OK, so that’s deliberately a bit provocative but I do wonder whether actually a lot of investment in marketing might actually be better focused on creating an outstanding proposition, product and customer service. Get that right and the internet, and your customers, will do a great job of doing the marketing for you – actually a much more (cost) effective job than you ever could.
What do most of the great internet success stories (think Google, Skype, Flickr etc.) have in common? They all famously ‘spent almost nothing on marketing’. Their product or service was just so good, or innovative, that they didn’t need to push it – their customers sold it for them. Indeed, to this day, I know lots of ‘Product Managers’ who work at Google but I haven’t yet met anyone who has marketing in their job title who represents a Google service.
If your offering and customer experience is outstanding then it’s not just the benefits of viral marketing that you’ll get. Look across all forms of online marketing and you’ll do better. Search engine optimisation – you’ll do well there because presumably people will be linking to you saying how great you are. Affiliate Marketing – you’ll do well there because your conversion rates will be higher than your competitors so affiliates will want to send their traffic your way as the earnings per click (EPC) you can deliver will be higher than they can get elsewhere.
Perhaps the only two metrics that we should obsess about are 1) Customer Experience and 2) Customer Satisfaction. All the rest (like conversion and retention metrics) would then take care of themselves. And yet, of all the metrics and KPIs I ever hear discussed, these two are rarely even on the consideration list.
Maybe this is the true secret of the mythical “Web 2.0”? Forget sales and marketing and focus all your efforts on proposition, product and service development.
Vice President, Business Development & Marketing at Share Results
11 May 2006 21:23pm
Hi Ashley,
Provocative indeed! Let's not throw the baby out with the bathwater shall we?
Keep in mind when Google, Skype and Flickr came onto the scene, the marketplace was relatively uncluttered and their value proposition rang clear to their audience. It was the same in the early days of the internet, when all you had to do was build a site and customers would miraculously appear.
Yes, customer experience and satisfaction are very important pillars in any business but if they can't find you (or hear about you) on a broader scale, it'll be awfully difficult to extend services of any kind.
I think a phased go-to-market approach is important, get the word out, ensure you deliver on your brand promise (with excellent customer service and support) and always maintain a certain level of marketing to stay ahead of the competition.
Thanks for the post and I'm going to blog about it (and link back of course!) and share it with our readers as well :-)
Back at the end of the seventies (so we're definitely talking Web -15.0 here, but bear with me) I helped turn round a mail order company which had been a byword for "nightmare" within its sector.
We did this by becoming quite obessive about same-day shipping and empowering despatch people to use their initiative and send by first-class letter post if the item wasn't too heavy.
So, at a time when "allow 28 days for delivery" was the norm our stuff started turning up the next day. It was a long time before we even thought about making any claims in magazine adverts, but we noticed some definite effects fairly quickly.
One of those was that people started adopting new channels for placing their orders. They would phone, instead of sending in the magazine order form (1979, remember...). Simply including the order number, as everyone did, had little impact, but teaching by doing and delivering the service worked. Our customers changed their behaviour. The word also got around remarkably quickly. The reaction is one of delight (and still is) when the service is much better than other offerings. Delight is something which people tend to share.
I've repeated the same process several times since for different companies and can assure you it works. The mechanisms for customers spreading the word are also far, far better than they ever were, so the impact of such a campaign is much magnified.
With that in mind, I'd quibble about the subject line. This has always been one of the best methods of marketing there is, and most marketing people know it. It's just a bit of a slog to do and tends to involve touching boxes and hanging out with people who touch boxes.
About 12 months ago I was talking to the Marketing Director of a big insurer with a significant online presence about ROI of marketing. I suggested that if he gave me 25% of his marketing budget to measure and improve the customer epxerience, I could give him a better return than he got from his existing marketing spend and prove it! I suggested that marketing was a dialogue and that too many companies had forgotten that God gave us two ears and one mouth as a model for marketing. He refused my bet. It prompted me to write an article about it.
OK, so that’s deliberately a bit provocative but I do wonder whether actually a lot of investment in marketing might actually be better focused on creating an outstanding proposition, product and customer service. Get that right and the internet, and your customers, will do a great job of doing the marketing for you – actually a much more (cost) effective job than you ever could.
What do most of the great internet success stories (think Google, Skype, Flickr etc.) have in common? They all famously ‘spent almost nothing on marketing’. Their product or service was just so good, or innovative, that they didn’t need to push it – their customers sold it for them. Indeed, to this day, I know lots of ‘Product Managers’ who work at Google but I haven’t yet met anyone who has marketing in their job title who represents a Google service.
If your offering and customer experience is outstanding then it’s not just the benefits of viral marketing that you’ll get. Look across all forms of online marketing and you’ll do better. Search engine optimisation – you’ll do well there because presumably people will be linking to you saying how great you are. Affiliate Marketing – you’ll do well there because your conversion rates will be higher than your competitors so affiliates will want to send their traffic your way as the earnings per click (EPC) you can deliver will be higher than they can get elsewhere.
Perhaps the only two metrics that we should obsess about are 1) Customer Experience and 2) Customer Satisfaction. All the rest (like conversion and retention metrics) would then take care of themselves. And yet, of all the metrics and KPIs I ever hear discussed, these two are rarely even on the consideration list.
Maybe this is the true secret of the mythical “Web 2.0”? Forget sales and marketing and focus all your efforts on proposition, product and service development.
Our online site www.bobsguide.com only really took off when we got a new MD to run it. Although we were noticably more successful I didn't see the people on phones making calls that I expected. I asked if we shouldn't be doing more selling and her answer was that she saw here people as customer service staff, with the emphasis on service.
After a few years a a steady growth in sales I have to say that she has been proved dead right and I was dead wrong.
We still do marketing of course, exhibitions and the like. But one bad customer service experience is enough for you to lose a customer forever, so it remains our emphasis.
Independent Advisor - Online Travel Industry Executive at Various
16 May 2006 16:13pm
Ashley, I do here what you are saying, but actually I think it depends on your definition of "Marketing staff".
We have a very integrated marketing team here at Hotels.com were analysts, seo-experts, crm manager etc. work closely together to create a single integrated system (business) ... we find the right users at the right places through targeted marketing and take them to the relevant pages and therefore enhance their user experience.
Our analyst team is very key to understand how users interact with the site and this in turn helps us to adjust customer user flows through the site.
Just think about your "online marketing wheel/framework" - acquisition, conversion and retention are all parts managed by marketers and it needs to be closely integrated between the different functions.
I do agree that great applications/web sites generate "free" traffic ... it just depends on how patient you are and whether you just want to wait for them or push it a little bit as well ...
Daff Wilmott
Senior Editor at Cimex Media
16 May 2006 16:17pm
This argument is rolled out by every CEO in the land. Except I'd probably extend it to PR executives...
Anyway - I guess it can also depend on how innnovative a site is. If you're offering a never before offered service (ie Flickr etc), then naturally you're going to gain a lot of attention by word of mouth.
Marketing comes into its own when your trading in a crowded market. Lastminute.com's regular newsletters put it way ahead of any other travel site I use (or rather) used to use. In this case, marketing means the difference between me searching for a no frills break or opting for the more expensive option.
Youth sites are notoriously difficult to market, no matter how good your content is. Targeted marketing in key publications, on web sites and radio stations can do wonders for a site (see www.need2know.co.uk).
JUMP is Econsultancy's multichannel magazine in support of the multichannel event, JUMP. In this first issue of JUMP Magazine we focus on a number of areas that will help you to join up your business, including why brands should launch print catalogues and magazines, how to track inbound telephone calls with web analytics, emerging multichannel job roles, and why retailers need multichannel returns policies.
The Reducing Customer Struggle report, published by Econsultancy in association with Tealeaf, looks in-depth at the extent to which companies understand the overall online customer experience and the approaches or types of technology they use to identify issues and remedy them. The study also looks at which customer channels are most relevant for organizations and the relationship between online and offline business teams.
CEO at Econsultancy
11 May 2006 09:13am
OK, so that’s deliberately a bit provocative but I do wonder whether actually a lot of investment in marketing might actually be better focused on creating an outstanding proposition, product and customer service. Get that right and the internet, and your customers, will do a great job of doing the marketing for you – actually a much more (cost) effective job than you ever could.
What do most of the great internet success stories (think Google, Skype, Flickr etc.) have in common? They all famously ‘spent almost nothing on marketing’. Their product or service was just so good, or innovative, that they didn’t need to push it – their customers sold it for them. Indeed, to this day, I know lots of ‘Product Managers’ who work at Google but I haven’t yet met anyone who has marketing in their job title who represents a Google service.
If your offering and customer experience is outstanding then it’s not just the benefits of viral marketing that you’ll get. Look across all forms of online marketing and you’ll do better. Search engine optimisation – you’ll do well there because presumably people will be linking to you saying how great you are. Affiliate Marketing – you’ll do well there because your conversion rates will be higher than your competitors so affiliates will want to send their traffic your way as the earnings per click (EPC) you can deliver will be higher than they can get elsewhere.
Perhaps the only two metrics that we should obsess about are 1) Customer Experience and 2) Customer Satisfaction. All the rest (like conversion and retention metrics) would then take care of themselves. And yet, of all the metrics and KPIs I ever hear discussed, these two are rarely even on the consideration list.
Maybe this is the true secret of the mythical “Web 2.0”? Forget sales and marketing and focus all your efforts on proposition, product and service development.
Ashley Friedlein
CEO, E-consultancy.com
Vice President, Business Development & Marketing at Share Results
11 May 2006 21:23pm
Hi Ashley,
Provocative indeed! Let's not throw the baby out with the bathwater shall we?
Keep in mind when Google, Skype and Flickr came onto the scene, the marketplace was relatively uncluttered and their value proposition rang clear to their audience. It was the same in the early days of the internet, when all you had to do was build a site and customers would miraculously appear.
Yes, customer experience and satisfaction are very important pillars in any business but if they can't find you (or hear about you) on a broader scale, it'll be awfully difficult to extend services of any kind.
I think a phased go-to-market approach is important, get the word out, ensure you deliver on your brand promise (with excellent customer service and support) and always maintain a certain level of marketing to stay ahead of the competition.
Thanks for the post and I'm going to blog about it (and link back of course!) and share it with our readers as well :-)
Analyst at CxFocus
12 May 2006 13:19pm
Back at the end of the seventies (so we're definitely talking Web -15.0 here, but bear with me) I helped turn round a mail order company which had been a byword for "nightmare" within its sector.
We did this by becoming quite obessive about same-day shipping and empowering despatch people to use their initiative and send by first-class letter post if the item wasn't too heavy.
So, at a time when "allow 28 days for delivery" was the norm our stuff started turning up the next day. It was a long time before we even thought about making any claims in magazine adverts, but we noticed some definite effects fairly quickly.
One of those was that people started adopting new channels for placing their orders. They would phone, instead of sending in the magazine order form (1979, remember...). Simply including the order number, as everyone did, had little impact, but teaching by doing and delivering the service worked. Our customers changed their behaviour. The word also got around remarkably quickly. The reaction is one of delight (and still is) when the service is much better than other offerings. Delight is something which people tend to share.
I've repeated the same process several times since for different companies and can assure you it works. The mechanisms for customers spreading the word are also far, far better than they ever were, so the impact of such a campaign is much magnified.
With that in mind, I'd quibble about the subject line. This has always been one of the best methods of marketing there is, and most marketing people know it. It's just a bit of a slog to do and tends to involve touching boxes and hanging out with people who touch boxes.
CEO at Clicktools
12 May 2006 21:56pm
Ashley,
About 12 months ago I was talking to the Marketing Director of a big insurer with a significant online presence about ROI of marketing. I suggested that if he gave me 25% of his marketing budget to measure and improve the customer epxerience, I could give him a better return than he got from his existing marketing spend and prove it! I suggested that marketing was a dialogue and that too many companies had forgotten that God gave us two ears and one mouth as a model for marketing. He refused my bet. It prompted me to write an article about it.
http://www.clicktools.com/ Resources - Introducing the Chief Listening Officer.
I'm with you!
Dave Jackson
MD
Clicktools Ltd
On 09:13:06 11 May 2006 Ashley wrote:
Retired at Retired
13 May 2006 12:26pm
Our online site www.bobsguide.com only really took off when we got a new MD to run it. Although we were noticably more successful I didn't see the people on phones making calls that I expected. I asked if we shouldn't be doing more selling and her answer was that she saw here people as customer service staff, with the emphasis on service.
After a few years a a steady growth in sales I have to say that she has been proved dead right and I was dead wrong.
We still do marketing of course, exhibitions and the like. But one bad customer service experience is enough for you to lose a customer forever, so it remains our emphasis.
Bob
Project Manager at Juretic Media
16 May 2006 16:03pm
Personally I feel that we could at least sack our Chief of Marketing; Rob as he does not make tea for his colleagues.
Independent Advisor - Online Travel Industry Executive at Various
16 May 2006 16:13pm
Ashley, I do here what you are saying, but actually I think it depends on your definition of "Marketing staff".
We have a very integrated marketing team here at Hotels.com were analysts, seo-experts, crm manager etc. work closely together to create a single integrated system (business) ... we find the right users at the right places through targeted marketing and take them to the relevant pages and therefore enhance their user experience.
Our analyst team is very key to understand how users interact with the site and this in turn helps us to adjust customer user flows through the site.
Just think about your "online marketing wheel/framework" - acquisition, conversion and retention are all parts managed by marketers and it needs to be closely integrated between the different functions.
I do agree that great applications/web sites generate "free" traffic ... it just depends on how patient you are and whether you just want to wait for them or push it a little bit as well ...
Senior Editor at Cimex Media
16 May 2006 16:17pm
This argument is rolled out by every CEO in the land. Except I'd probably extend it to PR executives...
Anyway - I guess it can also depend on how innnovative a site is. If you're offering a never before offered service (ie Flickr etc), then naturally you're going to gain a lot of attention by word of mouth.
Marketing comes into its own when your trading in a crowded market. Lastminute.com's regular newsletters put it way ahead of any other travel site I use (or rather) used to use. In this case, marketing means the difference between me searching for a no frills break or opting for the more expensive option.
Youth sites are notoriously difficult to market, no matter how good your content is. Targeted marketing in key publications, on web sites and radio stations can do wonders for a site (see www.need2know.co.uk).
Dan Williamson
Cimex.com