Archive for the ‘Marketing thru Operations’ Category

Relationship Marketing Economics

Friday, January 9th, 2009

Just opened up a carton from a manufacturer we use in the Lab Store.  Every unit inside looks like this:

Bad nozzle

Here’s your challenge:

Would anybody in your business recognize this as a problem?  Or would they just shrug and transfer the item to the picking racks?

In other words, finding this, would you or an employee:

1.  Ship to the customer as is, let the customer figure it out

2.  Cut the nozzle off so customer doesn’t have to even think about it, doesn’t have to send you e-mail or call asking about it

Your answer to this question depends on:

1.  How customer-centric you / your org really is

2.  How much you understand about the financials of your business

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Lab Store: Year End Analysis

Sunday, January 4th, 2009

Some stats from the Lab Store (Background) for the year:

Processed 10,172 orders, up 3% from last year, despite a logistical problem in the business model we did not have control over (breeding of animals).  Fixed that, so should not be an issue going forward.  Merchandise Return Rate of .3% on dollars, which is quite low.

Returns cost money to process, imply negative Social feedback, and increase customer defection by creating poor experience.  We do everything we can up front to keep returns and other negative experiences from happening in the first place by screening products and actually taking action on customer feedback and analysis.  Often, we modify packaging, create our own instructions, or assemble products we know people will have trouble with.  More on this idea here: Marketing through Operations and Panic Pack!.

We retained between 75% – 87% of our best buyers depending on what time frame you use, and further improvement in these stats is pending test results.  More on this idea here: Frequent Buyer Analysis.

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Operations is Operating Just Fine

Sunday, August 17th, 2008

99.99% Up time and No Broken Links – What Else Do You Want?

Do you remember web sites when the web was ruled by engineers?  Before Marketing-oriented folks  forced issues like analytics, usability, and testing into the mix?

Just because systems are Operating within Operational guidelines doesn’t mean they’re Optimized for Marketing / Experience.  Yet often these systems are responsible for customer touch point execution in one way or another, directly or indirectly, and have measurable effects on customer value.  Call center screens and scripts.  VRU’s.  Invoices and Packing Slips.  These are the obvious ones. 

Here’s some others:  Contact Reason Codes.  Payment processing.  Inventory management.  Mail room and Address Correction.  Depending on your business model, there are probably dozens.

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Onliners Return to Start

Thursday, August 14th, 2008

With thoughts on what this means for offline media and planning

I wonder how many of today’s online marketers, and particularly the evangelists in Social, have read Permission Marketing by Seth Godin (1999) or The Engaged Customer by Hans Peter Brondmo (2002).  Why?  Because these two books tell you why Interactive is different, explain how it is different, and provide the background you need to be successful at it.  For example, they explain how Social works before Social even existed in its current form.

How could these books predict the current climate?  Because “Social” - the Interactive behavior and psychology that drives it - is what happens when you create Interactivity.  These ideas are fundamental to Interactivity, they exist regardless of the tools to enable them.

Social, the tools and applications, are simply software iterations around these fundamentals.  Software continues to morph and evolve.  But the emotions and behavior driving today’s Social activity are fundamentally no different from the emotions and behavior that drove the proper use of interactivity for Marketing in CompuServe or discussion boards or e-mail discussion lists.  Community.  Sharing.  The rules and etiquette of good Interactive relationships.

What I’ve come to realize after a lot of discussions and thought is this:

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Social for Business

Friday, August 1st, 2008

Sam Decker of BazaarVoice has posted a cogent, well-supported argument on the business benefits of social applications.  Many of the themes will be familiar to readers of this blog, including the substantial cross-functional reduction of Friction that can take place when you have this kind of data, and some of the cultural issues surrounding adoption of the data-driven culture.

Here’s what I don’t get though.  Many of these goals could be accomplished though customer service analysis and other data the company already has.  In fact, you could argue in many cases, the data you get from internal sources would be better since you could work some of the bias out of it and correlate with actual behavior.

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Free Mulch

Thursday, July 24th, 2008

So this over 50 foot long,  Y-shaped branch falls on our house and blows a hole through the roof (click pictures to enlarge).

Bottom of branch

For those of you not familiar with summer in Florida, this is a bigger deal than you might think.  First off, it rains hard almost every day.  A hole in your roof is a serious problem in terms of the potential for a lot of interior water damage.

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Chief Friction Officer

Tuesday, July 22nd, 2008

Speaking of the Friction Model, I came across an article based heavily on work done by Bruce Temkin of Forrester Research reviewing the state of the Chief Customer Officer position.  You know how I feel about this idea; this CCO function should be performed by Marketing.

Why?  Because Marketing has the ability to measure, predict, and act on the Friction in the system which causes dis-Engagement.  Heck, lots of the time Marketing (examples) causes this Friction.

Here’s an interesting quote from the article:

“This job is about helping the rest of the company improve, not taking responsibility for the improvement,” Temkin said.  “At the end of the day, you still have to have an executive team responsible for running the business.  The only way to proceed is to get customer experience embedded into what they’re doing.”

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Off to the Oriental Institute

Thursday, July 3rd, 2008

Oriental Institute

I’ll be spending next week at the Oriental Institute in Chicago leading a good ‘ol Marketing Makeover featuring Database Marketing.  While non-profit environments can be challenging from a resource perspective, fortunately there are grants available to these Institutions, and very fortunately for me sometimes these grants can be used to increase Marketing Productivity.

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Social TV

Monday, June 30th, 2008

I’ve spoken in the past about our local CBS affiliate WTSP-10 and their Moms Tampa Bay effort as a great example of “old media” that gets Social and has created something quite powerful using that ‘ol stick of theirs.

WTSP’s 6 PM newscast now features “news pics” sent in by viewers in almost every show.  They headline the story, run through the video they have, and on the way out, the anchor says,

“Here’s some pictures of the scene sent in by our viewers”.

Nice effort to be more interactive.  If I was going to Optimize it, I’d like to see it a bit more personalization, which increases the prep time, of course.  But it would be nice to hear the anchor say “Jody in Seminole sent us this picture” or something similar. 

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Marketing Bands: the Numbers

Sunday, June 29th, 2008

(A post by post index of this Marketing Bands Series is here.)

Just wanted to add a quick piece about the results of Optimizing the Bands (see Band Model) - this is the Marketing Productivity Blog after all!  Thanks Moe for the reminder

As we Optimized, there were changes in budget allocation by Band, and as a result there was an increase in Net Customer Value – the goal of the Optimization program in the first place.  For those of you not following the whole story, the budget remained constant, we simply allocated it to the highest and best use through testing.

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