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April 2, 2013

Evil Email

The worst thing you can do to a good bar is to make it popular. Once everyone goes there, it isn’t worth going there anymore.

Email advertising and online surveys used to be good bars. When email first commercialized, it was a great and inexpensive tool for lead generation, prospect follow-up and brand reinforcement. But as emails popularity exploded, so did the number of marketers who abused the process. Today people dread reading their morning email – it has become a disappointment filled chore. Email open rates have been dropping. This has caused some marketers to get smarter and create better and more targeted emails.

Lousy marketers just find bigger lists and thus annoy more people, which will continue to drive down open rates.

evil-emailSomething related is occurring to surveys. Once online survey tools became cheap and easy to use, every man, woman and hermaphrodite with an email account started receiving survey invitations … hourly. The result is that participation rates, which were typically low before the Survey Lounge became popular, have dropped to rates less than 0.1% of invitations. People have started to auto-reflexively ignore emailed survey invitations unless the subject line is well targeted and offers some reward. A recently conducted survey went to a very tightly targeted audience with a combination of incentives (personal and charity donations) and managed a 0.2% response rate, which these days is better than average.

Anything that becomes frequent creates fatigue. Sending too many emails to one prospect, without adding new value at each step, will cause your email address to be added to a spam filter black list. Sending to people uninterested in your offering will only speed the process. To make email marketing effective again, you need to take a few logical steps:

Make it count: Emails must be meaningful, from the subject line through the last message and calls-to-action. Refine, refine, refine until it is right.

Target precisely: It is always a temptation to cast a wide net, but that has become ineffective and can land your email server on a black-hole list. Buy good lists with great hygiene and segment them relentlessly. Treat your house list the same way.

Eliminate barriers after contact: I have started abandoning pages that require registration for simple “Five ways to …” type articles. I’m not alone. Reduce friction everywhere, and raise barriers only after some form of commitment from the recipient has been made.

Keep trying alternatives and shift budget accordingly: Email is only one tool. If it is becoming less effective for you, then be bold and shift budget to places where you will get better results.

January 29, 2013

Questionable Surveys

Asking the right question is as important as asking the right people.

We do a lot of primary research work at Silicon Strategies Marketing, and that means we do quite a bit of surveying (so much that we run our own software suite for online surveys). Surveying remains the cornerstone of quantitative investigation even in this age of constant polling where nominal surveys receive less than 0.1% response rates.

Which makes the oversupply of sloppy surveying mythologies downright depressing.

There is both science and art in survey design. It begins with knowing what critical information is to be acquired – what business decision you are making. Non-specific problem definitions lead to non-specific questions which produce non-specific answers (to be specific). Surprisingly many folks do not precisely understand the business decision they face, and we spend a lot of time in business coaching to improve their focus before assembling their surveys.

Even after establishing the business need, formulating survey questions requires hard work. Every industry and genotype has its own language. Survey questions (and invitations for that matter) need to communicate in their language, using instantly recognizable idioms and terminology (start-ups and companies defining new markets have significant question formulation burdens since the language that describes the problem and solution may not yet exist). Composing clearly stated and vernacularly correct question sounds simple, but if it were simple we would not be doing as much survey design work as we do.

Even then, human bias enters answers, and survey design needs to control for it (and if the language base for the respondents is vague, then you need to double the corrective effort). Asking a respondent if they prefer black or white requires no sanity checking of their answers. Ask the same respondent to rate their opinion of congress requires extra investigation (public opinion surveys have relentlessly shown that people think congress is inept but that their personal congressman is a genius). Surveys can take counter-measures – such as restating the same question in different ways in different parts of the survey – to catch incongruities.

Value measurements are the toughest, and price sensitivity studies are the worst. The value people place on anything tends to be skewed by frugality or the Mercedes Effect, causing people to place a low or high dollar value on products. In this age of hyper-automation, one trick is to give each respondent in an online survey a random price question, where each of the possible questions shows a different range of prices. If the response rate is high enough, you can map price lifts and drops visually. Other tools, such as Van Westendorp’s Price Sensitivity Meter, achieve good results with even low response rates or small populations.

If you need to survey, take time to work and rework your survey instrument. Asking the wrong question in the wrong way will produce the wrong answer.

January 22, 2013

Outsourcing Savvy

Happily, outsourcing marketing strategy works for everyone.

Last year I got a call from a global conglomerate that rakes in over $20 billion each year. They were launching a new product from within one of their divisions. Savvy as they were, they needed help in new product go-to-market messaging.  In the division of that giant corporation, the native knowledge was unavailable.

Sadly, this doesn’t happen all the time.

Nobody is universally competent. In large companies, even specialists with necessary knowledge are not portable between organization boundaries. Smart marketing executives inventory their talent and outsource as needed to assure everything that needs to be done is done, and is done well. Companies that don’t fail.

Early in my consulting career I was hired to help with the pivot of all pivots, changing an entire post-IPO enterprise from a hardware company into a software vendor. The company was successful at what they did, but their market was dissolving from around them. They had no clear notion of their new market segmentation or core market messages, much less how to stitch it all together. But they didn’t have the internal strategic focus to realign themselves around an entirely new business.

Sadly, few companies can admit their lack of specific expertise.

When SuSE Linux brought me in, their North American marketing strategy wasn’t. They didn’t understand the problems they had internally, but were willing to learn. Between a revamped marketing strategy and a solid PR team, SuSE went from being an also-ran to the undisrupted #2 enterprise Linux distribution. Management understood that they didn’t understand marketing, and were flexible in acquiring expertise for their weak points.

Sadly, few founders are that flexible.

Every company, from the smallest boot-strap start-up to the largest conglomerate has holes in their marketing discipline. Every company needs to fill those holes, but cannot hire full time people for every possible marketing task. Outsourcing to marketing experts is as wise as outsourcing coders – hire the experts you need, when you need them, for only as long as you need them in order to acquire the skill sets you need. It is inexpensive, flexible, and completes your marketing savvy.

Sadly, someone reading this will ignore the advice.

November 30, 2012

Relo Ready

A quick note to Silicon Strategies customers and fans of Marketing Memos.

We have nearly completed our relocation away from San Francisco, landing squarely in San Jose – the eastern anchor of Silicon Valley.

I personally look forward to seeing fellow Valley tech company execs at the various regional functions in the near future.

November 1, 2012

November Talks

I’ll be speaking at two different Silicon Valley events in November, covering some of the details in my new book the Start-up CEO’s Marketing Manual.

The first event is this Saturday, November 3rd. It is an “un-conference” called Marketing Camp. The chat will be in room 8 at the civilized hour of 10AM. This show will be highly interactive and great gobs of free advice will be made available.

Later in the month, November 12 to be exact, I’ll present the full-length version of my diatribe at the SV Forum marketing SIG.  It has been a decade since I last spoke to the SIG, back when the organization itself was called “SD Forum” (SD stood for “software developer”, which gives you an idea of how the organization has matured and expanded over time).

All Silicon Valley founders, co-founders, CEOs and victims of epic failures should roll out to both events. Well, at least one.

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