It’s the end of the year and thus, ’tis the season for the annual avalanche of help wanted ads — though the avalanche certainly isn’t what it used to be.
Oftentimes, a help wanted ad will be the first impression a prospect will have of a potential employer. Professional recruiters and expert networkers typically steer job searchers away from applying for positions at companies they’re unfamiliar with and/or at companies where they don’t have any inside contacts. But the fact is, given the continued weakness in the employment market, lots of job seekers believe they have little choice but to cast a wide net.
And that’s why a well-written, transparent, enthusiastic but honest help wanted ad can give the uninitiated candidate a positive first impression. Or reinforce the positive reputation the company has already earned in the mind of the candidate previously acquainted with the hiring entity.
On the other hand, a poorly written help wanted ad, e.g., one that is too vague (what are they hiding?), one where the responsibilities are too broad (unrealistic) or one that over uses phrases like “rock star” and “super star” run the risk of turning off qualified candidates.
I wonder how many corporate HR departments consult with their corporate communications team before publishing a help wanted ad. It’s clear to me that not enough do. After all, a help wanted ad is no less a public disclosure of a company’s organizational and investment priorities, or needs, than is a news release. It gets posted on the company website, makes it way to online job sites like Indeed.com and gets shared from friend-to-friend and from one networking group to the next. A help wanted ad is visible to investors, business partners and the media.
It doesn’t get any more transparent than that. Halligan’s comment may have turned off a few Gen X’ers and lots of Baby Boomers for sure, though his intent wasn’t to offend. It was simply to be transparent and honest – better than leading people on.
Halligan is a rarity in the corporate world. Much of the time, organizations leave it up to candidates to wade through job descriptions and a company’s website to hunt for clues they hope will help them determine if they’d be a good fit or not.
Another great example of communications transparency is this job description from Vistaprint, an online supplier of printed promotional material and marketing services to small businesses:
Far from someone who has found a mid-level corporate hiding place, you will be someone ready to lead delivery and take an opportunity to step out of the ‘big company shadow’. … You should have a real or virtual portfolio of examples of work that are away from the norm of ‘managed a newsletter’, or ‘was responsible for the company intranet’.
Vistaprint’s message to candidates is loud and clear: if you looking for the back nine, you won’t find it here.
2014 is on top of us, and that means more help wanted ads will be posted in the next few weeks than any other time of the year. Companies should borrow a page from HubSpot and Vistaprint’s recruiting handbook and communicate honestly about who they are and who they are trying to attract. An employer and its reputation, as well as the job candidate, are sure to benefit in the end.
Blogs and communities are always buzzing about one form of marketing or another. And if you listen closely, you’ll notice that most of the marketing conversations going on—whether they’re about inbound marketing, SEM, affiliates, or mobile—emphasize the importance of getting new or more customers, as opposed to keeping the ones you already have.
The same trend can be seen in the way companies reward their sales and marketing staff. Those who acquire new customers are rewarded with generous commissions and recognition, whereas the ones working to retain current customers get a lukewarm pat on the back.
Now, to be clear, there’s absolutely nothing wrong customer acquisition. However, it’s unfortunate that customer retention isn’t getting the same (if not more) attention from marketers—because retention usually brings in more revenue, at lower cost.
New Business Is Great, but Repeat Business Is Even Better
It’s time for marketers to shift their focus to customer retention and loyalty, instead of putting all their eggs in the acquisition basket. The good news: doing so may actually be easier and far less costly than you think.
Not only is it more expensive to acquire new customers than to keep existing ones (acquisition costs five times more than retention, according to Lee Resource Inc.), but current customers actually tend to spend more than new ones.
And if that weren’t staggering enough for you, consider the Harvard Business School study that found “increasing customer retention rates by 5% increases profits by 25% to 95%.”
Why not crunch the numbers in your own business and see for yourself just how important repeat customers are for your company? Quantify your customer acquisition spend vis-à-vis retention, and take note of the revenue that new customers bring in versus how much your existing customers are spending.
First Step in Retention Marketing: Calculate CLV
Now that you’ve established the significance of retention marketing, it’s time to get started on what you can do to retain more customers. Before you start rolling out customer retention campaigns, though, you need to figure out how much you should spend on your customers to maximize your profits.
The first step in setting a budget for your marketing campaigns is measuring customer lifetime value (CLV). You need to find out how much value each customer brings into your business so you can determine exactly how much you should be spending on them.
You can use a variety of CLV equations to calculate the value of your customers. Management Accounting Quarterly, for instance, shares this formula (PDF), where it incorporates contribution margin, marketing cost, and probability of purchase to calculate CLV.
KISSmetrics, on the other hand, uses three CLV equations and averages the amounts to arrive at a final CLV.
Note that CLV depends on various factors, including business type, the nature of its customers, as well as the industry that the company belongs to; accordingly, there isn’t one universal formula that you can adopt. That’s why you should look into various equations and use the ones that incorporate metrics relevant to your business and industry.
You can also seek the help of companies that specialize in data and marketing and let them create a customized CLV approach for you.
Action Steps to Retain Existing Customers
Once you’ve established your budget, the next step is to decide where and how to spend it. Here are a few ideas to get you going.
The best way to build loyalty with your customers is to make them feel valued. Don’t treat customers like numbers on a spreadsheet. Regard them as individuals by personalizing your correspondence with them (e.g., emails or website greetings that mention their name), or by adding thoughtful touches to your communications with them (e.g., handwritten notes and birthday cards).
You can also customize the offers or website experiences that you provide. Gather as much data as you can about your customers. Track their site behavior, purchase history, demographic information, etc., and use that data to create personalized experiences for them.
For instance, if you know that the person browsing your site is a female who bought shoes from your store in the past, then you should display relevant product recommendations on your site instead of a generic one-size-fits-all page.
The same goes for the discounts and offers you give out. If the data tells you that Person A has a higher chance of purchasing when given a free-shipping coupon, and Person B will appreciate a 20% discount more, then send out a different offer to each customer to increase your conversion rates.
Consider optimizing the timing of your offers as well. Segment your customers according to the time of day that they made a purchase, and reach out to them when they’re most likely to buy.
2. Track and Test
Remember to monitor the performance of your retention campaigns. If you’re sending personalized offers, be sure to take note of the sales that those offers brought in. When you’re personalizing the timing of your offers or messages, track open rates and clicks, then compare them with those of previous campaigns.
Not seeing the best results? Perhaps you need to resegment your customers, change your messaging, or incorporate more data. It could also be a sign that you need to move on to another type of campaign. In any case, the only way to find out is by tracking and testing.
When you’re at this stage, you also need to make sure that you’re setting the right metrics. Getting 10,000 signups in one day may sound sexy, but if those users don’t amount to actual sales, then it probably isn’t worth tracking.
Always be clear on the metrics that count (it could be sales per customer, or rate of repeat purchases, or something else) and monitor only the numbers that matter.
3. Reward loyal customers
The great thing about loyal patrons is that they don’t just give you repeat business, they can bring you new customers as well. Extremely satisfied customers are more than likely to recommend companies to their friends. Encourage this practice by rewarding the people who send new business your way.
You don’t have to create an elaborate referrals program or offer huge monetary rewards to customers if you don’t have the resources to do so. A relevant offer or a token/freebie that you know they’ll love will go a long way.
Be genuine, and remember that simple, yet thoughtful, gestures toward your customers will be recognized.
4. Ramp up your customer service
Providing excellent customer service should be a no-brainer, but some companies don’t seem to spend enough of their resources on their customer support department, instead pouring everything into Sales and Marketing.
Remember, your sales and marketing team can perform a stellar job in bringing in new people, but if your support reps aren’t doing enough to keep those customers, you’re just wasting your resources.
Again, it boils down to showing your customers just how much you value them. Be respectful, treat them well, and go above and beyond to solve their problems. And if you think about it, the bar for customer service is set really low. People don’t expect much from support teams these days, so if you step up and blow them away with amazing customer service, it won’t be ignored.
More corporations are taking some of the responsibilities previously handled by their public relations and advertising agencies back in-house. Regarding PR agencies, it’s no longer breaking news that many clients have taken their social media activities inside. But a recent report by The Association of National Advertisers (ANA) says that the expansion of in-house marketing and marketing communications capabilities includes bringing creative strategy in-house as well – a red flag for ad agencies.
About 60 percent of the clients who participated in the ANA study say they are using in-house marketing capabilities vs. five years ago when 42 percent reported the same;
More than half of the clients polled say they have taken assignments that were traditionally the responsibility of their agencies back in-house;
40 percent brought creative strategy in-house, which as Lee points out “has been a key agency capability and attraction to clients,” and
Almost 70 percent run their social marketing programs in-house.
For those of us experienced enough to have seen the rise and fall of in-house agencies, and now their apparent resurgence … well, it’s been an interesting ride. During my years with once great computer manufacturer Apollo Computer, Inc. (acquired by HP in 1989), I was part of a dynamic in-house marketing communications team that had a level of enthusiasm, sense of purpose, work ethic and urgency as impressive as any agency I’ve seen since.
The team was as big as some small to mid-size agencies and included:
– Up to nine PR pros handling all corporate communications, all media and industry analysts relations and support at events and trade shows. We didn’t call it “content development” then, but the PR team was largely responsible for developing a significant amount of the marketing content, from by-lined articles to white papers and speeches to press releases and customer success stories.
– another half-dozen or so copy writers, designers and other creative people. All sales literature, customer brochures and product sheets, other promotions, themes for trades shows and employee conferences, etc., all done in-house. While there was an advertising agency on retainer, that agency acted as an extension of the internal team.
– a significant events team produced and set up every trade show, from negotiating trade show booth space to overseeing the unions setting up the booths on the showroom floor.
All were part of the same team and reported into the same management. It was a great model that worked at the time. Despite its great run, however, a similar model today would have more disadvantages than it does advantages.
Lee makes the point that an in-house agency works “right at the heart of a brand” vs. agency staffers who are outside looking in. Somewhat sarcastically, he calls power, influence and control the “eternal Corporate Aphrodisiacs.” And he’s right.
But at the same time, in-house agencies can be at risk of becoming too internally focused. For those of us who have spent any amount of time on the client side, we know that the eternal meetings, time spent building consensus, bureaucracy and politics can chew the days and weeks away and relegate the creative process to the back burner.
One of the greatest advantages of working with an outside agency is the broader, external view and opportunity to learn from the campaigns of the agency’s other clients — best practices and also the campaigns that went bust, so what not to do. In addition, agency people make it part of their business to know what’s coming around the next corner, marketing trends and new technology platforms that can help propel a client’s campaign.
And finally, an agency team makes the internal team stronger and vice versa. An ambitious and competitive agency team can push an in-house team to stretch outside its comfort zone, and the best in-house teams will respond in kind.
What do you think? Do external agencies make internal teams do their best work?
The west and east coasts of the US have drawn competitive comparisons for aboutq as long as they’ve existed. At least that’s how it feels to this extreme east coaster.
Whether you were raised on the west or the east coast, chances are you are passionate about the things that make each coast distinct, the things for which each coast have earned their distinct reputations. Which coast has the best waves for surfing, the best snow for skiing, the better communities for raising families, the coolest home-grown music? And on and on.
The comparisons grow even more intense when you’re talking tech. Which coastal universities turn out more talented engineers and entrepreneurs, Stanford or MIT? Harvard or UC at Berkeley Haas School of Business? And is Silicon Valley or Boston/Cambridge spawning more innovative companies? Which is the best area to do business in?
Strange thing is that here on the east coast, it certainly doesn’t feel like Boston/Cambridge has lost its mojo – at least not as completely as some claim. Even McKenzie says the view of Boston from Silicon Valley is very different, and that once you get a chance to visit some of the incubators and the community of entrepreneurs working in places like the Cambridge Innovation Center where there’s almost always a waiting list for office space, you’ll feel the vibrancy and sense of urgency.
I wouldn’t say McKenzie is bullish on Boston’s chances for improving its position in the next Startup Genome Report. But he does concede that the region “is in the process of bolstering a robust ecosystem strong enough to stop its slide down the rankings.”
As a dyed in the wool east coaster, I’m bullish on the region’s tech scene stopping its apparent slide and also on Boston fighting its way back to its rightful position as the clear no. two tech town in the US.
And I don’t stand alone on this. Take, for example, Mark Held, the CEO of startup Weft. Held recently relocated his firm from San Francisco to Boston citing the areas ecosystem of enterprise tech startups, the talent graduating from area colleges and universities and the quick commute to NYC.
Burton said that if a tech company founder doesn’t come out of a well known company or school, then getting attention on the west coast is harder.
Echoing Burton in the Boston Business Journal, Cathy Wissink, director of Microsoft’s tech community outreach division in Cambridge and a recent east coast transplant, said, “The energy here is remarkable in terms of startups, venture capitalists and innovation” and emphasized the big number of students engaged in the Boston tech scene.
Boston/Cambridge tech or Silicon Valley tech? East coast vs. west? Well, it’s a silly debate and we really don’t have to choose, do we? When both do well, everyone wins. After all, a rising tide lifts all boats.
This post originally appeared on Forbes.com on Nov. 21, 2013, and is authored by Davia Temin, who writes about reputation matters: crisis, leadership and strategy; and Ian Anderson.
Thought leadership, branded content, content marketing, and native advertising are all stops along the continuum of how ideas are expressed, and products are marketed, over the Internet.
Last week, “Google Search: Reunion,” a mesmerizing 3-minute video from Google India, blazed across social media, gaining over 5 million hits in just a few days. Intensely moving, unique, and believable, it tells a story of two friends separated in youth by war and government partition, who found one another in old age through the help of their grandchildren and Google. It brought most people who viewed it – and believed it – to tears.
One reason it is so very effective is that it feels real, and there is certainly nothing in the clip to announce that it is anything but a true story. But of course it is an ad promoting Google in India and features actors, not real people. It blurs the line between truth and fiction, authenticity and acting on social media – masterfully.
And that is just a taste of what is to come.
Church and State
In traditional media, there has always been a bright line between journalism (unsponsored, objective reporting and analysis that purports to uncover the truth, tell true stories, and be dedicated to the “public good”) and advertising (sponsored messages that have a point of view and benefit an organization, its products, or services). In fact, the Association of Magazine Media used to monitor the line between “church” and “state” closely – making sure that readers always understood which was which.
But this line has gotten mightily blurred in the world of social media. And that is not necessarily a good thing for a credulous, but trust-averse, public.
Unbiased, non-commercial research, commentary, stories, recommendations and reporting still are accorded more value – and trust – than marketing messages. But that does assume the public can tell the difference.
Have the reviews of the book you’re interested in on Amazon been commissioned, or are they authentic? Have the news stories you are reading on a website been written by a reporter, or a sponsored “news aggregator” somewhere overseas? Is that photo that touches you so much real, or Photoshopped?
On social media, most participants are looking for authenticity, but swimming in a sea of ambiguity.
What does content really mean?
And so, how does this affect corporate social media? Content has been proclaimed the coin of the realm in social media, but is that content church, state, or somewhere in-between? How do your viewers react now, and how will that change in the future?
Is the content your company produces, and posts on social media, thought leadership, branded content, content marketing or native advertising? And what is the most effective for your corporate needs?
Perhaps some definitions (and they are not easy to come by) can help illuminate the differences among thought leadership, branded content, content marketing, native advertising, and straight online marketing:
Thought leadership is the platinum standard of content-based reputation enhancement. In its pure form, it is information, research, ideas, expert commentary, and opinion that exist for their own sake, not to prove a direct commercial point.
Thought leadership can also be “viral” in that it provides new and interesting insights that can spark industry change. It can be used to raise brand awareness through sharing articles, white papers, and other thought leadership content with a broad audience.
Branded content is less platinum-standard, but arguably more fun, and effective with larger audiences. According to Wikipedia, it’s a fusion of advertising and entertainment, “intended to be distributed as entertainment content, albeit with a highly branded quality.”
This content might be humorous, entertaining, or interesting. While it doesn’t create the same kind of lasting, game-changing intellectual impression that thought leadership aspires to, it can be innovative in other ways. Much of what we see in online marketing is branded content: from videos, to contests, to hybrid campaigns that involve many different elements.
Branded content is often a bit more subtle than straight advertising – sometimes the content doesn’t have any images of the product itself, but is still trying to sell you something, or sell you the brand. This is the case with many YouTube campaigns that produce highly entertaining videos for marketing purposes.
Content marketing is the broadest category of all, encompassing “any marketing format that involves the creation and sharing of media and publishing content in order to acquire customers.” It includes everything from thought leadership to branded content, but is more direct in its commercial intent.
It is a broad type of marketing that includes the “sponsored or promoted post” advertising found on Twitter, Facebook, Pinterest, etc. Content marketing is often the means by which you “push” the branded content or thought leadership you wish to promote, and try to get your followers to interact. This can come in the form of posts, tweets, and even videos (like the Old Spice Channel, for example).
Straight Online Marketing
Straight online marketing comes in the form of the most basic online advertisement. This is a step below ‘content marketing’ and includes the sidebar ads we see all the time, as well as banner ads, pop-ups, advertisements before videos, and other kinds of online content that we usually consider junk. This kind of marketing can be successful when done very well – much like ads on billboards or commercials on television. However, the public is building up resistance to this kind of content.
Native advertising is a subset of branded content, and the most problematic: it is advertising that masquerades as independently created content.
For example, on BuzzFeed, articles that are sponsored sit side by side articles that are not, and they look almost the same. These are articles that look as though they have been independently written, but were produced to market something. So, the Google Reunion video ad would qualify as native advertising.
As with Reunion, native advertising is often highly successful, with many “articles” gaining thousands of shares and millions of views. But much of the success may be a function of people not looking carefully to see that they are sharing product or brand promotions. Often, people will retweet BuzzFeed’s lists with only a glance at the article, so even if the content is labeled as from a “partner,” folks on social media might not be aware that they’re effectively sharing an advertisement.
It hurts. But it’s hogwash. Thankfully, I have resolve, staying power and a thick skin. I keep reminding myself that at 107 years old, I am battle tested and a true survivor.
How do you think Business Wire grew over the last 50-plus years to become a company that employs over 500 people in 32 bureaus around the world? Well, it happened on my back. And don’t forget that the Oracle of Omaha acquired Business Wire more than seven years ago and is now enjoying more growth as a subsidiary of Berkshire Hathaway. So if Warren Buffet sees business value in me and recognizes that I’m able to adapt and morph and even thrive in the constantly changing world of news distribution and communications, well then dismissing me seems like a bad idea.
What about PR Newswire, the other big distributor of press releases? PR Newswire, which is also more than 50 years old, provides service to tens of thousands of corporate clients around the world. PR Newswire, Business Wire and the entire community of news distribution companies that includes Marketwired, PRWeb and dozens of free services all have one thing in common: they built their reputation and their business on my back.
Hey look, I’m not saying that I’m the be all and end all. But if you use me in a thoughtful and strategic way like you do with your blogs and emails and tweets and whitepapers and eBooks — you know, as part of your targeted content plan and not indiscriminately like I see so many companies still doing while giving me a bad name in the process (aka spam), then I am going to deliver results for you.
I promise. That’s my story and I’m sticking to it.