The agency model continues to demand change. Agency models based on optimizing media continue to collapse, but it seems like the typical response of marketers is to simply continue optimizing the buys. These habits are still crippling marketing agencies ability to grow. Some of habits that need to be broken:

1. Strictly Hiring by Marketing Tool
Job descriptions for new hires are still based on (channel) tool-specific strategies without hiring strategists tasked with tackling client business goals. Tools jobs are everywhere: Social Media Strategist, Pay-Per-Click Campaign Strategist, etc.

Of course we need human resources to execute and deliver on these channels. I’m arguing that by identifying strategists by their tools is a self-serving model. If you’re hiring hammers, everything looks like a nail.

Not only that, but gears are ready to be turned by the global market. Customer relationships are managed by call centers around the globe. Who’s to say the widget you’re hiring for (or turning) can’t be outsourced next?

Instead agencies can hire by business objectives. As an example, nix the “Social Media Strategist” title in favor of community development. Focusing on the business objective creates consistent consumer experiences (between social media, communications, on site touch points, etc) and allows agencies to measure results by what makes a real difference to the client.

As an additional note on this practice: Agencies hiring resources in this way aren’t setting themselves up for long-term profitability. Optimizing tools is short-sighted and leaves money on the table for both the agency and the client. (Continuously optimizing investments means less budget is inevitably required to gain the same results.) Put another way, channel hires optimize channel or tool return on investment without consideration for true growth.

Smart businesses have already begun to take note and things are already stirring:

• Average Is Over
• SETH GODIN: If You’re An Average Worker, You’re Going Straight To The Bottom 

2. Underestimating Data
Even as marketers begin to finally focus on data, technologies outpace them. “Big Data Scientists” identified within Mashable’s Career of the Future: Data Scientist are already automated by data synthesizing and predicting tools–but we’re only just catching up the the IDEA that big data is widely available and ready to “drive product and operational decisions”. Big data isn’t just driving decisions, it’s able to predict outcomes.

“Big data” allows us to understand data outside of siloed channels. Big data allows us to understand individual behaviors regardless of tools. Big data lays a foundation for actual business growth. And it’s already been automated and organized.

3. Optimizing Existing Models (Instead of Making Real Change)
Companies continue to pat each other on the back–while downsizing–and aren’t putting a clear direction forward. (Consider: Clickable’s article GM Consolidates $3B Media Spend With Carat) As a Detroiter, this kills me. If all automakers did was optimize Ford’s Model T, where would we be? Yet this is the same approach GM is taking with media buys.

There’s an opportunity to innovate and change the way humans relate to and use their transportation. In the same way Borders didn’t sell books, GM doesn’t sell cars (they sell a means of transportation and lifestyle). Refocus marketing on that relationship and how to use relevant marketing channels will logically follow.

Creative campaigns will only bring companies so far. Campaigns are fantastic ways to connect with the hearts of people. But strategists need to focus on building programs that will address business goals–before connecting with people who’ve heard variations of the same messages over and over and over.

What will win?
Building marketing agency models that focus on program development–solving business problems through individuals–will win. (Consider:  Tools Execution is Not Customer Centric: Recreate The Marketing Agency Model)

Your thoughts?

This post is an extension of Rethinking Marketing: Create Consumer Value through Brand Extensions

I realize white labeling products is easy and sometimes headline-grabbing for brands. But the reality is they’re still products. Regardless of sexy new concepts using “social integration” or “mobile accessibility”, a product limited by transaction.

It is important to differentiate the use of products as part of a campaign versus actual program development. Programs are developed uniquely to a business,tied to a bottom line business goal.

But that’s not the fault of the company selling the white labeled the product. In fact, it’d be impossible for the companies developing these products to execute any other way–they don’t know your business.

Creating programs that improve the way business is done is the responsibility of the marketer. The marketer has the opportunity to pair innovative products with fundamental business growth. Why settle for retro-fitted products?

Ready to engage in conversations like this before they’re sent to the masses?

I believe the best marketing doesn’t feel like marketing. A consumer should (at least initially) forget he or she is viewing and consuming marketing material because of a genuine immersion into the experience. This can feel like a friend sharing information, an expert providing education, or a peak at an entertainer creating. No matter the experience, the compulsion to share the experience is an indication of success.

I believe marketers should think like entrepreneurs on behalf of clients. Carefully exploring a client’s business and considering challenges can amplify how business is done. Focusing on product pushing can be done by just about any advertising salespeople.

I believe in data. Footprints (in the form of data) should be unobtrusively collected and studied as a consumer moves through the experience in an effort to mold the next experience; whether it be in a new effort to connect with likeminded others or a continued effort to pull the consumer deeper into the brand (and down the sales funnel).

I believe in the artistic concepts of marketing. These are the intangible, brilliant concepts that don’t come to life often enough because someone was afraid to take a chance. These are the only kind of ideas that really have the potential to cause a disruption in status quo, make a lasting change for the consumer and brand alike, and deeply impact the bottom line. I believe the people capable of concepting these ideas can be destroyed by cubicles (and 9-to-5 drones).

I believe our work as marketers, technologists, and entrepreneurs can pave the way for others. I believe that people who think “work” is synonymous with “job” are not playing in the same sandbox. I believe billing by the hour, rather than by value, contributes to marketers viewing their work as a job and therefore producing widgets.

I believe a marketer is responsible for respecting the consumer. This means reasonably respecting privacy through intelligent data collection. This also means looking for ways to center brand value around the consumer, not the other way around. Brands have the power to inspire, promote, and ease the lives of consumers. Marketers who can focus on this can change the world while blowing away bottom line expectations.

What do you believe?

Ready to engage in conversations like this before they’re sent to the masses?

“Products” as Brand Extensions

There is a marketing opportunity to create value-added brand extensions. Value added brand extensions provide utilitarian benefits to the consumer.

There has been an uptick of brand extensions by way of mobile applications, microsites, web tools, and more. A couple examples:

• Benjamin Moore’s Paint Calculator: Know how much (Benjamin Moore) product to purchase using the paint calculator. It’s super simple to build (and use), keeps the user on the Benjamin Moore website, and nears the user to making a purchase decision (converting). This is the simplest example I’ve found.
• Nike+ Running Application: Nike doesn’t sell shoes, athletic wear, or basketballs. It sells athletic culture. And Nike+ was a great way to extend the brand into the athletic experience.

Brand extensions that provide these benefits extend the product lifecycle, builds the relationship, and creates an enchanting experience. But most of all, they are a staple of customer-centric marketing program development.

Entrepreneurs Capitalize Instead

But there are some companies that run ahead of the pack and capitalize on brand markets. These entrepreneurs create free consumer value, then invite brands into the party at a cost. A couple of examples:

• Mint.com: The banking industry tanks and bleeds brand equity while Mint use continues gaining credibility. Mint seizes the opportunity to leverage massive amounts of very personal consumer data by selling hyper-qualified advertising to banks and other financial services companies.
• iTunes, Pandora, Spotify: Record companies keep kicking and screaming with each evolution of iTunes. But they continue giving away opportunities to own the next evolution.
• Groupon: Small Business Associations, even SBA, could have owned this and sky-rocketed the value of their entire organization.
• Evernote: Where was Post It on this? Or are they really just selling paper?

This is easy for brands, but there’s a significant opportunity cost being late to the party. The entrepreneurs own the consumer data, access points, and relationships. Brands gain…advertising channels.

Check mate? Or are more brands going to stand up and own their markets?

Ready to engage in conversations like this before they’re sent to the masses?

It amazes me how many marketing companies base their very being on execution tools (web development, social media, email) and still call themselves “integrated”. Or, for that matter, how many clients end up down this rabbit hole.

Before your head explodes or you set the comment section on fire, please continue.

Some companies sell tools. Some marketers buy tools. Purchasing decisions are usually driven by pre-determined budgets. It looks kind of like this:

For the sake of continuity, I call this Siloed Execution.

Many agencies sell integrated marketing. Integrated marketing is smart. It looks kind of like this. It saves money, connects contact points, and is a much smarter spend than siloed tools. However, purchasing decisions are still often driven by pre-determined budgets without regard for customer impact.

Technical integration of execution tools is, well, technical. While it allows us to do our jobs more seamlessly and with improved branding, etc, it begins with the tools–not humans.

Customer Centric Program Development: Begin with the target customer, build out the content strategy, develop the brand, then deliver. This approach will provide a scalable budget based on desired impact.

Here’s a simplified version, using the sample tools above, of how this looks:

Let’s break this apart:

Customer: Your customer more than the summation of their demographics. Focus on the consumer lifestyle. For more on lifestyle-focused marketing, check out Retail Content Strategy: It’s a lifestyle.

Content: What kind of value and information is of value to the customer lifestyle? This is the kind of content they want to consume: the kind that provides value to their life. Value can be created by education, entertainment, or even social status.

Brand: How can the brand connect, create, or amplify the content customers are seeking–while remaining consistent with its values?

Delivery: This is where marketing agencies sometimes begin. “We can access XYZ demographics.”

Tools: This is where marketing agencies usually begin. Today’s favorite claim to competence: “We do social media.” I’ve been “doing” telephones my entire life and that doesn’t mean anything without the messaging, the customer-centric program development. Those who sell “social media” (or other tools like “email marketing” and “web development” for that matter) did not take to heart the demise of Borders.

Talk about true integration. It all beats from the same human heart: The customers’.

Now that I’ve offended most of my professional marketing colleagues, let’s start a conversation. Comment and let me know what you think, what you recommend differently.

Ready to engage in (even more) more blunt conversations like this before they’re sent to the masses?

Last night I spoke with a group of entrepreneurs at the Wayne County Community College in Detroit about using web analytics to make marketing decisions. Our talk included a lot of great questions, so I recrafted the presentation slides to include event-dialogue.

A lot of this is somewhat elementary information for analytical data nerds, so consider yourself warned.

Ready to engage in conversations like this before they’re sent to the masses?