site Other (please state) 6. We would be happy to give a written testimonial for XYZ Yes No 7. We would be happy to recommend XYZ to a friend, colleague or business associate Yes No 8. Please tick all those attributes below that you feel apply to XYZ: (Relevant) Relevant Dependable Competitive Accurate Clear (Remarkable) Dynamic Unique Value Innovative Leader (Reputational)
Professional Respected Skilled Knowledgeable Expert (Real)
Helpful Responsive Enthusiastic Courteous Flexible (Add Five Top Unique Value Propositions) 9. Which of the following services will your organisation buy in the next 6 to 12 months? 10. Finally, please use the space below to add any comments you would like to make about the services XYZ provides (e.g. highlighting strengths, any changes you would like to see and areas for improvement.)
Every success with the audit - why not share what you've learned here?
Sean Connery forms Bond with Crédit AgricoleFriday 18th December 2009 Crédit Agricole has signed up former James Bond star Sean Connery to front an advertising campaign pushing the brand outside of France. The TV, print and online campaign looks to develop the brand in a number of countries across Europe, Asia and the Middle East. The activity looks at the need for 'responsible growth' in the economy, and its focus on ethical and ecological issues. Ads feature two new straplines: 'Back to common sense' and 'It's time for Green Banking'. The campaign airs from now to 19 December, with a second burst between 18 January and 14 March next year. Truly Del.icio.usThursday 17th December 2009 For those of you who may be unfamiliar with this tasty technological triumph, del.icio.us is a social bookmarking service that allows users to tag, save, manage and share web pages from a centralised source. Its value is that you can access your bookmarks from anywhere, they are not device-dependent in any way. Also, since I always have a number of writing projects on the go at any one time, it is a rapid way to collect and organise a whole stack of web-based source material, under topic area or the order in which I would like the information to appear. It gives me references to articles, facts, figures, stats and quotes that are all too easy to lose on the voyage of discovery that Google and my imagination take me. Anything that’s free, incredibly easy to sign up to, intuitive and immediately accessible gets my vote but this application is work-life changing. I’m finding new and surprising ways of using del.icio.us every day. Give it a try – maybe it will change the way you work too. The Impact of the Highly ImprobableWednesday 16th December 2009 I’ve just been reading a philosophy book (epistemology, philosophy of history & philosophy of science), called The Black Swan by Nassim Nicholas Taleb (published in 2007). The Black Swan theory refers to a large-impact, hard-to-predict, and rare event beyond the realm of normal expectations. This refers to events of large consequence and their dominant role in history. To the author the banking crisis was unavoidable: “Globalization creates interlocking fragility, while reducing volatility and giving the appearance of stability. In other words it creates devastating Black Swans. We have never lived before under the threat of a global collapse. Financial Institutions have been merging into a smaller number of very large banks. Almost all banks are interrelated. So the financial ecology is swelling into gigantic, incestuous, bureaucratic banks – when one fails, they all fall. The increased concentration among banks seems to have the effect of making financial crises less likely, but when they happen they are more global in scale and hit us very hard. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur ….I shiver at the thought.” I wonder what would have happened if the major banks differentiated on everything but risk! This is THE time for leadershipTuesday 15th December 2009 This is the time for leadership, not the time to shut up shop.John Quelch, writing on Harvard Business Online, agrees: “This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. Uncertain consumers need the reassurance of known brands…” It’s also a great time to talk to receptive media owners about next year’s campaign and beyond. It’s time to lock in key media relationships. It’s time to be fair, not to steal media deals. It’s time to show the market that you are confident and that your customers should feel so too.
This is the time to become the authority, to emerge as the leader in your market by virtue of the fact that you continue to Create Your Own Space.
Metro Bank prepares for launchMonday 14th December 2009 At best, the times facing the UK banking industry have been referred to by the National media as “interesting.” It is undeniably a very interesting time to contemplate launching the country's first new branch-based bank in more than a century. Anthony Thomson, chief executive of the Financial Services Forum, and Vernon Hill, founder of Commerce Bank, are intent on shaking up the market with Metro Bank.
The Financial Services Authority is understood to be close to granting approval that would pave the way for the bank to open two flagship branches in London, the first start-up bank in a century. Formed to offer convenient and extended opening times and even drive-through branches, Metro Bank disputes the perception that consumers rarely and reluctantly change current accounts. A report published last month by the Office of Fair Trading reveals that 6% of current accounts are switched each year and a further 24% of people would move if there was a "viable alternative". "There are potentially 3m dissatisfied bank customers in the UK," according to Metro Bank's marketing document. "These customers regard the high street banks as providing unsatisfactorily low levels of customer service and have expressed a desire to switch banks."High street banks have become remote from their customers as a result of an over-reliance on price, encouraging a switching mentality, and by commoditising their brands. Most UK banks appear to behave like utilities in that the only aspect that distinguishes one bank from another is their price tariff." I have long maintained this view and I sincerely hope that this bold move will put differentiation at the top of the banking industry’s agenda. Competition leads to innovation and stimulates a stronger industry. It is understood the bank, which is currently using the strapline “love your bank”, aims to distinguish itself from high-street rivals by opening longer and on weekends, as well as on the quality of its customer service. It has been previously reported that Metro aims to open 220 branches within a decade and is also considering launching fee-based current accounts in a bid to make sure its charges are “transparent”. Metro Bank is expected to open its doors early next year after reports the City watchdog is close to approving its launch. I should like to wish Anthony every success in this exciting venture and offer our full support. Back to Front ThinkingFriday 11th December 2009 I’ve had some fascinating meetings in the past two weeks focused on attracting sellers to online marketplaces and B2B portal sites. It is perfectly logical that every marketing pound has been spent focusing on communicating and promoting services to sellers to attract them to these communities, since that is what drives the revenue models. In times where there is some disequilibrium in the buyer / seller equation through purchaser scarcity, the real driver to growth may be found in disruptive thinking. What if budgetary spend on attracting sellers were to be reversed? What if we concentrated on getting the largest community of buyers for that marketplace. Create that community, that interest group, that tribe and it could be argued that vendors will queue round the block for that kind of access to a premium buyer marketplace. What else could you achieve by back to front marketing thinking? Spread the WordleThursday 10th December 2009 Wordle is a free word art application or ‘toy’ that creates tag clouds – a visual image that emphasises the most common words in a text by amplifying their size based on frequency. Wordle is being used in interesting ways to provide compelling summaries of web sites by industry, competitors’ home pages, blog posts, twitter feeds, email correspondence, surveys, news articles and more. The results are instant, often beautiful and always insightful. This evening, I will mainly be Wordleing! Create your own Wordle here (I warn you, its addictive): Words for the WebWednesday 09th December 2009 Web copywriting is a totally different skill to any other medium. If content is where it is at (which it is) then financial writers need to get more strategic and SEO savvy. Content generation is viewed increasingly by financial marketers as strategic - driving the process - not merely tactical. Today, there are several challenges that a web-centric copywriter has to meet head on (because most web designers won't!): Strategic positioning - reflecting the core brand essence Drilling for OilTuesday 08th December 2009 What made Jean Paul Getty wealthy was his tenacity and commitment to drill further and deeper than anyone else had ever done before him. Not content with discovering an oil seam, Getty just didn’t stop drilling around the area until he found a bigger seam and then another and another. Most entrepreneurs and their investors would have been more than content with 1 million barrels a year from a plot of land, Getty wasn’t and kept on until the equivalent plot yielded an astonishing 16 million barrels a year. Are you like J Paul Getty? Do you maximise every business opportunity? Do you ask all of the questions you could do? Would asking three times the number of questions, yield Many companies I know are content with “striking oil”, getting the initial new business win. They work hard, satisfy the client’s business requirement and move on. The issue is that had they asked more questions at the outset they would have discovered several other projects, perhaps even more lucrative than the first. You can get away with a new business strategy in good times, even prosper with the right momentum. In these times when the pipeline may be slower, when firms merge, sectors polarise and the number of players in the market is reduced, there is even more reason to cross-sell and upsell than ever before. JP Getty said: “To succeed in business, to reach the top, an individual must know all it is possible to know about that business”. The same can be said for your clients’ needs. DRIVE Email SuccessMonday 07th December 2009 Like all forms of marketing, the most notable improvements to your email campaigns can be gained by putting yourself in the recipient’s place. Here are the five stages that DRIVE email success. Delivery is about getting the email in front of the recipient by leaping the hurdles at macro (ISPs, webmail services, corporate IT filters) and micro level (individual settings at email user level).
Recognition is the critical stage whereby the recipient identifies the email, ideally by virtue of recognising a trustworthy sender, group or opt-in list.
Interest is gained through a combination of having a compelling subject line and the relevance of the content or offer.
Viewing is about the recipient reading more, holding their attention, exciting their interest and creating a desire to take further action.
Engagement is the stage where the recipient responds to the email (usually in the form of a strong call-to-action and link that the recipient clicks in order to gain fulfilment in terms of viewing a web site, landing page or an article).
Focus on each of the above phases and you will be rewarded by an increase in your email click through rate. No ComparisonFriday 04th December 2009 What is it about finance and insurance comparison sites that compels them to use the standard term “compare” in their brand names? One look at the me-too names here: Lloydstsbcompare.com, tescocompare.com, comparethemarket.com and gocompare.com is enough to show that the main protagonists have jumped on pretty much the same “brandwagon.”
Is the quest of search engine optimisation driving these organisations to focus on the key word 'compare' or is it a nod to the inevitable commoditisation of these services? More worryingly, is it simply a lack of imagination or the vision to create their own space in such a competitive online arena?
These comparison sites are here to help the consumer make clear choices which is entirely laudable, their biggest disservice is their failure to provide a genuinely unique value proposition between them. The lack of any meaningful brand differentiation is enough to leave anyone very confused.com!
The Turner Prize!Thursday 03rd December 2009 Dennis Turner, Chief Economist from HSBC Bank, gave the delegates at the ABFA conference a detailed overview of the UK economy and a spirited ‘state of the nation’ report this morning. As well as providing helpful high-level insight, which concluded that we are ‘on our way’, if somewhat directionally U-shaped, Dennis gave us some true moments of joy.
Here’s my “Top Ten” list of highlights: “My wife had her credit card stolen. I didn’t report it as they were spending less than she does.” “Recession – The time when even those people who have no intention of paying you stop buying.” “British people are smart – We know it’s important to live within our means, even if we have to borrow to do so.” “I don’t buy this spin on global slowdown, we did this entirely on our own.” “Definition of an economist - Knows 100 ways to make love and doesn’t know any women” “ERM, the European Recessionary Mechanism” “The Government didn’t promise us very much and they delivered.” “An average man with his feet in the oven and his head in the freezer is comfortable.” “This, to an economist, is the centre pages of Playboy” “5 to 7 years is the average, my forecast is 6 years” The ‘Art’ of Influencing PeopleThursday 03rd December 2009 I thoroughly enjoyed Dil Sidhu’s presentation at the ABFA conference on the 6 leading principles of the science behind the ‘art’ of influencing people. Dil is the National Director – Working Capital Management within the business restructuring practice of BDO LLP.
He kicked off with the comment that we are exposed to 1,700 messages per day that attempt to influence and persuade us. The key take away here for me is that one of those communications may be well be one of ours or yours, emphasising that we must all continually focus on creating our own space to compete in all that noise out there. 1. The first principle is that of Reciprocity – ‘good old give and take’ which Dil illustrated with an example of Ethiopia sending aid to Mexico as a reciprocal act for aid granted many years earlier. It also goes to show that reciprocity doesn’t have a shelf life. But what represents a true gift? Dil tells us that it must be A. Significant B. Personal and C. Unexpected. Giving first and giving often is also important. Here, Dil used the example of a loyalty card, which performed far better in terms of redemption in situations where the store stamped the first three stars to ‘get the customer started’. 2. The second principle is Scarcity – “If I can’t have it, I want it even more”. We see the effects of this approach every day. Think Go-Go Hamsters if you want a current real-life example. 3. The third is Authority – “Trust me, I’m an expert.” A single mention of a legitimate authority’s view in the media changes public opinion. He went on to say that the principle is so powerful that even fictitious “authorities” are influential. However, even experts won’t be persuasive unless the audience views the information as honest and unbiased. A credible authority requires both expertise and trustworthiness. 4. Consistency & Commitment is principle 4. The slight difference in the two sentences below reveals the power of this principle: Please call if you need to change your reservation (30% No Show) can be changed to Will you please call if you need to change your reservation (30% No Show). Dil also pointed out the power of making goals known publicly results in a far greater probability of achievement. 5. Consensus is the fifth principle. Don’t rely on your powers of persuasion if you can use others as well. 6. The final principle is Liking. Joe Girard, ‘the world’s greatest salesman’ sent cards to his customers saying “I like You. All The Best, Joe Girard ”. Admittedly, it is a rather US-centric example (some members of the audience thought that it might come across as ‘stalking’) but the message is clear. Liking is governed by 3 criteria: Similarities, Compliments and Co-operation. So how do you apply these principles in specific situations? Here are three ways: Decision – Authority and Consensus Action – Scarcity and Consistency Relationships – Reciprocity and Liking. It’s great to have another perspective and it has been an excellent guide to Harvard Research on the subject as well as an introduction to the thinking of Professor Robert Cialdini. Get E-lated EarlyThursday 03rd December 2009 I’ve just come out of Philip Learmont’s session at the ABFA Conference, ‘Reducing Risk and Cost with Document Automation’. It is not just that he is a genuinely good bloke (I enjoyed a great fish and chip meal with him and the guys from Vision Critical last night) but that he conveys a strong message to the industry with clarity and purpose as to the competitive advantages of e-based solutions throughout the ‘Order to Cash Process’.All too often, document management is seen as an end of life activity, whereas dematerializing it as early as possible in the process permits a step change in processing at cost, cash flow, risk and process levels. The savings are obvious, not only in terms of postage but also in staff costs. The cash flow benefit is similarly compelling: Transparency in terms of debtor activity, focus on those who need chasing, speed of same day delivery, communication and query capability, supporting information such as linked PODs and copy invoices. Philip then outlines risks and mitigation through e- based solutions. The technology is now available to the receivables and ABL markets to achieve effective document automation. It is certainly proven in other markets and there is the potential for strong first mover advantage. As Oliver Chadwick mentioned recently in his column in Business Money magazine: “If all 8 million transactions processed by OSMO® had all been sent as traditional invoices, it would have resulted in 51 metric tons of paper. That, in turn, represents 960 trees which have been saved, in addition to 113 barrels of oil, 231,785 kilowatts of electricity, 138 cubic metres of landfill space and 1,515 kilograms of air pollutants. Consider that across Europe, there are currently some 15 billion paper invoice transactions and you can see the scale of both the problem and the opportunity for the commercial finance industry. It is time that everyone involved in the receivables industry started taking CSER generally and e-invoicing specifically very seriously indeed.” Add this to the comments made by Philip Learmont above and it becomes a very persuasive story, which at least one female audience member described as ‘seductive’. Opportunity Knocks!Thursday 03rd December 2009 2010 must surely be the toughest year to call since Bob Lefroy started Business Money.I think we all look forward to the economic session at the ABFA Conference today for an informed glimpse into the future. A number of people I spoke to yesterday at the ABFA Welcome Reception, sponsored by Vision Critical, predicted that next year will see a continuation of the refinancing and turnaround focus we have witnessed throughout 2009. Asset Based Lenders say that they are receiving actual or anecdotal evidence from corporate advisers of percolating trickles of transactional activity. As a conference theme, ‘Back to Basics’ speaks of a solid platform and reminds us that we can’t be complacent. Stephen Wells of De Vere & Co added the caveat that we may not so much be at the top of the V but at the mid point of the W. Certainly, the unprecedented shock of the past two years should theoretically lead to a more balanced, less risky pathway to growth – one in which the short-term returns may be lower, but the long-term rewards for management success will be a lot more sustainable and secure. Mat Heritage of Vision Critical was rather more bullish and feels that the conference theme should be ‘Opportunity Knocks’. Hughie Green aside, tough times can open up opportunities. Recessions upset the status quo: Often both gains and losses can be more pronounced than usual. Recession can be the optimum time to overtake competitors. Successful athletes often choose times of maximum stress to mount attacks, increasing their pace on severe inclines. In a similar vein, proactive marketing includes both the sensing of the existence of the opportunity (a tough hill and fatigued opponents) and an aggressive response (possessing the necessary strength or resource) to the opportunity. At this time, clients also put much more thought into their choices – which means they may be unusually open to a financial marketer’s messages. In a more collaborative, less transactional world as we have right now, closer relationships with customers, suppliers, employees and shareholders are paramount. Downturns have the tendency to greatly magnify benefits and accelerate rewards. Invest in the right technology and you can increase process efficiency, drive down operational cost and gain early warning against risk at a time when you need to most. Invest in marketing and you will gain a greater share of voice during ‘quieter’ times with sustainable benefits and the opportunity to position your organisation ready for the the upstroke of the W. Opportunity knocks? I believe so. Grab the Tiger by the TailWednesday 02nd December 2009 In a statement on his web site today, Tiger Woods says that he regrets his recent string of "transgressions" and speaks of not being true to his values. What impact do his personal values have on the brand values of those financiers who have aligned themselves to him via sponsorship? Why is celebrity endorsement a problem in terms of Creating Your Own Space? The relationship of financial brand to high profile, clean-cut celebrity would seem to be perfectly aligned and the ads are, after all, in the main well-executed creatively. Last month, I blogged that there are four reasons why it is important to be beware of celebrity endorsements: - You are buying into an image over which you have no control (what if the celebrity you choose is involved in a scandal?) - You are introducing two brands into the equation which may potentially confuse the target audience - You are potentially diluting your own brand's power - You have a relationship with a celebrity who has other more powerful and relevant brand linkages (In Tiger's case, Nike - which does matter if it eclipses other sponsor deals in scale, reach and presence) Financial institutions take note. A Great ReceptionWednesday 02nd December 2009 We’re looking forward to the Asset Based Finance Association (ABFA) Conference more than ever this year. And, before you say anything, it’s not just because our good friends at Vision Critical are sponsoring the Welcome Reception this evening (albeit that it’s a great reason to attend in its own right)!Unmissable and unforgettable were at least two of the ‘Un’s’ that were mentioned last time they sponsored the drinks. Venice was really special for all sorts of reasons, not least the spectacular palace in which the reception was hosted. Admittedly, these are more sober times (an odd phrase choice of phrase considering the subject matter) but I have to say the prospect of discussing the challenges facing the industry in 2010 and beyond are exciting. The theme of the 2009 conference is ‘Back to Basics’ and based in Brighton (forgive the alliteration). However, we were thinking only last week just how much the receivables market has changed in a matter of two years and what an interesting time it is to explore opportunities even closer to home. In a market that has seen such dramatic change in terms of the fortunes of players large and small, 2010 certainly looks like being no exception. The market will inevitably see more refinancings, restructures and turnarounds and rumour has it that it that it will become known as the year of the pre-pack. Transactional activity is predicted to pick up by September 2010 and there may even be the promise of tectonic plates shifting, as players change hands or become absorbed. So then, ‘Back to Basics’. Well, December is a traditionally good time to take a few paces back and take a considered view as how to grow a commercial finance operation through sales & marketing excellence and acquisition, whilst reducing risk. This is also an ideal time to look forward. The conference itself is far from navel-gazing as a result. We relish the prospect of the two Turners taking to the stage. There’s a fascinating session on New Markets, New Opportunities, New Risks with Paul Turner, Head of Sustainable Development, Wholesale Banking, Lloyds Banking Group. Dennis Turner, Chief Economist of HSBC Bank plc in the City, will be giving the Key Note Speech, which will give us some up to date economic insight. Reading his biog, We thought that being a director of Fulham Football Club, he must know quite a bit about highs and lows - ideally qualified to conduct an economic overview right now! We’re also particularly keen on attending Developments in Collections Technology as well as Influence and Persuasion session, where, intriguingly Dil Sidhu of BDO Stoy Hayward LLP explores the 6 leading principles of the science behind the ‘art’ of influencing people. A 21st century take on Dale Carnegie’s How to Win Friends and Influence People it isn’t. This is based on the latest scientific research from Harvard Business School and showcases in the arrestingly titled Technology and Motivation Zone. Whilst we are at our busiest with the buzz of new campaigns for 2010, we’re really looking forward to tomorrow and to the prospect of seeing friends old and new this evening! Financial Marketing Trends for 2010Tuesday 01st December 2009 When asked to predict financial marketing trends for 2010, I struggled with the words to describe some of the new changes I was starting to see and developments I was thinking about, so I have created some new word constructs. I know what you’re thinking, the marketing world doesn’t need any more buzzwords - but seriously, what trends have you spotted? Disruptiation (Disruptive Differentiation) Only destruction and disruption will lead to optimum differentiation as financial firms look to break away from the stranglehold of sameness for survival. This is a very new financial landscape and this is ‘business as unusual’. In 2010, as the recession eases, it will no longer be enough to offer a me-too service or share similar value propositions with your competitors. Put sacred cows out to graze. Eliminate the average. Look outside your immediate markets for inspiration. Focus on a strong, distinctive core brand essence. But above all, be authentic. Themetics (Memetic Themes) The term "meme" was created in 1976 by Richard Dawkins in his book "The Selfish Gene." Themetics are remarkable ideas, linked to a central strategically developed theme, that are deliberately spread throughout a culture and are absorbed by a receptive community. KPIs should focus on downloads, embeds, forwards, mentions, comments and other measures of community interaction. Tribalogy (Tribal Technology) Crowdsourcing, the creation of passionate groups or tribes around a common interest, market, product or geographic reach using social media technologies will become even more important in 2010. The recent Tribalization of Business study by Deloitte has found that 94% of businesses will continue or increase their investment in online communities and social media next year. What technologies reach your target tribes? Altiances (Alternative Alliances) While it makes sense to build partnerships in good times, the rationale for alternative alliances is even stronger during a time of economic challenges. Strategic alliances allow firms to create new bundles of value, increase distribution, expand into new markets, test new approaches, fill market gaps, reduce overhead, leverage resources and share risk. Who can you link up with that no-one in your industry has before to deliver superior value? Vidlocity (Video Velocity) A viral video is a video clip that gains widespread popularity through the process of Internet sharing. Vidlocity speeds up and amplifies messages by seeding videos to influential journalists, bloggers, and twitterati, and spreading content across channels and communities on social media properties such as Facebook, YouTube, LinkedIn, Twitter, and StumbleUpon. Apcceleration (Application Acceleration) 2010 will be the year where B2B marketers start to get their heads round useful mobile marketing applications. By that, we are not talking about old-school WAP web sites. It may be idea led or data (mash-ups) led but it’s the right time for marketers to start to make the most of the app revolution and accelerate development. Entergagement (Entertaining Engagement) If content was king in 2009, engagement is the key to success in 2010. This comes from the recognition amongst B2B marketers that content must in future involve target audiences by entertaining and informing them in fresh and compelling ways. Great content is not passively observed, it is actively searched for, watched and engaged with, followed and passed-along. It’s not enough to be an information source; to compete, the communication must also stand out. This comes with the responsibility that authority and trust are also vitally constituent elements of influence and engagement. Stratmetrics (Strategic Metrics) Most marketing measurement efforts so often lack strategic input and vision. Marketing analysts are really good at tracking campaign results and even predicting future responses. However, their responsibilities are often to maximise tactical program performance rather than measure the influence of marketing across their firm’s strategic goals. 2010 is about alignment with strategic goals and the correct weightings must be applied to the metrics that matter. Trustferral (Trusted Referral) Word of mouth marketing, WOM, has been the most consistently talked about B2B marketing feature over the past three years. However, in practice there is little emphasis on integrating this within the marketing mix. The reality is that most marketing budgets in B2B financial marketing are geared towards the generation of new business, either directly or via key business introducers. Client referral tends to be passive, yet has the potential to increase business in multiples and at a superior conversion rate to many other forms of introductory sources. Medigration (Media Integration) Media convergence is a concept in which old and new media intersect; when grassroots and corporate media intertwine in such a way that the balance of power between media producers and media consumers shifts in unpredictable ways. This is not new, what is exciting is the potential for proven integrated marketing techniques to be migrated to a new and shifting landscape. The need for firms to create and nurture a distinctive core brand essence and a clearly expressed unique value proposition has never been greater. Budget for Business in 2010Monday 30th November 2009 I hate to say it but marketers get what they deserve
sometimes. Budgeting is one of the most important areas of focus for
financial marketers at this time of year but how much attention is
devoted to it and how much of it gets delivered as an arbitrary figure
from on-high, leaving the marketing department to allocate it? Often,
where there is no marketing director, the board either increases or
reduces the bottom-line figure by a percentage point or two or applies
a marketing:turnover ratio, which, at best, is meaningless. Next, base your budgeting plans on the following straightforward steps: Indifference Feels the SameFriday 27th November 2009 I heard a song from a very talented busker at the South Bank and invested a crisp note for his album. One of the lines in the first verse struck me: “Indifference feels the same.” It reminded me of a quote I read from Dan Clark: “In today’s business environment, the word ’same’ could be shorthand for ‘out of business.’” Here’s one of my own “If you don’t care enough to be different, who will?” Bear EssentialsThursday 26th November 2009 “Here is Edward Bear, coming downstairs now, bump, bump, bump, on the back of his head, behind Christopher Robin. It is, as far as he knows, the only way of coming downstairs, but sometimes he feels that there really is another way, if only he could stop bumping for a moment and think of it.” Perhaps surprisingly, the opening line of the much-loved children’s classic, Winnie the Pooh, offers a very clear message to financial marketers right now. After the past few days frenetic, jarring market activity, NOW is the time to find a place to sit and think – to take time out to plan effectively, consider alternatives objectively and then act decisively on your marketing approach for the remainder of 2009. Leslie Bland, previous Managing Director of Close Invoice Finance, said something to me a few years ago that I have never forgotten: “Take time to work ON your business, rather than just in your business.” It’s something that we have taken to heart both with our agency and our clients' approaches to their marketing. 2010 is almost upon us, so jump (not bump) several steps ahead of your competitors and start the planning process now. Gain the benefit of our independent perspective, using us as your marketing sounding board. Visualise the marketing achievements you most want to see by the end of this year to make your financial brand even stronger for next. Re-define your marketing. Then, e-define it! Think about ways in which the Internet can enhance your customer experience and set realistic, tangible goals for continuous marketing improvement. Why just bump along? Doing nothing may seem an easy option right now, the reality is that it’s not the most comfortable option for your business long-term. Steal Share of VoiceWednesday 25th November 2009 "Anybody who retrenches because of the recession has really got his head in the sand," said John Vanderzee, of the Ford Motor Company way back in 1991. "You can't not spend." To increase spending on marketing at this time may seem counter-intuitive, but this is exactly what businesses should be doing right now. Brands with sustained marketing expenditure will create strong competitive advantage by stealing share of voice. Four ingredients need to be in place to steal share of voice: Character – Create a leadership positioning based on the core essence of your brand and become the authority in your market.
Culture – Foster entrepreneurialism to develop plans, pilot new marketing approaches and roll out successes.
Capital – Commit the resources and budget you need to make your plans a reality.
Calendar – Put deadlines and milestones against every element of your programme and monitor and measure progress. Structure Your StoryTuesday 24th November 2009 Here’s Aristotle’s six-step guide to writing compelling, captivating copy and powerful presentations (subject to considerable poetic license): Exordium – Big Intro Narratio – Empathy Partitio – Contents Confirmatio – The Solution Refutatio – Competitive Advantage Peroratio – Call to Action Think Ansoff, Covey, Kotler, Levitt, Mintzberg and Porter, rolled into one brilliantly be-robed and bearded package. Aristotle still has a lot to teach us. Philosophically SpeakingMonday 23rd November 2009 In this age of the sound bite, it’s helpful to get back to what clear communication is all about, by taking a leaf out of what is a very large book indeed - Aristotle’s “Rhetoric”. If you think it’s all Greek to you, here are some highlights: 1. Teleology - A Sense of Purpose 2. Ethos - Become the Authority 3. Pathos - Engage the Emotions 4. Logos – Use Proof Points
Logos means applying relevant facts and figures to support your case. Use the three modes of rhetoric, Ethos, Pathos and Logos, together for maximum effect.
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