Can Marketers Have Conversations?

Today, Sam Lawrence, the CMO of Jive Software, did a post entitled, "Stop guarding your precious brand". The basic message is that marketing and PR people are too controlling, they need to let go, and they need to have "conversations" with the market...

Marketing needs to be released from being solely responsible for changing perceptions or driving leads. They should be enabling the organization to make meaningful, positive customer experiences and connections. This may seem like a subtle shift but when Marketing can feel comfortable becoming listeners instead of blasting sales messages, dramatic change ensues. Suddenly, employees start to really learn about what interests the market without a commercial agenda. Real conversations begin and Marketers begin to enlist the assets of the organization. This results in much more positive customer experiences. I think of this as ROB (”Return on Behavior”) others may think of it as some form of Net Promotor Score (NPS).

I agree with Sam but I do think it is a difficult mindset for marketers to become comfortable with. I have been in the enterprise software space for much of my career and historically, organizations have spent a tremendous amount of time crafting the perfect messages they want to push out to the marketplace in preparation for marketing events (i.e., a product launch). In an earlier post, I questioned whether the time spent in developing the perfect marketing messages was worth it and proposed a different mindset...

A launch is the beginning of a continuous conversation, not a proclamation that needs to be "set in stone" for a period of time. Sure, you don't want to confuse the marketplace and change your messaging often. At the same time, however, it is now very easy (thanks to the Web, pdf, and PowerPoint) to evolve your messages as you learn more from the marketplace.

With the Internet, there are so many tools available to listen to the "voice of the customer" that it is a shame for marketers not to take advantage of them to have a conversation with their marketplace.

Twitter as a Marketing Vehicle

Josh Catone of ReadWriteWeb just did an interesting article on a new Twitter marketing experiment called Twittermethis. Besides explaining the concept behind Twittermethis, the article talks about how Twitter is a great vehicle for push marketing...

With that in mind, it is easy to see why the most successful marketing done via Twitter is of the "push" variety. Bloggers do this a lot when we tweet about posts we've just published. The hope is that the link will spread virally through the hubs and reach as many listeners as possible.

The key to successful push marketing on Twitter is to attract the right followers (people who have a lot of followers of their own and will retweet your message), and to make sure you don't do it too often. Unless, like the most popular person Twitter, your account is set up specifically for push marketing.

As a marketer, I love the process of figuring out how to use services like Twitter and Facebook as marketing vehicles (dare I call it "Marketing 2.0"?). It's a heck of a lot more fun than "old" vehicles like search engine marketing.

The Age of Personal Brand Marketing

Sarah Perez of ReadWriteWeb posted an article today about a recent study at the University of Texas that shows you may not know your online friends as well as you think you do...

The study, which utilized a Facebook getting-to-know-you type application, "You Just Get Me," showed that the typical information posted on social networking sites, like favorite books, movies, and music, favorite quotes, majors, hometown, and other similar personal information, does not always give others an accurate impression of you.

...Surprisingly, answers to most of the basic type of questions, like those found on social networking sites, did not help users figure out what each other were "really" like. Instead, the researchers found that when a user posted things on their profile like their most embarrassing moment, proudest moment, or spirituality, their personalities were much better understood.

These results do not surprise me. My belief is that to a large extent, online profiles reflect how people want others to perceive them, kind of like a resume, and don't necessarily reflect the true person.

Sarah's article went on to say...

Gosling was drawn to this research because he believed that how one is perceived online is more important than ever these days since social networks are often where other people get their first impression of you. He also mentioned that your social networking profile could also impact your employment opportunities as savvy employers have learned to search out the online profiles of potential new hires.

I also agree with this. Whereas before, when a resume was one of the only tangible profiles of a person, a person now has many online profiles (MySpace, Facebook, LinkedIn, etc.). I think it is important for a person to keep in mind how these different profiles reflect themselves. Often, before I talk to somebody for the first time, typically for business reasons, I am now in the habit of checking their LinkedIn and Facebook profiles to get a basic understanding of who they are.

Whether you like it or not, we are now in the age of personal brand marketing.

Have Marketing Launches Changed?

I am currently consulting to a company that is getting ready to launch their company/service. As a result, I have been thinking a lot lately about the different launches I have participated in over the years and I am going to use this post to wonder out loud, "how much time should be spent on getting the messages just right for a launch?"

My first experiences with marketing launches in the technology world was when I worked at Sybase in the late 1980s/early 1990s (yikes!). At Sybase, we used to spend an incredible amount of time preparing for our launches. In particular, we used to spend unbelievable numbers of hours getting our messaging just right. In those days, it made sense to get your messaging right since we didn't have the tools we have available today to change our messages easily. For example, when it came to developing a sales presentation, we didn't have PowerPoint so we used to send out sets of 35mm slides to our sales reps (I will pause a bit to let some of you younger people wonder how silly that sounds). If we made a change to our sales presentation, we would have to send new 35mm slides to each rep. Since you didn't want to do this a lot, you made sure you didn't change your messaging a lot.

Over the years, however, even when things like the Web and PowerPoint have made it easier to change messages, it still seems to be the mindset within enterprise companies to spend a lot of effort getting the messaging just right when preparing for a launch. A couple recent experiences of mine make me wonder if such an effort is worth it.

Over the last year or so, I have been involved with a couple launches that were very successful (a new release at JotSpot and the first public preview of Twine by Radar Networks). Based on these launches, here is my current thinking:

• The messenger is more important than the message. Sure, time was spent on developing the messages for these launches but it was within reason. More importantly, in my mind, both of these launches had great messengers -- Joe Kraus at JotSpot, and Nova Spivack at Radar Networks -- who were able to effectively communicate the right messages.
• A launch is the beginning of a continuous conversation, not a proclamation that needs to be "set in stone" for a period of time. Sure, you don't want to confuse the marketplace and change your messaging often. At the same time, however, it is now very easy (thanks to the Web, pdf, and PowerPoint) to evolve your messages as you learn more from the marketplace.

What do you think? Does this make sense? Or, are things different when you are marketing enterprise software to organizations, versus "Web 2.0 for business" software to individuals and small groups? (I recently wrote another post related to this segmentation.) Let me know your thoughts.

Marketing and Sales in a Freemium World

I am currently consulting to a couple different start-ups (Pathworks Software and Radar Networks) and they are both planning to enter the market with a freemium type of business model. A term coined by Fred Wilson, Wikipedia defines "freemium business model" as:

The freemium business model works by offering basic services for free, while charging a premium for advanced or special features. The word freemium is a portmanteau created by combining the two aspects of the business model: free + premium. The business model has gained popularity with Web 2.0 companies

In the business world (versus the consumer world), LinkedIn is a great example of a freemium service. Users can use many of LinkedIn's features for free but if you want to take advantage of premium features, like posting a job opening, you need to pay a subscription fee.

From my perspective, the freemium model is very similar to the open source model and is an effective method for start-ups to build their user base; however, the model also forces marketing and sales organizations -- especially those who are used to enterprise selling -- to rethink how they run their functions. In particular...

• The freemium model moves the "sales funnel" into the service being offered.
• The marketing function can now be measured in a quantiative manner.
• The sales function becomes transaction oriented, rather than relationship oriented.

Let me expand on each of these points.

The "Sales Funnel" Moves Into the Service

With any sales funnel, there are multiple steps a prospect takes before becoming a paying customer. Historically, marketing was responsible for part of the funnel (generating qualified leads) and sales was responsible for part of it (closing the deal).

With a freemium offering, the service itself plays a role in the sales funnel. As users use the free version, the service must move them through the sales funnel and entice them to pay for premium features. For this to be effective, the service must include "features" that highlight the premium features.

For example, if you providing an online document management service, one of the premium features might be extra storage. If that is the case, the amount of storage a "free" user is using should always be highlighted and as the user approaches their maximum "free" allotment, visual cues should be provided that encourages the user to sign up and pay for additional storage.

The Marketing Function Can Be Measured Quantiatively

Anybody who has been in the marketing function at a technology company has heard all of the lines -- "how do you justify that marketing budget?", "you are just overhead". It goes on and on. To some extent, it is difficult to argue against some of the underlying messages. In the past, it has been very difficult to quantitatively measure the effectiveness of marketing. Sure, there are some elements that can be easily measured (direct marketing being a good example) but it is difficult to do so for many of the functions within marketing (PR is a good example).

In a freemium model, the entire sales funnel, and therefore the marketing function, can be quantifiably measured. The number of people who visit the website, the number of website visitors who signup for the free service, the number of free users who become paid users. These are all metrics that marketing can greatly effect, and should be held accountable for.

In fact, when taking this metrics-based approach to measuring marketing, I would encourage marketing executives to take a fresh look at how they organize their department. I propose there should be one person (or group) held accountable for each of the metrics.

The Sales Function Becomes Transaction Oriented

The tone of this post thus far could lead a person into thinking that the sales function is no longer needed with the freemium model. That is not the case. The purchase decision making for any service used by a group of users is still an organizational one and it still requires some prodding. I believe, however, that the freemium model dictates a difference in how the sales function should be managed.

Unlike the direct sales model where reps are selling six-figure deals into enterprises by using a relationship-based selling approach, the freemium model encourages much more of an inside sales, transaction-oriented approach. Typically in a freemium model, the size of the early, seeding transactions tend to be small and cannot justify the expenses associated with direct sales. Over time, as a company grows and starts selling larger deals, direct sales can be layered into the sales function.

Summary

The use of the freemium business model is an exciting development in the technology market. It requires a different mindset across an entire company but particularly in the marketing and sales functions. Those organizations who can adopt the new mindset effectively will be ahead of those who remain stuck in the old mindset.

The Marketing of the Nintendo Wii

Over the holidays, my family was in Santa Fe, NM visiting my brother-in-law and his family. They have a Nintendo Wii so, much to my seven-year-old son's (and frankly, my) delight, we got to spend a significant amount of time playing with it. After having hours of fun with the Wii, like David Pogue of the NY Times, even though I am not a gamer, I feel compelled to write about it.

The Wii is not only the coolest gaming system out there right now but I am extremely impressed with what Nintendo is pulling off from a marketing perspective. Explicitly, they are targeting non-gamers like myself but the brilliant part is that they have the hard core gamers as probably their biggest fans. My brother-in-law and his wife have two teenage sons who are hard core gamers and they LOVE the Wii. The scene over the holidays was something to behold -- you had everybody from my seven-year-old son to my wife (who is less of a gamer than me and that is saying something) to our teenage nephews, all having fun playing with the Wii together. This goes against Marketing 101 where you are told to target a particular market segment. Bravo, Nintendo!

BTW, for those of you who are fortunate enough to have a Wii, if you don't have the game, Rayman Raving Rabbids, I highly recommend you purchase it. You will never have this much fun again with a bunch of lunatic rabbits!

The iPhone Introduction - Marketing At Its Best!

For you marketers out there, if you haven't seen Steve Jobs' iPhone announcement presentation at Macworld yesterday, it is worth taking the time to check it out. It is marketing at its best. Besides the fact that the product itself seems to be the coolest thing since, well, the iPod, Jobs shows how presentations should be done. He uses a lot of the basic tenets on giving a good presentation...

• Keep your messages simple and repeat them over and over again. The primary iPhone message was, "The iPhone is a three-in-one device -- an iPod, a cell phone, and an Internet communicator." There is no way you don't remember that after watching Jobs' presentation.
  
• Tell people what you are going to tell them, then tell them, then tell them what you have just told them. For each element of the iPhone (iPod, cell phone, Internet communicator), there were key messages that were communicated, then demo'd, then communicated again.
• Keep your slides simple. The number of words used on each slide was minimal. You didn't spend all of your time trying to read the slides.
  

I am generally not a gadget guy but when it comes to the cell phone/PDA, I have been a devoted Palm/Treo guy from the get-go. After seeing Jobs' presentation, however, I wish I could have run out and purchased an iPhone right away. After thinking about it overnight and after reading some of the early hands-on reviews, my feelings are a bit more tempered. Here are a couple questions I need answered before I make a purchase:

• Will I be able to sync my Outlook contact/calendar info into iTunes? Michael Gartenberg of Jupiter Research is not sure about this. Would Apple really ignore Outlook's installed base of about 300 million users?
  
• Will I be able to drive the iPhone with one hand? One of the things I love about the Treo is that I can do almost everything I need to do with one hand. To drive the iPhone with one hand, the thumb needs to be used to make gestures. In Gizmodo's initial use of the iPhone, they think you may need to use your index finger for typing, not your thumb. Is this also true for other gestures?
  

Despite these questions, I am still excited about the iPhone and I plan to spend some time up at Macworld tomorrow to take a look a today's version of the Hope Diamond.

Workday -- An "Old School" Launch

Earlier this week, Workday -- David Duffield's newest company -- launched. There was a lot of anticipation for this launch and I have to say, I was disappointed. And I wasn't the only one.

I haven't seen the offerings themselves so I can't comment on how good (or bad) they are. My disappointment is with regards to what I have seen on their web site and how they seem to be marketing themselves. It seems so "old school" to me. Workday talks about offering a new generation of on-demand "enterprise business services" but their approach to marketing them is very much old generation. As an example, they don't offer any free trials on their web site. Free trials are very much standard fare in this age of on-demand solutions and open source software. Apparently, they are working on this but they missed an incredible opportunity to take advantage of the PR they have received around their launch.

Workday has a very experienced -- and high profile -- management team so getting early business shouldn't be too difficult for them, but I think they should update their marketing approach, or else it is going to be a very long "work day" for them.