Going beyond ROI
- Thu 13th November 2008, 12:23 pm
The following article by Gary Sharpen and myself appeared in Campaign in October
We are an industry obsessed with ROI. A term that originated in accountancy we have now made our own. A handy blunt instrument we wield to show a campaign has worked. Not for us the brand-building nonsense of our advertising cousins. We can show sales. As “crunch” turns into “downturn” turns into “recession” this short-termism will become evermore prevalent.
Whatever happened to conversations about building the customer life time value? Whatever happened to shareholder value? Perhaps we have just become an extension of the client’s sales department and forgotten that we are in the communications business.
Let’s be clear, measurability and accountability are paramount. But surely they should not be the end point but the starting point.
We now live in a much fabled brave new world of instant communication, with access to unparallel levels of information and a multi-networked society. We have moved from the days of consumer power being limited to Which? magazine and BBC Watchdog. Now we have the instant power of the blog, Trip Advisor, Top Table, Amazon reviews, eBay ratings, search engines, Google and more. With access to such feedback who will consumers trust more, the marketing and brand messages, or the so easy to find user experience?
Now should be the time that we become equally obsessed with the 99% who don’t respond, considering the effect our communications have on them, as we are with the 1% who do respond. We have, as an industry, poured hours and countless pounds into driving higher short term response. Better targeting, segmentation models, propensity models, churn prediction models and 1-2-1 targeting are all admirable and, no doubt, scientific stuff. But what has this led to? Acceptable campaign ROI’s for sure, maintenance of response rates no doubt, but has it delivered true consumer engagement? What of our recommendation rates, advocacy levels, product reviews and brand saliency measures? We should be equally obsessed with these as we are with the actual response rate.
The advertising industry has educated clients to accept that their campaigns take time to build, that it takes a certain level of frequency or exposure before a consumer can recall the communication. We on the other hand have educated clients that we are one hit heroes, delivering our campaign objectives with a single strike. This will come back to haunt us now that consumers have so many more access points to a brand than our single communication.
The Royal Mail has undertaken a number of studies into the medium. Understanding the ritual of receiving, opening and indeed reading mail, even which rooms in the house they are read, stored or binned/recycled. Post that needs actioning ends up in the kitchen with more engaging items ending up in areas of relaxation like the lounge. A lot of mail not only lingers for while, adorning fridges and notice boards, but is also passed on to friends and family. And despite our careful targeting not all is opened by the recipient, with 8% of men claiming their partner opens their mail. Somehow they also managed to ascertain that people who don’t throw away direct mail spend up to 4 minutes and 32 seconds reading it, versus less than 4 minutes on their utility bill, with 20% retaining it for review and action at a later date.
We have also discovered that similar affects can happen with email. Particularly surprising for this most instant of mediums in some of the categories we work in, notably holidays, we found that response, purchase and click through can take up to 90 days.
All this means that we do have a much greater opportunity to drive consumer engagement than we talk about or previously understood. Royal Mail proved this in further studies with DunnHumby and a number of FMCG brands where they found that whilst in the short term a campaign could deliver an ROI of over 30% this increased to over 70% during the long term.
How should we be delivering this engagement? Obviously we should consider how we deliver the message and how often. But the point is we should consider the initial point of response of the campaign, the magic 1%, as the starting point, a hygiene factor. The bigger task is how to measure how well we are engaging the non-responders and what we then need to do to convert them. Direct communications need to take account of a longer term strategy where differing direct channels converge to build overtime a broader conversation beyond the 1%. Ideally we would begin to be able to gauge who needs what level of communication to convert, as well as who are more likely to become advocates and so are also worth investing in.
Fuelling advocacy is becoming a channel in itself – Word of Mouth or C2C (consumer to consumer). Target the right product at well-connected, socially gregarious people and these same people will do the rest. This is something we have trialled for clients and have seen recommended sales anywhere from 8 to 30 times, dependent on product. Which, of course, then fuels its own further advocacy. Perhaps this is the true measure of engagement, but what value did we attribute to the first sale made to the advocate, that of the additional 30 or just the single sale?
This isn’t though just about acquisition, working across a lot of service industries, we have seen our role develop to manage customer journeys. Help in delivering true moments of brand truth through the post sale, ongoing customer management and development stage, through to retention and loyalty. With one organisation the customer centric and highly personalised CRM strategy has gone on to become the core brand thought, leading to increased advocacy.
We understand customers better, through data interrogation and insight, and have the access to the right channels to deliver the necessary compelling and engaging communications. The true measure for the direct marketing industry shouldn’t therefore be just about short-term campaign ROI. We owe it to our clients to think bigger and be more responsible. We owe it to them to champion long-term customer value.
Understanding Gen Y - you bleeding 20 somethings!!
- Tue 2nd September 2008, 10:22 am
Millenniums, Net Generation, Digerati whatever you want to call them, with over 9.7 million of them in the UK aged between 14 – 29 they have the power and will to destroy your brand unless you engage with them in the appropriate manner.
Much maligned as work shy prima donnas, interested only in work as a way to fund a cycle of never ending Gap years. They have been labeled the spoilt generation, “Generation Why do I have to do that?” Created by over attentive, molly coddling parents and fueled by instant entertainment leading to low thresholds of boredom and an inability to knuckle down and focus on tasks at hand.
They are though the first generation to embrace and master technology utilising it to democratise media, driving consumer power through web 2.0. The power of social networking, blogs etc means charlatan brands and glossy spun marketing programmes will be exposed and the brands rubbished.
Furthermore this is a generation who truly put social responsibility at the heart of their thinking and purchasing power. Unlike previous generations, they are not dismissed or marginalised as merely cranks, tree huggers, militants and activists. This is mainstream, powered by their net savvyness and ready access to their own influential media. So climate change, the environment, wasteful resources, factory farming, third world sweatshops are all high on their agenda and low on their shopping list. As brands such as Gap, Nike and the “devil wears Primark” have found to their cost.
So what has framed their attitudes? Aside from the obvious birth and influence of the internet, more traditional media has helped build the global village and proximity of world events and traumas - Gulf wars, Afghanistan, Tsunamis, earthquakes, floods and the environment have all been very real for them and forged a greater appreciation of social responsibility and a greater appreciation of cultural diversity.
However, perhaps the biggest influence has been the economy. This is a generation that have, until recent events, only ever experienced a boom economy. This has afforded them the luxury to pursue their personal agenda at the expense of employers, confident that another job, career is ever around the corner and all funded by easy access to cheap debt. The interesting facet is how will they react to a downturn. Will this and the credit squeeze cause them to value a job over life experience? And will the tightening of purse strings make ethical brands beyond the affordable reach?
So how best to engage with them? This is the generation that has seen more marketing, advertising and hype than any other. They see through it. They want brands that seem to be speaking with them rather than at them, brands that let them participate with them. They want brands that stand for something rather than just buying a logo. Emotional engagement can come from your companies alignment with a cause rather than a creative execution or manufactured brand value.
How can you reach them? Well they spend more time online than in front of the TV so go where they are, join their social networks, invite them to participate in your brand promotion via online or offline. Go viral, let them find your communications and encourage them to join in, but do it well, don’t manage it. Viewer created ads are already becoming a big thing in the US (check out current.com) and far more believable and accessible. Some brands are already achieving this, Toyota in the States have had great success with owners Prius ads. But don’t fake it, you’ll get found out (see www.hoax-slayer.com/) we daily read of brands that have tried and failed from Walmart to Wii!
The Netball Champions
- Fri 29th August 2008, 10:38 am
After completing my triathlon, Soph whizzing through her half marathon and Heidi finishing the Comrades in a super speedy time, we decided that we all needed a new challenge.
So...what better than the Putney netball league?! After unsuccesfully attempting to recruit a team from the agency, we pimped ourselves out to an existing team, who were obviously most impressed with their new and extremely talented recruits!
After 8 weeks of climbing up the league, we made the pinnacle of Putney sporting events - the grand final. 8pm on a grey August evening, the light was already fading as the 2 top teams lined up for the big match.
It was a close fought 1st half but with great defence and top shooting (if I don`t say so myself) our team was 2 goals up at half time. After a motivational team talk, we were rearing to go for the 2nd half. We took control of the game and in almost complete darkness were crowned the champions!
Bring on the next challenge!!
Comrades Ultra Marathon Experience
- Tue 24th June 2008, 4:47 pm
Two days after the race ... Heidi`s feet are on ice, Steve is off his food, Nick and Andrew are struggling to stand up, and Leyton is frustratingly looking as fresh as ever with a beer in his hand (hurting inside we think). I think we under estimated once again, just how much this takes out of you physically. I`m sure it will be weeks before any of us will be able to run at all, and the effects of any injury will be become evident.
Race day... We woke at 2:45am after a nervous nights sleep and prepared for the day with our usual toast, peanut butter, banana and honey. Vaseline all round and off to the start. What an amazing experience it was, waiting for the start with the other 11000 runners. The crowds sang Nkosi Sikelel` followed by Shosholoza before the traditional chariots of fire played over the speakers. A fantastic feeling for all as the cock crowed and we headed out of Durban.
It wasn`t long before we realised the intensity of the hills as we climbed steeply out of Durban and over forty fifth cutting in the dark. As we approached Westville, the sun started to come up and the crowd support seemed to get better as more and more people got out of bed.
I think I speak for everyone when I say that Fields hill (13miles) set the scene for a truly challenging day ahead. The sun was now beating down over a very challenging climb, and the hill training around Richmond and Kingston (and even the hills of Plymouth for Steve) had not prepared us for the intensity. Kloof through to Hillcrest was a `gentle` climb in the scheme of things and the crowd support was now much better. The temperature increased once again as we approached Botha`s Hill which was another shock to the system as it over shadowed an already difficult Fields Hill. We all reached half way (27miles) in our anticipated times as the temperature had now rose to around 27 degrees Celsius, and much hotter than anyone had expected.
The climb continued as the heat took it`s toll, and the water that we poured over ourselves dried totally in less than a minute. Thankfully the organisation of the event and amount of refreshment stations helped massively to keep the legs moving forward. After completing over a marathon distance over this terrain and in this heat, the last thing you want to see is a sign that says, `44km to go` (27miles). Your mind now starts to doubt things, and you question once again if you`ll find the strength to continue. Not physical strength though because at this stage there`s nothing left. It`s now over to the mind.
And then... at 46 miles, you reach Polly Shorts... A gruesome climb at this very late stage of the race and the hottest time of day (now a staggering 31 degrees Celsius!) Numerous runners lay on the side awaiting medical treatment as they fail to conquer the climb and pull out of the race. All anticipated finish times are questionable at the stage as you underestimate how long the last 7 miles will take. The green number runners (completed more than 10 Comrades) advise you not to look, as some unfortunate runners either lay sprawled on the verge or crouched over being sick. Very few, if any are able to run up Polly Shorts, and those that are trying are later seen falling back in the pack or sitting at the side of the road. Once over the top, it`s 5 miles to go, and what is normally an easy distance to run, is a battle of emotions as each and every step is excruciatingly painful.
Coming into the stadium in Pietermaritzburg was a truly amazing experience for all, as you really struggle to hold back all the emotion, as your body is on it`s last legs and running only through the assistance of the crowd support. Thankfully, this years race was fatality free, unlike last year when 2 people had died. Unfortunately one runner was robbed of his running shoes as he stopped for the toilet in the bushes on Fields Hill, and another later into the race.
And our results... Well, given the heat and the intensity of the `up run` I think that we were all glad to get over the finish line. Steve finished in a fantastic time of 7hrs 57mins in 681st place out of 11000 runners. Heidi, a staggering 49th lady home out of over 3000 female runners in a time of 8hrs 40mins. Leyton then crossed the finish line in 9hrs 32mins, followed by Andrew in 10hrs 00 mins and then Nick in 11hrs 12mins. Over 2500 runners didn`t make the finish line, which puts this race into prespective.
Creativity in Finance
- Wed 23rd April 2008, 3:59 pm
Imagine our surprise as we all shuffled around to get our expenses paid in the finance department to find not the normally, sober suited Head of Finance but a new funky Steen.
Well we have all heard of creative accounting but this is taking it just that little bit too far. We all know that Steen (chief bean counter) worked at BBH once but does he have to dress like John Hegarty. (For you youngsters he is an advertising creative luvvy god!).
What next creatives in suits, digital team shaving! Is the agency world going to pot!
We are told normal somber dress sense will be resumed as soon as possible
G
Heidi`s Blog
- Thu 17th April 2008, 3:51 pm
I’m one of those mad WDMPers who loves keeping fit. My next venture is to run a 56 mile race on the 15th of June in Durban, South Africa, called the Comrades Ultra Marathon.
Here’s a taster of what I’m letting myself in for:
‘At least 50km of the race is uphill, there is about 13km of downhill running, and the remaining 23km are either a steady climb or flat. You have to climb 650m in only 43km, and get over three major hills on the way to Drummond at half way. Then you have 43 km to go with the cruellest and steepest climb coming at Polly Shorts with 10km to go. You simply have to be a good hill runner to complete this run.’
I’ve run the Comrades once before, 5 days before my wedding, and ran it with my husband in 10 hours and 30 minutes. I plan on doing it on my own 2nd time around and am hoping to do it in under 9 hours this time.
Last weekend I ran the Taunton Marathon, to qualify for The Comrades and ran a comfortable race. My aim was to race at an easy, constant pace, which I managed. I ran even splits of 1 hr 45 minutes through the first half and 1hr 47 minutes in the second half. My plan was to try and not slow down at any stage, and finish the race knowing that on Comrades day I would have another 30 miles to go. The training schedules strongly suggest not ‘racing’ any marathons before Comrades, as your body takes weeks to recover. It’s difficult to do on the day, as you fight the urge not to give it your all. There’s certainly a lot of discipline involved.
My legs are feeling a little tender but I’m back training and have a 20-miler planned for Friday night with 2 mates. I have a football game Sunday so I’m taking Saturday off to recover (which is why I need to run Friday night). I’m running about 70 miles a week at the moment, as well as playing football and I’m glad to say I don’t have any injuries as yet. I do have a one hour sports massage every second week, which seems to help with muscle recovery and I do my best to take on as much Protein as possible.
My next Marathon is the Stratford Marathon on the 27th of April, and I plan on running 6 miles before the race which will enable me to total 32miles on the day which will be the longest run I will complete for my preparation.
I want to use this opportunity to raise money for Mencap, so please help me to reach my goal by donating whatever you can on my charity web link http://www.justgiving.com/steve72wright
Heidi
Here I am
- Fri 29th February 2008, 3:49 pm
"Big Gav" asked me to write a blog cos I`m new. Is this where I say WDMP is a great, fun, lively, energetic, wacky place to work? If so Gav sort us out that £50 you promised.
I`ve been here just over a month now, I`ve settled in rather quickly (second time round) having freelanced here for a month last year. Why did I come back? Well because it is a fun, lively, and energetic place to work. Situated in picturesque Putney with only a 40 min door to door commute for me I couldn’t ask for more! I’ve had my share of client side for a short period and I’ve been in this game for about 10 years and I have to say agencies are where its at.
I`ve read previous blogs and it seems fitness is a key subject, I have nothing to add to this other than I do try. Having experienced my first WDMP booze session last night, you guys did me proud. There were the splits, shots of slippery nipples and a refused entry due to intoxication. BRILLIANT!
I`ve done my bit, I`ve nothing more to add at this present time (does this mean I have met one of my objectives?!).
All that`s left to say is thanks for having me and bring on the Norwich Union, I`m ready!
Bevo x
The BIG move
- Thu 28th February 2008, 4:20 pm
I have finally moved to cosmopolitan Clapham and loving it. For a small person it was surprising what a big move it was. But a girl can never have enough bags and shoes!!
So no more bringing mops into work, and moaning about gumtree! Just plans for a `moving in` cocktail party instead. Anyone who fancies some fun and frolicks let me know and you`re welcome to come.
Also If anyone knows of any groovy places to go around Clapham, please let me know. I`m still getting use to city life and especially the sights of Clapham. Infernos night club, thumbs up or down?? I`m sure it`s cheesy but who doesn`t love a bit of saturday night fever.
The New girl
- Mon 25th February 2008, 5:44 pm
Having been an employee of WDMP for just 5 weeks it`s been quite an induction, and I feel like I`ve worked here for years (that`s a compliment, honest). But what observations can I make?:
Like other DM agencies:
•Flirting with studio is the best way to jump the queue (an observation, not actual experience…)
•The fridge is always full of smelly food
•Friday drinkies are initiated by a loyal and committed few
Unlike other agencies:
•I sit next to my MD – and Gavin helped me on my first day with my computer
•Everybody is really into fitness – apparently the whole agency once attended a Spinning Class (I didn’t even know what a Spinning Class was)
•Long hours are not derigeur
•You get told off for printing pages of email trail – and start actually to ‘think before you print’
To sum up, and with 10 years of agency experience – from medium to biggish, DM to publishing – it’s a pretty cool agency that produces fine work, and has quite a lot of fun.
"Do or DIY"
- Mon 25th February 2008, 11:42 am
Any romantic elusions I had about doing up our first flat were quickly dampened that first evening when I arrived, two hours after the deal completed, to find no kitchen ceiling (and Tim and his father stood grinning, crowbars in hands!).
But, typical to form, within two days they had installed a brand new ceiling with lovely shiny recessed lights to boot. I was a happier bunny! And to my credit I did actually help, a little…well any excuse to wear this snazzy paper boiler suit!
Anyway, three months of hard work, soup dinners and cups of tea in mugs you’ve just soaked the paint brushes in, and our new home is almost complete. And I LOVE it!
I now know how to size a wall (the most tedious job in the world!), strip wall paper, achieve a perfect paint coat on the ceiling (tip - wear a hat, Off-white Dulux is NOT a good look; terribly ageing!) and sand a floor - it’s been a steep learning curve!
