RENEGADE THINKING from the Founder/CEO of Renegade AND the author of "The CMO’s Periodic Table: A Renegade’s Guide to Marketing."

How SAP Ariba’s CMO Made Procurement Awesome

07/19/16

alicia_tillmanWhen SAP acquired Ariba a few years back, newly appointed CMO Alicia Tillman was faced with the challenge of rebranding the company to include the qualities of both SAP and Ariba. Next, she had to consider how to best communicate SAP Ariba’s new brand identity to customers. It’s no surprise that social media, one of today’s most effective tools of communication, was instrumental in the rebranding initiative. Alicia and her team applied creativity and simplicity to their social content to better inform customers of the intersection between SAP and Ariba. I had the pleasure of speaking with Alicia and hearing more about how her marketing team used social to build brand image, and whether or not she considered SAP Ariba a social enterprise.

Drew: Tell me a bit about your job at SAP Ariba.

Alicia: I’m the chief marketing officer for SAP Ariba, which is the largest B2B network in the world, and part of the Business Networks and Applications group within SAP. Think of us as the Facebook or eBay for business. Essentially, what we’ve created is a dynamic, digital marketplace where buyers and suppliers can find each other, making it easy to buy and sell business goods and services within companies of all sizes. I oversee all of marketing for the business, which includes brand awareness, pipeline generation and acceleration, events, digital and social strategies and field marketing.

Drew: I know Ariba has undergone some major changes in the last few years. One of those being your introduction to the company as CMO. Can you speak to those changes?

Alicia: Ariba was founded in 1996 and was really the first B2B marketplace. Initially, the company focused on automating the procurement function through online catalogs and auctions. Today, it is the largest, most global business network and touches every aspect of commerce. About four years ago, the company was acquired by SAP. That is, as you point out, a lot of change. But the company’s brand really hadn’t evolved to reflect it and it was one of the first things I focused on when I joined the company. My first priority was to assemble a ‘brand voice’ team that represented each functional area of the business so I could hear about the key aspects of our brand that made us great and brought differentiated value to our customers.

Drew: How has your team used social media to facilitate the rebranding of Ariba?

Alicia: With the rebranding of SAP Ariba I sought to make things easily understood – our look and feel, our messaging, our brand promise and the way in which we interact with customers. Social is an ideal way to facilitate this because it forces you to be simple, but it also allows you to be highly creative and to engage with your customers on totally new levels.

Let me give you an example. Earlier this year, our CEO met with one of our customers who had just launched an SAP Ariba project inside her company. She was wearing a shirt that said “Procurement is awesome,” and our CEO loved this slogan. We launched a social campaign around it – #MakeProcurementAwesome – because procurement is digital. SAP Ariba is fueling this and it’s a powerful and witty way to draw attention to our new brand identity without being forceful. It has served as a rally cry for our employees and our customers who are ultimately striving to achieve the same goals.

Drew: Have you been able to extend this idea?

Alicia: It has spread quickly because it is simple and speaks to the heart of so many of our customers. We launched it during our marquee buyer event this year and the response was so overwhelming, we actually had t-shirts printed that we could give away on the last day. And many of our customers immediately put them on and posted pictures on Facebook, Instagram, and Twitter. It’s a clear example of community and the power of social. When you use it the right way, a way that really appeals to people’s emotions, you can change perceptions and drive a brand story.

Drew: How do you judge success on a program like this?

Alicia: Simply put, by the dialogue it creates. We have seen so many customers run off with it on their own and create conversations in various forums. Customers are using the hashtag to shift the perception of procurement from a back office task to a strategic initiative. It has created excitement among our customers about our solutions and what we can do for them.

Drew: Your challenge was not only to innovate, but also apply this innovation to thinking about procurement. From a social standpoint, is it on your agenda to be a social business? Does Ariba use social as an enterprise and are you focusing heavily on social listening?

Alicia: Absolutely. We live in a world where there are officially more connected devices than people. so every enterprise has to be social. There are various listening posts in the social environment that we use to stay on top of what our customers are saying. But beyond this, we’ve built social technology into our solutions and business network that allows our customers to immediately share feedback with us. We’ve created a community called Ariba Exchange, for instance. Thousands of customers use it to share information and best practices that help them drive adoption of our solutions, and do their jobs better.

Drew: Can you provide an example of how you were able to use your closed customer network to make product changes or enhancements?

Alicia: Ideas can come from anywhere. And many of the best ideas come from the powerful community that we have built in the Ariba Network, in which over two million companies are part of. We recently launched Ariba Community Voting, a program that allows our customers to tell us what features they value most. Voting is done right from the solutions they use every day by clicking a “like” button. We compile this information and use it to prioritize our investments and drive future enhancements.

Drew: What kind of goals would you set for your organization in terms of social and becoming a social enterprise?

Alicia: Social has become the leading manner in which we market today. If I think back to a little less than 10 years ago, social was becoming something that was actively debated within companies. Now, the question is how do you now evolve your marketing budget to effectively have a presence and utilize it in the manner that is beneficial to your business. With the demographic changes of the incoming workforce, social is increasingly becoming the best method of communication – to influence and support buying decisions. We use our platforms to transact, to buy, and to gain influence.

Drew: For marketers, what do you think will be the biggest challenges in this move to social?

Alicia: I think the biggest challenge for marketers today is really about how you best define a digital strategy by measuring what it has the ability to influence. There has to be an understanding that digital is a business driver, it sets the experience a user has with your organization from the moment they begin their search to find a partner who can meet their needs. Think about everything from the experience of your website, to how you use social platforms to extend your story to how that translates into marketing collateral and events. PR, advertising and sponsorships all need to connect to form this experience – digital and traditional are no longer two different strategies – they are both interconnected and there needs to be a single strategy for your business that connects them.

An Inside Look at Dell’s Influencer Program

07/13/16

konnieIn the last few years, a number of brands have realized that to earning the trust of consumers isn’t something they’ll be able to accomplish on their own. The reality is that people trust people more than brands, which explains the emergence of influencer marketing. Instead of going straight to their target market, brands are now looking to a chosen few individuals to augment their message and promote their products. Influencer marketing programs have stepped boldly onto the scene and have set up shop in B2C and B2B environments.

In my book The CMO’s Periodic Table, I interviewed former IBM VP of Marketing and the architect of their B2B influencer program, Tami Cannizzaro. In Tami’s words, the point of such programs is to connect with notable people in the target industry and “make these people part of your overall strategy, treat them like VIPs and give them insider access to your strategy or brand.” Influencers get a seat at your company’s table, and become the voice of your brand for the thousands of people who consume their content.

During the Incite Group’s Corporate Social Media Summit, I had the pleasure of continuing this conversation with Konnie Alex Brown who specifically oversees Dell’s influencer relations. I talked to Konnie about the skills and strategies she deploys to make sure Dell’s influencer campaigns are mutually beneficial for the company and the influencer. Speaking with her not only gave me an in-depth look at the inner workings of a brand/ influencer partnership, it further proved the value that such relationships bring to both the brand and the influencer.

Drew: You’ve been at Dell for +9 years. Talk to me a bit about how your various jobs at Dell set you up for our current one and the skills you need to succeed at running social influencer relations?

Konnie: My experience leading corporate and executive sales and technology communications at Dell have had a foundational role in preparing me to design corporate social influencer programs that reflect Dell’s customer focus, business priorities and long-term strategic vision. Understanding a company’s history and being plugged in to the right news streams and networks within a company of Dell’s size is fundamental in building a social influencer program that creates value for the business, as well as for the social influencer. Understanding the dynamic and nuances of shared value creation is indispensable to be successful in a business-to-business environment.

Drew: Can you give a specific example of an influencer you are working with? How did decide on this individual and what did the program look like?

Konnie: Sure, Drew. I have recently developed a blue print for working with a social influencer focused on Dell’s IoT solutions. This particular B2B example is exciting as it describes the path and evolution of the relationship leading to tangible ROI for Dell and for the influencer and, very important, it is repeatable. This case study also clearly shows the need for company internal collaboration across teams to achieve maximum value. It is important to note that this process will take time and dedication just like any initiative that involves building trust-based, human relationships. Think of it as ‘dating’ where the brand (but really a human representative of the brand) and the social influencer get to know each other.

Take a look at the blueprint for building a relationship based on increasingly more information sharing and trust building via carefully chosen and designed touch points.

konnie2

Let’s start at the beginning. Following the identification and pre “first date” vetting of the social influencer, we begin with building the relationship by inviting him or her to a first meeting, ideally an event where both parties can find out about goals, capabilities and business priorities. Over the course of additional touch points, designed to uncover the value for the brand and the influencer, the evaluation to deepen and nurture the relationship (think months, not days) can be made. Once a mutual level of trust has been established, the depth of information sharing and authentic, mutual endorsement can take place without compromising the influencer’s independence of voice. It is also important to note that there will be ongoing assessment of the relationship’s value – from both sides.

Drew: What does Dell hope to get out of the relationship? How do you measure success? (feel free to share how long it can take)

Konnie: Great question, Drew. Let’s talk about the mutual value that a long-term, trust-based relationship creates for the Dell brand and the influencer. Dell seeks to help the influencer understand our purpose, customer commitment and value proposition by sharing our strategy, technology POVs and details about current and future plans to meet and anticipate customer business needs. The value for Dell clearly lies in expanding our audience each to raise awareness and educate the social influencer’s audience about the Dell value proposition in an authentic way for future consideration and action. We constantly monitor the value of the content in terms of frequency, authenticity, subject matter expertise, preserved independence of opinion, social engagement and reach as well as dynamics, such as leadership and interactivity, at in-person events.

Drew: Let’s talk about the value exchange here. What’s in it for the influencer and how do make sure that persons is getting what they want out of the relationship?

Konnie: The value of the relationship for the influencer resides in several areas and may vary dependent on the influencer’s particular goals. In general, however, the value resides in gaining insights into Dell’s technology strategy, particular POVs, future plans as well as access to customers and partners of Dell. This information access allows the influencer to deliver insightful, trust-worthy content to his or her audience and, with that, increase his audience, trusted status among them and his or her relevance in the industry.

Drew: How important is it that you personally have relationships with the influencers? Is this something you can outsource and if not, why not?

Konnie: Dell’s social influencer programs are built on the premise that relationships are owned, maintained and nurtured by Dell via frequent virtual touch points and white glove experiences via in-person meetings or events throughout the year. To answer your question, Dell’s point of view is that these relationships, due to their long-term, trust and value-based nature, cannot be outsourced. Aspects of social influencer identification, logistics and measuring processes, however, can well be handled by an agency.

Q+A w Stephanie Anderson, CMO, Time Warner Cable Business Class

07/4/16

Stephanie-Anderson_TWC-Official-150x150As you all know, I never pass up an opportunity to sit down with a marketer and hear which practices worked and which didn’t work for their company. I mean, what better way to learn more about this ever-changing industry than to listen to leaders in the field share their insight, the lessons they’ve learned, and the strategies they stand by. Through these conversations, I’m able to add value to my company and our clients.

On the blog today is former CMO of Time Warner Cable Business Class Stephanie Anderson, a friend of mine, president of The CMO Club New York chapter and a veteran of TheDrewBlog. I spoke to Stephanie in 2012 when she first joined TWCBC, and although much has changed since then, her stance that “knowing your customers and prospects will never go out of style,” still holds true. I’m sure Stephanie would agree that this way of thinking is largely responsible for the success of her team at TWCBC. It was interesting to talk to Stephanie as she wrapped up her time at Time Warner Cable, and to partake in a much different conversation than the one we had in four year ago. Now, we’re talking customer communities, loyalty programs, content marketing,  and the way television has strengthened digital.

Drew: You’ve been in the job about 4 years now. Can you provide an overview of your overall approach to marketing at Time Warner Cable Business Class?

Stephanie: When I arrived at Time Warner Cable, we were many businesses and we were marketing at a very local level- which I believe in- but we were missing an overarching message and communications methodology.. The goal of my team was to find the place where localism mattered, and then compliment that with a consistent campaign across the country. We had to find the best breed of each of those local areas and then pull it up to one common message.

Drew:  How did you decide that the consistent campaign was going to focus on your customers and get to a point where you thought that would be effective?

Stephanie: It started with a focus on what we called an “outside-in approach.”  This meant we could never lose sight of our customers and our competitors. If we weren’t doing that, then we’d be missing the boat.  By always thinking about our clients we knew we had a chance of developing programs the competition would fear.  From there it was an easy step to testimonials, telling customer stories online and on television , which ended up being great for all parties.

Drew:  How did you find the customers to feature?

Stephanie: We initially identified a few companies largely because they were loyal customers of ours. They also had interesting stories to tell and were hugely popular in social media, which demonstrated a lot of energy and engagement.  So we focused on finding those kinds of customers, and then telling their stories on television, print, and digital.

Drew: Did this have an impact on their business?

Stephanie: One of the companies we actually became quite close with is Beekman 1802. They have an online service that they we’re really trying to grow with a very unique product base. Once we put them on TV, their popularity grew significantly. We even did a follow up story with them, which was thrilling for both parties.

Drew: Did your approach to finding customers for the campaign evolve?

Stephanie: Yes.  We’ve been using an online resource we created for customers called PerkZone to help us find more great stories, and then turn those into testimonials.  In this case, the customers nominate themselves by submitting their stories.  The response has been amazing and these small business success stories are truly inspiring.  When we do our long form testimonials, the story “inside the story” is always amazing.

Drew: What’s the story behind PerkZone?

Stephanie: One of our partner agencies is Renegade and they helped us create this retention strategy and loyalty program for small businesses called PerkZone. Accessed through our “MyAccount” portal, which customers use to pay their bills and manage their account, PerkZone has two areas, “Deals and Discounts” and “Ideas and Community.”  In the first area, small business can find discounts from national brands as well as post deals for their local customers.  It is in the other area that we were able to source hundreds of stories, a few of which were featured in our TV campaign.

Drew: Wow, so you could go from the online portal to become a star on TV?

Stephanie:  Yes, like the Voice or something; it still happens. The best talent sometimes comes right to you.

Drew: Has Perk Zone had a material measurable impact on loyalty as far as you can tell?

Stephanie: Absolutely. Like many companies, we’re very focused on Net Promoter Score (NPS) and we’ve seen a really strong correlation between any digital engagement and customer satisfaction.  Customers who use our MyAccount portal are significantly more likely to recommend us than those that don’t.  The numbers get even better with PerkZone users.  My gut told me that this was the right thing to do, and it was nice to see that the data proved me right.  We’re continually trying to think of ways to engage with the customer, and we know we need to continue to invest in these areas.

Drew:  Let’s zoom back to the big picture.  How has all of this customer-centric marketing paid off?

Stephanie: TWCBC been very successful from a B2B standpoint having had 18 quarters of consecutive quarter-to-quarter growth!  That’s remarkable considering TWCBC not a small business–it has over $3 billion in revenue and it gets harder to grow when you’re big. The company is not only acquiring customers, it’s also keeping customers, and some of these tactics that TWCBC has been talking about like establishing this community and getting to know its businesses better has actually helped our results considerably.

Drew: Pundits have been saying, “TV is dead” for years yet here we are in mid-2016 talking about how well TV has worked for your B2B brand?

Stephanie: First, we’re TV people and TV is still very much part of our culture. But more importantly, TV does really work.  It does exactly what it’s supposed to do. It guides the inquiring person to your website, or wherever you want and helps get them engaged in the process. That is what it’s meant to do, just like a print ad or something else. Some of these traditional tactics get people motivated to go see more or engage with you, and that’s what we’re trying to do.

Drew:  So TV gets the conversation started and then they go online. How are you making the two work together?

Stephanie: We have a great vendor partner that we use in the digital space that can make real time adjustments based on how much traffic TV is driving online. It’s amazingly sophisticated.  Making sure that our offline and online tactics are coordinated has really profited us.  It’s one thing to be coordinated with campaigns; it’s another thing to be coordinated on the delivery side, making sure that people are going where you want them to go. It saves both parties time.

Drew: I’ve heard you talk about a fifth P beyond Product, Price, Promotion and Place. Can you elaborate on it?

Stephanie: Everyone knows about the 4 Ps, and they are very important in marketing, and I think they fulfill most of everything that’s going on out there. I contend that there is this 5th P that is Proof. This probably comes from my long history of being in sales at different levels in technology. Notoriously, there was always this moment in the demonstration when the tables turned and the customer says, “okay I get it,” or “okay I’ll take it.”  That was the moment we provided the Proof, when we helped people really see how others were using the technology.

Drew: Let’s shift gears here.  TV and digital were not your only tactics.  You also got into content marketing, right?

Stephanie:  Absolutely.  Working with our partner RSL Media, we actually created a publication called Solve that goes to our 160,000 customers and prospects in the mid-market space.  It’s both a 24-page printed magazine and an e-zine, with content that’s relevant to that mid-market space. With highly topical and informative stories, we’re able to keep the conversation going by delivering really useful information that just happens to from Time Warner Cable Business Services. The response has been great – we’ve had customers actually call us to make sure they’re subscribers and to get other employees on the list.

Drew: Why not just create a digital version of Solve? Why go to the expense of printing it?

Stephanie:  Some of it stems from years back when I needed to accumulate a book of testimonials for our sales force and also links back to my early point about Proof.  Sales people need to be able to demonstrate proof of what you’ve done for other companies.  Solve is great for that since many of the stories feature customers.  It gives the sales person something physical that can help start a conversation.  It’s really hard to do that with a digital-only version.  Also, our customers felt more important being featured in a well-produced magazine.  It was prestigious enough that customers started asking how they could be featured!  In this case, the medium was also the message.

Drew: What would you say was the biggest lesson you have learned that you would pass along to future marketers in your industry, or any industry?

Stephanie: I think going back to the customer or competitor focus, and keeping your eyes set on the external. Whether that be your competitors, or your brand or your prospects that are so important. It’s so easy in marketing to get distracted by the stuff or the creative, or the results. Sometimes you need to step back and think wait a minute, who am I trying to talk to? And if I were them, would I listen, or if I were the competition, would I be afraid of what they’re saying?  Those are the things that we are committed to because they work. If you keep that forefront on your mind, you will be successful.

Q&A with Evan Greene, CMO of The Recording Academy

06/26/16

Evan Greene_Recording Academy

The Grammys have brought us some of the best moments in television, and the most spectacular performances in music. From Michael Jackson’s moonwalk across the stage in ’88 to the Elton John and Eminem duet in ’01, and most recently Lady Gaga’s tribute to David Bowie, the Grammys have been the place for historical moments in music. And if you’re like me, you brim with excitement before the show, and are unable to stop rehashing the night’s best moments for days after. One night a year, the telecast captivates people around the world and easily dominates the conversation on social. However, is the show on your mind for other 364 days? Well, I spoke with Evan Greene, a friend of mine and CMO of the Recording Academy, to hear how his team approaches the challenge of marketing a show that airs one night per year. Key words here: social, social, and more social.

Drew: What does your marketing purview include?

Evan: I can tell you that anything that touches the Grammy brand ultimately runs through the marketing area, whether it’s marketing and brand strategy, PR, social media, digital content and yes, partner strategy. We represent the biggest brand in music, and for other brands, there is value in aligning with us. We partnered with other brands to utilize the impact and the marketing reach of brands that are complementary to our own. Also, we are a 501(C) 6, a not-for-profit trade organization, and this affects our marketing strategy.

Drew: How does it affect your marketing partnerships, specifically?

Evan: We put together marketing partnerships so that we can leverage the impact of the Grammys, which is unparalleled in terms of credibility and prestige. On the flipside, the value that partners bring to the table opens up other marketing channels. Now, because of the prestige of our brand, there is a value associated which means there still needs to be an economic model in place.

Drew: Was there partner integration for Lady Gaga’s performance? Did Intel do the projection?

Evan: Yes. This was the first time when we partnered with a company to actually help us enhance the performance. If you notice, there was no Intel visibility or attribution on the telecast because we wanted it to be subtle. We focused on making the performance memorable, something that people would be talking about for a long time. At the end of the day, Intel received a tremendous amount of credit and earned media.

Drew: And with that comes months of hard work and constant communication between Intel and the Grammys.

Evan: Yes, there was a lot of heavy lifting and coordination. We put something together that had never been done before. There were things that happened on the Grammy stage from a technology standpoint that have never been put on television. It really was the next generation of Grammy moments, right before our eyes.

Drew: Every year, you challenge your agency to do some new things. Let’s talk about the new things that you did this year in terms of marketing and social.

Evan: This year we started thinking about the inspirational power of music and the intersection between music and sports. Sports came in because it was SuperBowl 50 and it ran on CBS, eight days prior to the Grammy Awards, which created an extraordinary opportunity to bring the two together. We engaged our agency of record, Chiat/Day, which in my opinion is one of the best shops on the planet.

Drew: How was the concept further developed?

Evan: We started from the standpoint of how do we celebrate sports and music. How do we align the best in music with the best in sports, globally? What came out of that was a powerful tagline, called “Witness Greatness.” We looked at the music that inspires the athletes who in turn inspire the world. “Witness Greatness” really is about the inspirational power of music, and we could apply that in a number of ways.

Drew: So you were able to move beyond just the “Witness Greatness” tagline?

Evan: Yes, it was not only the theme and tagline, but also the visual representation and how we applied it. We then applied the theme to social and made sure that any visual we associated with represented greatness. We made sure to elevate that conversation whenever and wherever possible.

Drew: How did your team focus on the witness portion of “Witness Greatness”?

Evan: We have a companion stream, sort of a shoulder programming experience called “Grammy Live.” It shows different angles and elements, not necessarily the telecast itself, but it shows backstage etc. This year, we inserted a camera inside the base of the Grammy statute so that we could actually witness greatness in a different way-from the position in the POV of the statue itself. We got some great footage and content that had never been captured before. 

Drew: After the Grammy team fully adopts the theme, I’m guessing the next step is for the media to pick it up?

Evan: Yes, and was amazing when the media starts quoting our taglines, and when other members of our social ecosystem started organically using the “Witness Greatness” hashtag. When I think about all the touch points, from those doing social to the persons pitching media stories, to our marketing partners, there is a consistent look and feel across the board.

Drew: Any favorite projects from the “Witness Greatness” theme?

Evan: There were a couple of components that I found particularly exciting. If you go on our YouTube page, youtube.com/thegrammys, there is a video that we did with Kendrick Lamar in his hometown of Compton. We went on the street, and asked people to sing a couple of lines from his song Alright, which has become sort of an anthem over the past year. We created a video of all of these individuals singing particular lines of the song, and at the end, it culminated with an impromptu performance and the tagline was “Greatness Comes From Everywhere.” This served as a drive to the Grammys. 

Drew: I know the Grammys has worked with user-generated content in the past. Can you give an example of how you used UGC in past seasons?

Evan: Several years ago, we had a campaign called “We’re All Fans,” and it underscored the idea that what makes an artist great are the fans. With that in mind, we invited fans to upload videos of themselves and become part of the campaign. That was probably the most organic example that we had. People actually got to see themselves as part of the national Grammy campaigns, creating mosaics of Lady Gaga and other global superstar artists.

Drew: How was UGC executed for this Grammy season?

Evan: The idea really drives the execution. This year, our campaign was about creating the conversation, engaging with fans and having them share what about their favorite artists represents ‘Greatness.’ So in terms of UGC, we didn’t invite video submissions this time around, but we focused on having respectful dialog with our fans and followers about inspiration and greatness.

Drew: The reviews have been very successful on social. Obviously, you’re at the center of the social media conversation during the show, but you’re still very present months after it aired. How is that even possible?

Evan: I think we’ve been very successful and I am happy with the work of our social team and everybody involved in that effort. I think we can get better, I really do. The core reason for this year-round success is respecting fans and speaking with trust and authenticity.

Drew: What are some of the mistakes you are seeing other organizations make with their social media?

Evan: When communication seems gratuitous, and it is focused purely on making a sale or driving behavior, consumers see right through that. We simply want to be a credible part of the music conversation. When you look at the brands that resonate and break through, it’s the ones that earn your trust. If you speak with authenticity, and you respect your audience, then that becomes the cornerstone of trust. Trust is how you build a long-term relationship.

Drew: Being a nonprofit, how do you allocate the money brought in from the Grammys?

Evan: The money that we make doesn’t go to pay dividends, meet a quota or achieve net profit goals. It’s filtered right back into the music industry so we can create more in-school music programs and empower the next generation of music makers. We give back in a variety of different ways to enhance and srengthen the industry platform that the Recording Academy sits on.

Drew: One of the other things that you’ve done over the years is expand the Grammys from Grammy night to Grammy week. I feel like this was Grammy month. Where are you right now in terms of the scale of the Grammys?

Evan: I think we’ve made a considerable amount of progress over the years, but we still have a ways to go. What has struck me is that we’ve built this massive brand with a tremendous amount of impact by virtue of a single television event held for three-and-a-half hours, one night per year. The marketing opportunity that creates is enormous. If we take a proactive brand management approach, how impactful and powerful a brand could we be if we continue to extend throughout the year?

Drew: What a challenge! How do you rate progress? 

Evan: I think we have expanded the impact of the Grammy as a brand, beyond simply one night per year. I do not believe that we are anywhere close to being there yet where people started thinking about the Grammys as a relevant brand they need to interact with in June, July, and August. But like I said, we’re making progress and there are a number of exciting things on the horizon.

Q+A on Programmatic with MediaMath’s Rachel Meranus

11/2/14

Rachel_Meranus

Embracing change has never been an issue for me.  Hopefully, other marketers feel the same  because marketing is about to change in a fundamental way.  The dream of putting the right message in front of the right person at the right time is about to be realized on a massive scale.  This is the 1:1 marketing idea that Don Peppers & Martha Rogers wrote about 18 years ago finally coming true.  Why am I so confident?

First, “addressable TV” is right around the corner and this means our set-top boxes will no longer be dumb terminals. Instead these devices will be smart, feeding our preferences back to broadcasters who in turn will aggregate and sell our “eyeballs” to the highest and most relevant bidder.  This is not just good for marketers.  It will also be good for consumers in that we would no longer see irrelevant ads–for me, that means no more ads for feminine hygiene or baby products when an ad for a paddle tennis racquet or a new off-Broadway show would actually be relevant.

Second, outdoor is about to become smart as digital displays receive information about us (with our permission of course!) via bluetooth or Wifi and therefore can serve relevant messages in a flash.  Third, retailers use of beacons will enable our mobile devices to receive personalized messages again on a permission basis in real-time inside or outside of their stores.  And finally, the ultimate reason you can trust this prediction is that this sort of highly targeted real-time messaging is already happening online and on our mobile devices!

Ultimately, behind all of this wizardry will be a marketing operating system like the one developed a few years ago by MediaMath, a leader in what is currently called “programmatic” marketing.  These operating systems will enable marketers to tie just about every penny of their ad spending to measurable outcomes, the ultimate dream of our soon to be transformed industry. So it is in this lofty context that I encourage you to read my extensive interview with Rachel Meranus, SVP of Marketing for MediaMath.

Drew: Can you talk a little bit about MediaMath and your growth in the last few years?
We’ve come a long way since we made industry headlines when we introduced the first demand-side platform (DSP) in 2007.  Today, we’re one of the leading change agents in the advertising industry, helping the biggest brands and agencies evolve through programmatic buying and maximize their marketing performance and ROI.  We are on the path of making marketing a software function and continuing to innovate in the industry by adding capabilities to our TerminalOne Marketing Operating System.  For example, we recently introduced closed-loop attribution functionality, in which T1 ingests attribution data to optimize the bidding and decisioning, enabling advertisers to realize the full benefits of advanced attribution in an RTB environment, and automated guaranteed deals to facilitate automated media buys that are traditionally done directly with a publisher.  We are currently developing our propriety cookieless cross-device targeting and measurement solution, and continually enhancing our data management, creative optimization, and analytics offering.

In addition to growing the scope of our technology, we are experiencing incredible human capital growth – more than doubling our number of employees in the past year and on track to do the same this year.  In June, we raised more than $175 million in additional funding; funding that will support our rapid global growth. We have put experts on the ground around the world with our recent office openings in Australia, Brazil, France, Japan, and Singapore, and in 2015, MediaMath will relocate its New York City headquarters to more than 100,000 square feet spanning three floors of the new 4 World Trade Center.

Drew: Can you give an example of a client that is doing amazing things with programmatic? 
Many of our clients – both agencies and brands – are seeing success with programmatic tactics, leveraging geo-targeting, look-alike modeling, and even building proprietary models to identify new prospects through TerminalOne.  One example of a client that is accelerating their programmatic efforts is ShopStyle by PopSugar, the social shopping and fashion website.  They were looking to leverage programmatic media to create scalable return on ad spend, with a focus on campaigns in both the middle and lower funnels.  Using our TerminalOne Marketing Operating System and working with our OPEN partner AddThis, ShopStyle was able to create more robust and scalable profiles based on user data and implement more granular targeting around behavior and contextual variables.  Additionally, utilizing FBX, ShopStyle by PopSugar was also able to expand its retargeting pool and tactics beyond traditional display.

Drew: The big media buying agencies are all over programmatic and have been for a while now.  This doesn’t seem to be case with most brands and their CMOs. Why the understanding gap and why do you think it is so important that CMOs understand the power of programmatic?
We see quite a range when it comes to a CMO’s understanding and level of sophistication with the technology.  Some jump right in and get their hands dirty. Others are treading lightly on unfamiliar territory.

Traditionally, agencies had more exposure to the ins and outs of digital media buying, but for many brands and their CMOs, they haven’t had this much control over or transparency into their digital media buying.  There is still a lot of confusion about how the technology works, but it’s critical for CMOs to understand the power of programmatic, especially when more marketing dollars are shifting to digital.

With a central marketing operating system, CMOs gain the visibility into how their money is being spent, the impact of their media buying decisions, and the ability to identify real-time opportunities with their audiences.  Furthermore, the more CMOs embrace programmatic – within their own brands or together with their agency partner – the greater opportunity they will have deploying first-party data, integrating with internal systems, and normalizing marketing across disparate media types for greater performance.

Drew: MediaMath has made a concerted effort to engage CMOs through your partnership with The CMO Club. Can you talk about your approach to this partnership?
The value of our partnership with The CMO Club is two-fold.  Firstly, we are able to learn, first-hand, from CMOs across a variety of industry verticals what is keeping them up at night.  We are able to be on the pulse of the major challenges that CMOs face, what they view as the biggest opportunities, and how they’re building out their organizations to keep up with the evolution of digital.

Secondly, the CMO Club gives us tremendous exposure to an engaged, interested audience of CMOs, allowing us to educate and inform them on programmatic marketing, which is where our expertise lies.  We’re helping them to understand how our technology applies to their broader goals and addressing the challenges that they face on a daily basis.

Drew: What’s the hardest part of trying to engage CMOs and what kinds of things are you doing to cut through?
When it comes to engaging CMOs, we look to explain why programmatic should be the basis of any digital marketing strategy and have the lion’s share of digital budgets.  This requires us to explain how the technology fits into their stack, the new or different skillsets that are needed, and the ideal team structure that should be put in place to fully take advantage of a central operating system.

However, there are steps that we’re taking to help educate CMOs about the opportunities, what they can do to maximize the return on investment in the short term – from their current digital efforts, as well as what they can put in place for the longer term.  We’re educating them through tailored content, which varies depending on their level of experience with and understanding of programmatic, case studies, and interactive training sessions.

Another way that we’re doing that is by working with brands’ agency partners who bring trading best practices, cutting-edge tools, pooled media buying, and data co-ops into the relationship.  Programmatic technology creates new roles for agencies in which they are able to leverage proprietary modeling and optimization approaches and data-driven creative services, among others.  This benefits the client outcome and that’s what has led to more CMOs having a greater interest in and understanding of programmatic.

Drew: As a B2B brand, what role does social media play in your marketing mix? 
Social media is an important part of our marketing mix, which we use to raise brand awareness, identify influencers, and engage brand advocates in a competitive space.  As a B2B brand, LinkedIn is particularly beneficial to engage influencers, seed our messages in specialized groups, and participate in timely and topical conversations.  Furthermore, as social channels expand their programmatic capabilities, we are able to leverage our partnerships with them.  For example, we use TerminalOne’s decisioning engine and data sources to power campaigns on Facebook and engage target tailored audiences on Twitter.  For these channels, we regularly leverage our original content – blog posts and research – and news to spark conversations that can generate new leads.

Drew: MediaMath recently unveiled new positioning. Talk me through what led you to make this change and some of the challenges you faced along the way.
The industry has been moving at such a quick pace, with new players emerging seemingly every day.  The industry has reached a level of sophistication in their understanding of technology and is recognizing that a complex chart of logos to represent today’s online advertising ecosystem isn’t the answer to their need for scalable marketing.  Rather, they are realizing that it’s achievable through technological unification and a flexible, open platform. Our new brand message, ‘Performance Reimagined. Marketing Reengineered,’ epitomizes both our goal-based approach to drive transformative marketing results, as well as the technology platform that powers it.

Drew: What advice would you offer a fellow marketer who was about to consider a rebranding campaign?
Evolution is inevitable, especially in the fast-changing world of digital marketing.  Therefore, when it comes to a rebranding campaign, there are a few essential steps to consider before diving in, including the need to:

  • Gauge market readiness for change and have a clear understanding of how your brand is perceived in market.  This requires research and due diligence with a brand’s key stakeholders – current employees, clients, prospects, and industry influencers, as well as having a pulse on the competition.
  • Have a clear, concise mission statement to which everything you do as part of the rebranding maps.
  • Know how this change will impact your company and prepare communication plans – internal and external – that also include a roadmap for what will happen post launch.
  •  Manage expectations.  Shifting perceptions and seeding a market with a new message takes time.
  • Agree upon the metrics by which you evaluate success on an ongoing basis and establish a feedback loop to capture reactions to the effort, including the accuracy of your mission statement.

Drew: Given that MediaMath operates in a relatively new field, do you think bringing greater awareness to the field itself is just as important as marketing MediaMath?
We do and it’s the reason why we are so bullish on our educational initiatives.  We introduced our educational arm, the New Marketing Institute (NMI), in 2012.  It’s an extension of our mission to educate, empower, and engage a new generation of digital marketing professionals, providing an educational platform and different levels of certification.  NMI’s team meets with these professionals where they are and brings our best-in-class onboarding process to them – best practices, access to a central repository of knowledge, and an understanding of the digital marketing technology in which their employers have invested.

We also recommend marketers visit our OPEN portal, which includes a Partner Marketplace, enabling them to gain clarity around the vast number of data, media and technology providers that comprise the ecosystem.  By understanding the value proposition and differentiators among partners, they are armed with the information and tools to make more informed buying decisions.

Drew: Your product is really good at helping brands track performance of their marketing dollars. How do you measure your own marketing success?
We measure our marketing success based on a number of factors, including leads generated, opportunities that can be mapped back to specific efforts, engagement with our original content (blog posts and research), how our messages resonate across social channels, and, of course, revenue.

Disclosure: I’m proud to note that Renegade created the “Train Your Brain” CMO engagement program for MediaMath. 

Turning Marketing into Service w John Hayes, CMO, AmEx

01/21/14

john-hayes (1)A common phrase in the service industry is “the customer knows best.” While waiters and retail associates will roll their eyes at this, especially when it’s delivered by a manager following an unpleasant customer interaction, there’s definitely some credence to it. American Express is one company that takes “customer knows best” to heart, and has used the adage to help inform its marketing strategy for decades.

AmEx CMO John Hayes and I caught up around the time of the CMO Club Awards, and he gave me a glimpse into the intensely service-focused world that runs American Express from the inside out. From creating an Open Forum that lets small businesses help each other out, to starting a publishing arm way before “content marketing” was a buzzword in—wait for it—1971, to offering live streamed concerts to its music fans, Hayes and his team are are not just believers in “marketing as service,” they are the poster children for this approach. 

Drew: One of the big issues that big companies have is how to keep their marketing fresh and nimble and not get stuck in a rut. Over the years, you have been incredibly innovative in terms of your marketing. Have you been able to institutionalize this innovation?

There are a couple of answers to that question. The most fundamental is that you have to continue to focus on the customer. If you become focused on the issues that present themselves inside the company instead of looking outside at the customers, you’re sacrificing innovation. If we’re going to be a great service company, we need to be serving them, we need to be communicating with them, we need to be marketing in the places where our customers or our prospects spend their time.

Being customer-focused is the first part of innovating because what you’re trying to do is anticipate the needs that those customers have and looking for an advantage over your competition, which usually comes from serving your customers in a unique way. The second part is to generate a level of curiosity about what’s happening in the world, both in terms of the talent you bring into the company as well as the culture that you build and maintain over time. We have been able to build a culture of curiosity where people are curious about how to make things work better.

Drew: You’re a great service company, yet one might argue that you also sell a lot of products. Has a service mentality always been front-and-center at American Express? How does being a great service company affect your marketing?

American Express has been around since 1850, and when we first started, we were a freight forwarding company, not a payment company. Then we slowly moved into the traveler business and the travelers check business. The company was 108 years old before the first American Express card appeared. Since the beginning, there has been a focus on being a great service company, whether that service was freight forwarding, opening up markets for people to travel and experience, offering people a safer way to carry their money with travelers checks or offering them something like the American Express card to simplify their lives and make it more rewarding. All of those things come from a service culture, a company focused on service.

This brand has been about 3 things from its very origin: Trust, security, service. So the iteration we experience today happens to be mostly in the form of plastic payments, whether that’s corporate, small business, consumer or for our merchants, but that’s just the way we’ve taken service to market today. It starts with understanding what business you are in and understanding that this is a company that believes it’s noble to serve. From that comes the way we go to market.

Drew: I saw the case history on Small Business Saturday, and there’s a lot of evidence that it drove a tremendous amount of traffic. That was probably among your more measurably effective initiatives, at least from a small business standpoint. But my understanding of Open Forum is that you can’t find a direct link to revenue, yet you’ve been investing in Open programs for years.

I think there are some general trends that are very positive but you’re right. When you get to a granular level, it’s difficult to say this program generated this many cards and this much spending for American Express.

We have a belief that if you serve people well, they will become your customers, because people find it rare to be served extremely well. We don’t require people to be a cardholder to use Open Forum. We created the site because we knew that part of enabling the success of small businesses was helping them understand what other small businesses had already learned to help them be successful. That’s why we created it, and that’s why we made it an “open” network – so people could find the people that would be of most value to them.

When you’ve contributed in a meaningful way to a small business’ success and then say, “Hey, I’ve got some other services for you. I’ve got a card that could help you manage inventory better,” they are quite open to it because they’ll say, “Well, you guys have already been enabling my business, enabling my success,” and that’s the philosophy. Some programs we can measure on a granular level, and some we can’t, but we’re careful not to overvalue the things we can measure or undervalue the things we can’t. 

Drew: You’ve been developing content, one way or another, for small businesses for years. Given that everybody is creating content, and other companies are targeting small businesses like you are, what are you doing to stay ahead?

What’s really important is that we don’t do things just because they’re a trend; we do things because we think it’s the right thing to do for our customer. In 1971, we started a publishing group called American Express publishing. Wow, what a concept. Who was talking about content in 1971? But this company has the foresight to understand that if you’re going to be a lifestyle services company, you’re going to serve businesses and people. You need to talk to them about their life, not what they’re going to use to pay for something.

The philosophy that got this company to create a publishing group in 1971 is no different than the way we think about our company today. If you’re in the service business, every interaction with a prospect or a customer should be a service interaction. We provide those magazines as a service to those customers. If you look at what we do on stage – bringing music to so many people on a live-stream basis – the philosophy is the same. That is our way of serving customers who we know have a passion for music because of the things they do, because of the way they spend their money. We should be helping our customers experience what it is they want to experience, and many of these experiences are open architecture because we want prospects to know that’s what it feels like to be a member.

Drew: Have you seen your role, in the last 10 years, evolve as a CMO? 

My role has evolved a lot. First, it’s evolved from the standpoint of understanding what is happening in the world related to media. How are people consuming media? How are they absorbing new messages? Those things have changed fairly remarkably in the last decade. Part of my job is to make sure I understand how the world works today from a media standpoint, whether that’s social media, digital, or traditional, and how it’s changing. How are brands being established in the landscape today?

My role is also about identifying which elements of American Express will not change from 1850, and which elements absolutely will in terms of how we go to market. Trust, security, and service will not change. This company has existed for 163 years because it’s reinvented itself, but always around the ideas of trust, security, and service.

Drew: What role is Big Data playing in your job today?

Data is a fundamental part of what we do today, and it’s a great opportunity, because data can allow us to optimize on a much shorter cycle. We also see it as an opportunity to serve customers better. I can anticipate your needs, I can help you with the things you want, I can begin to understand what you might need in the future based on data and that data can be very useful in service and marketing standpoint. I won’t talk about marketing without mentioning service because I think there’s a lot of marketing out there that is of no service to anyone and frankly doesn’t have much impact. The things that are sustainable are the marketing elements that serve people well. So data becomes an enormous opportunity not only to find prospects, but to also understand them and to offer things that are a real service to them, so that you can begin the relationship on a service level and not just a sales level.

Drew: If you had to justify the creation of Open Forum today based on data that you didn’t have because you hadn’t yet introduced it, how would you do it? I believe there’s a risk today that marketers might not take the giant leaps of faith in an untested program because its’ impact is not going to be linear.

I think your assumption is entirely correct which is that the data allows you to find the opportunity, execute the opportunity, and prove that it was a success; all on shorter cycles than ever before. You’re not waiting 6 months to say ‘did it work?’; you’re saying ‘let me show you the week after Small Business Saturday’. Let’s take a look at the behavioral shifts we saw. You’re able, because data is as robust today, to see insights to what might have cause and affected certain positive outcomes.

You cannot be a great marketer without experimentation. Experimentation requires great accountability. You have to be experimenting with a purpose and you have to have the data and the metrics that will allow you to demonstrate what worked and what didn’t. It’s okay to fail as long as you don’t fail twice on the same thing. That’s the way we try to operate here, we experiment a lot we have some things that work phenomenally well which the world gets to see on a broad scale basis and we have some things that don’t work at all and we say that didn’t work fold it up let’s not do that again, let’s try some other things. That to me is a big part of how the job has changed because 20 years ago, it was not as experimental as it is today because the data wasn’t as robust, the metrics weren’t easy to access, the cycles took longer and there weren’t as many new permutations to try.

Drew: Let’s talk about the Link Like Love and Card Sync programs. Are they both social? They have transactional elements, which is very different than some of the other things you’ve done. How would you evaluate those two programs, and do they have futures?

They definitely have futures. They come from a very clear observation of many digital channels, which are unlike many traditional media channels, which tend to be really focused on communications. These new channels are distribution channels, they’re service channels; they operate on so many different dimensions that it allows you to create products specifically for these platforms.

I believe iIt’s a missed opportunity if you’re working in the digital space and all you’re trying to do is create a communication. You’re going to disappoint people, because people who consume these channels don’t see them as just communications channels.

If you start to build products and services that exist within these very robust platforms then you start to create more interesting things that people can spend time with on the platform. You’re building something that mirrors the behaviors you’ve already seen customers take in those categories and on those platforms. Our philosophy has always been to build things that compliment the platforms that we’re building them on.  We are able to distribute products, services, and communicate with our customers because the channel is so robust it allows us to do that.

Drew: Let’s take Facebook Link, Like, Love, how does that work?

We have a lot of card members who spend time on Facebook so this program now gives them a way of further utilizing their Facebook presence. We then offer them things based on their social graph, their friends, their behavior, and their traditional spending behaviors. We’re then able to see how well we’ve done because some things have an enormous uptake. We’ve offered other opportunities to customers to sync their cards that have not gotten enormous uptake.

When we launched Tweet Divide, it was basically a similar product on a different platform. We communicated with people who were going to South by Southwest before they went on their route. We also reached them in a variety of ways en route to South by Southwest. There was a special show that we were doing, which we were live streaming with Jay-Z. If they wanted to attend the show all they had to do was sync their card on Twitter, tweet the show, and they would get tickets to the show. The viral effect was unbelievable. It was an incredible show. The headline the next day was something along the lines of “The most innovative new startup was American Express.”

We don’t like to just put everything on autopilot, particularly with something like South by Southwest. If you’re going to do something, we believe it should live up to very high standard of innovation and newness so we didn’t repeat it this year. We are taking the things that worked from it and applying it all over the place.

Drew: As the CMO, how much influence do you have on the entire customer experience?

At any company, that grows with time. I do believe there is a benefit of having been in this position for so many years. You have earned the right to influence many things that ultimately build your brand by doing things, demonstrating the value, measuring the value over time. I feel for CMOs who are just coming into a complex organization and trying to manage all of the elements that they believe are impacting both their brand and their business. It’s very difficult in a short amount of time to get your arms around it. I don’t know of a company structured in such a way that the CMO has control over all of the touch points.

For me, what’s really been tremendous is having the steady support of a CEO who has said “This is important,” and being able to demonstrate to my colleagues: “Here’s the value that we can bring,” and how, if we work to together and bring something that has synergy to the market, we all benefit. We’ve seen the impact that service has on the American Express brand, our customers and their behavior following a positive experience. It’s really been about picking things off and demonstrating the value of each over time.

It took me a few years before I was really able to get people on board and see how we can be more successful with greater synergy. It’s really a plea to consistency. Some people think consistency means boring and tired, and I don’t. We’re demonstrating that we have a consistent level of talent. Our organizational structure has allowed us to build relationships internally, and some things that were difficult 12, 15 years ago are second nature today.

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