Changing Marketing's Old Guard

Before becoming an agent for Fame Foundry, I invested more than 20 years working for several advertising agencies. I learned, peddled and practiced everything from marketing plans to package design. Like most career admen, I know all about media buying, creative briefs, radio and TV production, graphic design and creative writing. But there's at least one thing I've learned that makes me significantly different from marketing's old guard; I've learned to accept the fact that the Web has replaced all other forms of media.

Even now, marketing firms and advertisers alike seem comfortable with the status quo. This is fine as long as their customers continue to make buying decisions based on reading brochures or seeing ads in newspapers or on television. It's amazing to me that with all the options available, some businesses prefer to pay over $1,500 for one newspaper ad or even $500,000 for a TV spot.

Though there are still clients who don't mind paying through the nose for marketing tactics that do little to improve their bottom line, the smarter population recognizes that the Web is the most efficient method to market its products and services. And while marketing firms continue to preach about how web development is just another tool in their tool chest or how social media is just media, other firms study feverishly to understand the medium. This may seem like progress but many of these firms that struggle to understand the Web will never get past the passe concept of banner ads if their counsel is coming from industry publications like Advertising Age.

Sources like these (and many of the nation's most recognizable agencies) try to understand the Web within the context of the industry's milieus of the past 50 years. These advisors feel threatened and resent the fact that now anyone can produce a video or publish a magazine. Yet because they hear social media is hot right now, these publications do their best to educate their subscribers. Marketing firms are drinking in as much of this swill as they can so they can appear knowledgeable to prospective clients. Despite what they've read or how many webinars they attend, they're only able to glean a rudimentary understanding of the Web, while hoping to make a quick buck off it before anyone notices.

Complacency in their ability to sell smoke-and-mirrors tactics and resentment of the Digital Age are the reasons the old guard doesn't make an effort to understand the true nature of the Web. It's also why traditional firms are losing bids to nimble, forward-thinking shops. If marketing firms are to survive in today's economy, they must stop pontificating about the glory days of advertising and begin selling the Web as their clients' primary rainmaker. It doesn't mean firms are prohibited to sell another full-page ad or media kit, but it will require the old guard to learn more than just a few new tricks.

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The New Rules of Customer Engagement

The rise of the culture of the Web has revolutionized the nature of how businesses and customers relate to each other. Whereas companies could once shape and direct the perception of their brand through carefully crafted ad campaigns, direct mail and press releases, today the flow of information runs fast and free, and customers now own the conversation. And because whoever owns the platform dictates the culture, the world is a more human, less institutional place to do business. Today’s customers want to feel good about the products they buy, where they came from and how they were made. Moreover, they want to like the company behind the product – that is, genuinely like it, not just press a Facebook button. We are entering an age of emotive economics. Corporations have been forced to adapt to this new, people-centric culture by connecting with customers on their own turf in more casual, conversational ways. There’s little room or respect for old-school corporatism’s pomp and protocol. And those businesses that cling to traditional behaviors in the online community will earn its scorn very quickly. Those companies that have embraced this new landscape and its risks have enjoyed great reward. For this reason, the human face, rather than steal and glass, has become the façade of big business. Yet with style must also come substance. It is no longer acceptable to be about profit alone. Companies are expected to contribute to the world in ways that make their customers’ lives better. Consumers are demanding that business be done on their terms. It should come as no surprise, then, that human values – transparency, respect, conscientiousness, kindness, trust, generosity and the like – are the keys to engaging with customers in this brave new world of business. So how can you use this new dynamic to your advantage to grow your business? You must embrace the new rules of engagement, understanding that when you put people first, profit will follow:

1. Don’t treat customers like they’re stupid.

When Netflix bungled its attempt to change its pricing structure last year, the backlash in the online community was severe, with many customers threatening to cancel their accounts immediately. It was clear that customers viewed Netflix as a value-priced alternative to more expensive traditional paid media channels, and therefore many felt betrayed by the company’s sudden doubling of their fees. While the price increase itself wasn’t really so unjustifiable, what made it unpalatable for customers was the company’s lack of transparency in explaining the business drivers behind the rate hike – the rising operational costs of maintaining a physical DVD business and the growing licensing fees for content streaming. Instead, Netflix spun the move as giving customers a “choice,” offering the option to subscribe to a DVD-only service at its lowest price ever. Here's an excerpt from their ill-advised news release: To his credit, CEO Reed Hastings acknowledged the poor handling and chalked up the misstep to “overconfidence,” which still sounds like PR spin, but hey, we’re making progress. The lesson? If a change in product or policy may have negative consequences for your customers – even if only in perception – acknowledge them, express empathy over the inconvenience or added cost, explain the reasons if possible and then point out the benefits or offer alternative options. People understand that businesses must evolve and that profit is still part of the equation. Don’t assume that your customers are beyond reason or treat them like they’re too stupid to detect what’s really going on.

2. Over-serve your customers.

It’s always good business to go the extra mile for customers, but never more so than when trying to recover from a mistake. How you handle disappointment is what determines whether your customers write you off and tell everyone about it or trust you more and spread the good word about you. When Google decided to phase out Wave due to poor user adoption rates, they didn’t just shutter the windows and bury the technology as if it never existed. Instead, they gave users months to move their data off the service, converted Wave into an open-source project and gave the Wave community the tools to get involved:

3. Be humble and listen to your customers.

Building on the success of its breakthrough app Wunderlist, Berlin-based software firm 6Wunderkinder recently launched Wunderkit, a project collaboration and management tool designed around the social connections of today’s work environment. Wunderkit was made available in a “freemium” model, offering standard features to all users for free with additional functionality available for a small fee to power users. As the company analyzed feedback from its beta release of Wunderkit, they realized the community’s dissatisfaction with project collaboration between users – one of the platform’s central features – only being available to premium users. What follows is a fantastic example of how to demonstrate that you’ve heard your customers loud and clear, understand their feelings and are acting to resolve the issue:

The customer is king, and the king is here to stay.

Never underestimate the commitment required to engage with customers effectively in today’s marketplace. Human relationships are not managed well with rigid rules and policies but instead must be governed by human values like compromise, sensitivity and transparency. It takes much more than a Twitter account and Facebook page to win the hearts of customers. You must develop a culture that is focused on and driven by the customer through and through. Be purposeful in growing such a culture. Establish your own rules of engagement. Make sure every employee is encouraged to embrace and exhibit those values. Empower them to do whatever it takes to take care of your customers. The journey may be a bit rocky at times, but if you walk the line faithfully, you’ll earn something from your customers that can never bought with advertising dollars – trust, respect and even passion for your brand and what it stands for.

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