Friday, May 16, 2014
Monday, March 14, 2011
The Value of Verticality
When selling a product or service, what's the value in verticality? That is, why orient marketing around specific "vertical markets", i.e. those that share a number of specific characteristics like mission, products, customers, etc.? Your product is your product, it probably doesn't significantly change from one market to the next. Shouldn't that be the most important thing?
Since I asked the question, obviously the answer is "No". Sure, the product's stability across markets is fine, but is ultimately irrelevant. What matters far more is how the product is perceived by the potential customers out there. How does it (the product) address their key issues? What are their key issues anyway? Are those issues always homogeneous?
Verticality acknowledges that the filters that otherwise similar prospects use to gauge the utility of your product is of fundamental importance and that by segmenting by these filters, you can provide more useful and persuasive information. What one group sees as the best feature ever may be of little consequence to another, even though both might find the overall solution to be perfect for their needs. But if I use messaging intended for one to change the behavior of the other I will likely be sorely disappointed at the end of the quarter.
Going vertical is all about gaining more intimacy and immediacy with important cohorts and recognizing those differences, which is what we're supposed to be doing in marketing anyway.
Happy Marketing!
Since I asked the question, obviously the answer is "No". Sure, the product's stability across markets is fine, but is ultimately irrelevant. What matters far more is how the product is perceived by the potential customers out there. How does it (the product) address their key issues? What are their key issues anyway? Are those issues always homogeneous?
Verticality acknowledges that the filters that otherwise similar prospects use to gauge the utility of your product is of fundamental importance and that by segmenting by these filters, you can provide more useful and persuasive information. What one group sees as the best feature ever may be of little consequence to another, even though both might find the overall solution to be perfect for their needs. But if I use messaging intended for one to change the behavior of the other I will likely be sorely disappointed at the end of the quarter.
Going vertical is all about gaining more intimacy and immediacy with important cohorts and recognizing those differences, which is what we're supposed to be doing in marketing anyway.
Happy Marketing!
Tuesday, August 31, 2010
A Better Way to Qualify Prospects
When gathering data about recent visitors to your site, it's often helpful to ask about how they came to your site. But as we're finding more and more, folks are growing tired of answering these sorts of qualifying questions. So do keep them to an absolute minimum. But that doesn't mean you can't learn something about how they came to you. Here's what you do: Create customized landing pages for your site visitors.
By creating a page upon which your visitors land that relates to the link they used to find you, you can accomplish a number of different things. First, of course, you can know where they came from. An advert on espn.com? A link from a blog posting? All can be tailored, tweeked, and otherwise crafted to allow you to gain some insight into which entry points drive the best/most traffic.
Second, you can tailor the arrival message to better match the expectations created by the link that the prospect followed. That is, if you created an ad talking up a special deal on your product, then the first thing the prospect should see is information related to that offer. This will do wonders to improve your conversion rate and reduce your bounce rate since the prospect is immediately provided with the information they came in search of. Don't think for a minute that people will spend much time searching for the information you promised them. Adding even one more click will have a double digit negative impact on conversion and bounce rate.
Third, by minimizing the number of questions that don't directly lead to benefit for the prospect, they'll be more likely to provide reasonably good data for the questions that remain. I don't know about you, but I've seen more than a few email addresses that belong to asdf@abc.com. Make life easier and more value-laden for your visitors and you'll be more likely to find out that asdf is actually Tom D. You're more likely to close the deal with Tom than with asdf.
Keep it short, keep it critical, and think how you can gather the information you really need from the prospect's behavior and you'll have taken an important step on the road to optimizing your site's performance.
By creating a page upon which your visitors land that relates to the link they used to find you, you can accomplish a number of different things. First, of course, you can know where they came from. An advert on espn.com? A link from a blog posting? All can be tailored, tweeked, and otherwise crafted to allow you to gain some insight into which entry points drive the best/most traffic.
Second, you can tailor the arrival message to better match the expectations created by the link that the prospect followed. That is, if you created an ad talking up a special deal on your product, then the first thing the prospect should see is information related to that offer. This will do wonders to improve your conversion rate and reduce your bounce rate since the prospect is immediately provided with the information they came in search of. Don't think for a minute that people will spend much time searching for the information you promised them. Adding even one more click will have a double digit negative impact on conversion and bounce rate.
Third, by minimizing the number of questions that don't directly lead to benefit for the prospect, they'll be more likely to provide reasonably good data for the questions that remain. I don't know about you, but I've seen more than a few email addresses that belong to asdf@abc.com. Make life easier and more value-laden for your visitors and you'll be more likely to find out that asdf is actually Tom D. You're more likely to close the deal with Tom than with asdf.
Keep it short, keep it critical, and think how you can gather the information you really need from the prospect's behavior and you'll have taken an important step on the road to optimizing your site's performance.
Wednesday, August 18, 2010
How is Triathlon Like Marketing? Part III - the Transition
As part of an ongoing series of posts likening marketing to triathlon, I've been reviewing some key similarities and how this analogy can help your marketing team perform like an Ironman.
In triathlon, transitions are those parts of the race where the athlete moves from one discipline to another - from swim to bike or bike to run (or the all-important from run to ambulance to beer truck!). Races can be won or lost during these changeovers, with precious seconds ticking by as helmets get donned or swim goggles doffed. In marketing, transitions are those phases where we implement significant changes to a key element of the marketing mix - perhaps a product introduction/deletion, a new distribution channel added, or an old sponsorship dropped in favor of a new one. As with the sport, transitions are where you're most likely to see costly bobbles that change the leader board in significant ways.
The key to a successful transition is focus. As we look forward to the next activity, it's easy to shift our attention to what comes next. After all, if we've done well so far, we want to press home our advantage. If we're behind, we want to make up ground and show that we can win. But this desire to "get on with it" leaves us vulnerable to failing to close loops that are critical for moving ahead. This could be a simple failure to talk with an existing customer about how their future purchases might be impacted by the launch of a new product designed to replace the item they currently use. Where a proactive call or visit might smooth the way for adoption of the new, playing catch up just means lots of unnecessary angst and an opportunity to competitors to move in.
How do you ensure that the transition goes smoothly, then? First, take the time to plan in in/out phases. Practice the plan (set up your bike and stuff on the ground and pretend to transition from swim to bike, for example) or virtually (get the critical staff together and have a walk through on who does what, when, who communicates updates, etc.). Second, look for opportunities to reduce the complexity of the changeover. That is, remove unnecessary steps. Avoid scheduling other priority activities at the same time, and be sure everyone with a role to play will be available. And lastly, design the change to take as little time as possible. A condensed timeline means less opportunity for distraction. Don't accelerate faster than the market allows, of course, just don't dilly-dally around.
A well-executed transition means you can add significant competitive pressure and increase the duration and effectiveness of your advantage. As with all things, go in with a well-considered plan, execute according to your rehearsal, and keep your attention firmly focused on the here and now, even as you look around to make sure no one is getting away while you put on your socks.
Transitions - not glamorous or sexy, but absolutely important in maintaining and building competitive advantage.
In triathlon, transitions are those parts of the race where the athlete moves from one discipline to another - from swim to bike or bike to run (or the all-important from run to ambulance to beer truck!). Races can be won or lost during these changeovers, with precious seconds ticking by as helmets get donned or swim goggles doffed. In marketing, transitions are those phases where we implement significant changes to a key element of the marketing mix - perhaps a product introduction/deletion, a new distribution channel added, or an old sponsorship dropped in favor of a new one. As with the sport, transitions are where you're most likely to see costly bobbles that change the leader board in significant ways.
The key to a successful transition is focus. As we look forward to the next activity, it's easy to shift our attention to what comes next. After all, if we've done well so far, we want to press home our advantage. If we're behind, we want to make up ground and show that we can win. But this desire to "get on with it" leaves us vulnerable to failing to close loops that are critical for moving ahead. This could be a simple failure to talk with an existing customer about how their future purchases might be impacted by the launch of a new product designed to replace the item they currently use. Where a proactive call or visit might smooth the way for adoption of the new, playing catch up just means lots of unnecessary angst and an opportunity to competitors to move in.
How do you ensure that the transition goes smoothly, then? First, take the time to plan in in/out phases. Practice the plan (set up your bike and stuff on the ground and pretend to transition from swim to bike, for example) or virtually (get the critical staff together and have a walk through on who does what, when, who communicates updates, etc.). Second, look for opportunities to reduce the complexity of the changeover. That is, remove unnecessary steps. Avoid scheduling other priority activities at the same time, and be sure everyone with a role to play will be available. And lastly, design the change to take as little time as possible. A condensed timeline means less opportunity for distraction. Don't accelerate faster than the market allows, of course, just don't dilly-dally around.
A well-executed transition means you can add significant competitive pressure and increase the duration and effectiveness of your advantage. As with all things, go in with a well-considered plan, execute according to your rehearsal, and keep your attention firmly focused on the here and now, even as you look around to make sure no one is getting away while you put on your socks.
Transitions - not glamorous or sexy, but absolutely important in maintaining and building competitive advantage.
Tuesday, August 3, 2010
How is Triathlon like Marketing? Part II
With all the prep and planning that underlie success in both marketing or triathlon, the rubber really meets the road once the gun goes off. The first portion of a triathlon is a swim. The frenzy of arms and legs thrashing about is not too dissimilar to those first moments of a new product hitting the market. There's confusion, relief at getting started, some blows to the head, and an understanding the critical mistakes made at this point will have a lasting impact, but may not be ultimately fatal - if you keep your wits about you.
Practically, there are some other similarities. For instance, many times the swim takes place in a river or lake and involves a couple of changes in direction. This requires that the athlete actually break form and look up once in a while to make sure they're on course. In marketing, sometimes we're so busy executing our plans that we fail to look around and see what's happening - and by this I mean check the data that can provide real-time feedback so that we can, like the swimmer, alter our course if needed. I've noticed that many companies have "swum" themselves into a giant pickle by not planning to look around and check the data periodically. They are simply committed to executing the plan, one step at a time, so they can check action items off the to-do list. Bad idea.
For the triathlete, the data is simple - look up and see if the big orange buoy is directly ahead of you. For marketers, it isn't usually quite so easy. Examples might include sales (duh), the number and quality of prospects at certain gateway points, conversion rates, press/review mentions, etc. All in all, a combination of several data elements is typically the best idea. The best part is that, unlike the swimmer, who when she checks her position she'll become less mechanically efficient for a short moment, marketers shouldn't see a measurable loss of momentum if they lift their heads up to look around - at least not if they've begun the process of execution with the thought of periodic position checks in mind.
The triathlon swim also presents another interesting similarity. The muscles used in swimming are not, by and large, the same as those required for the bike and run. Driving especially hard during the swim will require some amount of our energy reserves, sure, but tired arms and shoulders shouldn't keep you from running or biking fast. Different muscles, different disciplines. Marketing, especially for new product introductions, is similar in that the critical early efforts to build buzz, engage the thought leaders within the community, etc. require a different emphasis early than they will later on, once the product is fully established.
The best marketers, then, are those that know a transition is coming as well as what the upcoming key activities will be and will prepare for them. Transitions - the topic for next time. Till then, keep the pedals turning and attack every hill like it wants to hurt your mama!
Practically, there are some other similarities. For instance, many times the swim takes place in a river or lake and involves a couple of changes in direction. This requires that the athlete actually break form and look up once in a while to make sure they're on course. In marketing, sometimes we're so busy executing our plans that we fail to look around and see what's happening - and by this I mean check the data that can provide real-time feedback so that we can, like the swimmer, alter our course if needed. I've noticed that many companies have "swum" themselves into a giant pickle by not planning to look around and check the data periodically. They are simply committed to executing the plan, one step at a time, so they can check action items off the to-do list. Bad idea.
For the triathlete, the data is simple - look up and see if the big orange buoy is directly ahead of you. For marketers, it isn't usually quite so easy. Examples might include sales (duh), the number and quality of prospects at certain gateway points, conversion rates, press/review mentions, etc. All in all, a combination of several data elements is typically the best idea. The best part is that, unlike the swimmer, who when she checks her position she'll become less mechanically efficient for a short moment, marketers shouldn't see a measurable loss of momentum if they lift their heads up to look around - at least not if they've begun the process of execution with the thought of periodic position checks in mind.
The triathlon swim also presents another interesting similarity. The muscles used in swimming are not, by and large, the same as those required for the bike and run. Driving especially hard during the swim will require some amount of our energy reserves, sure, but tired arms and shoulders shouldn't keep you from running or biking fast. Different muscles, different disciplines. Marketing, especially for new product introductions, is similar in that the critical early efforts to build buzz, engage the thought leaders within the community, etc. require a different emphasis early than they will later on, once the product is fully established.
The best marketers, then, are those that know a transition is coming as well as what the upcoming key activities will be and will prepare for them. Transitions - the topic for next time. Till then, keep the pedals turning and attack every hill like it wants to hurt your mama!
Monday, July 26, 2010
How Marketing is Like a Triathlon, Part 1
Perhaps more than any other discipline in business, marketing requires a multidisciplinary world view and tool-kit. I think this accounts for my observation, admittedly unscientifically founded, that marketers represent a disproportionately high percentage of triathletes. This may be due more to a form of brain damage, though I think that it may instead lie in the similarities between marketing and triathlon.
First, success in both requires a commitment to the long term. Both require a multiyear planning horizon, each broken into shorter mesocycles, each with a different emphasis. Building strength, endurance, technique take as long as building brand recognition, customer loyalty, and market share. Each also requires a number of tools and disciplines to achieve, so comfort with complexity are the norm for marketer and triathletes. This complexity can diffuse effort and focus on end results, so a strong sense of the goal and where we are in the training/business cycle are critical.
Marketers and triathletes are also subject to a continuing, almost overwhelming barrage of new tools and technologies that purport to help them reach their goals faster/easier/cheaper than ever before. So the ability to separate value from hype are critical for saving the time, money, and energy that might otherwise be spent on shiny new, useless, junk. Between the two, I'm not sure who's subjected to more unsubstantiated new product introductions, but it's pretty close to a dead heat. There's quite a lot of hype about social networking now that promises to radically change marketing (true) and make every other tool obsolete (not very likely). Much of that hype sounds like the promises of equipment manufacturers extolling the virtues of aerodynamic triathlon stuff - from bikes to helmets to water bottles. The ability to avoid getting swept away by the promise of an easier life is critical, just as important as recognizing a new tool/technique that can in fact act as a game changer. In either case, marketers and triathletes (the successful ones, anyway) are especially good at discerning the difference.
Next time: Part II - Marketing is like swimming in a muddy, debris-filled river
First, success in both requires a commitment to the long term. Both require a multiyear planning horizon, each broken into shorter mesocycles, each with a different emphasis. Building strength, endurance, technique take as long as building brand recognition, customer loyalty, and market share. Each also requires a number of tools and disciplines to achieve, so comfort with complexity are the norm for marketer and triathletes. This complexity can diffuse effort and focus on end results, so a strong sense of the goal and where we are in the training/business cycle are critical.
Marketers and triathletes are also subject to a continuing, almost overwhelming barrage of new tools and technologies that purport to help them reach their goals faster/easier/cheaper than ever before. So the ability to separate value from hype are critical for saving the time, money, and energy that might otherwise be spent on shiny new, useless, junk. Between the two, I'm not sure who's subjected to more unsubstantiated new product introductions, but it's pretty close to a dead heat. There's quite a lot of hype about social networking now that promises to radically change marketing (true) and make every other tool obsolete (not very likely). Much of that hype sounds like the promises of equipment manufacturers extolling the virtues of aerodynamic triathlon stuff - from bikes to helmets to water bottles. The ability to avoid getting swept away by the promise of an easier life is critical, just as important as recognizing a new tool/technique that can in fact act as a game changer. In either case, marketers and triathletes (the successful ones, anyway) are especially good at discerning the difference.
Next time: Part II - Marketing is like swimming in a muddy, debris-filled river
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