I recently attended a webinar and read an article that took somewhat opposing sides about today’s marketing: a need for measurement and too much of a science.  Both arguments leave me wondering; Didn’t marketing always have both?  It’s not a one trick dog. 

David Lavenda, blogging for Fast Company, wrote that marketing today is too much of a science, and new methods of measurements have limitations.  He believes the marketing budget can only be reduced so much, and breakthrough innovations require “radical ideas to difficult problems.”  Lavenda stretches this argument too far, pointing out that descriptions for marketing job positions now include words, like “metrics,” “track,” and “measure,” but marketing positions involved in analysis and measurement are not new or any emerging trend.  There certainly have been breakthroughs regarding marketing analytical tools, such as the previously described Twitter analysis dashboard, HootSuite.  But CEOs aren’t suddenly concerned over a company’s budget allocation; marketing departments have always been required to provide some sort of results, or they wouldn’t be able to provide evidence of their budgetary needs.

Marketo held a webinar titled, “What the CEO Needs from Marketing,” featuring the opinions of Phil Fernandez, CEO of Marketo, and Umberto Miletti, CEO of InsideView.  Fernandez felt marketing currently lacked the proper measuring tools to confidently inform CEOs of revenue results from campaigns and admitted to trusting his sales team more as they “have the metrics.”  He suggested that for marketers to build stronger trust with CEOs, they should propose to reduce the marketing budget, and find ways to measure revenue resulting from marketing efforts.  Fernandez makes a marketing department sound like a detached part of the business- the artsy cool kids who won’t share details and simply express themselves through their work. 

I’m painting a stereotype of course, but for a business to be successful, its executives and departments must work cohesively towards similar goals.  Marketing naturally should provide certain measurements depending on the tactics implemented, but even more vital is the communication between marketing (and sales executives and customer service) and CEOs, so that all parties are aligned on programs, expected outcomes, and the metrics that matter most to the business.  Proper communication enables CEOS and marketing executives to strike a balance between science, art, and accountability to satisfy both sides.

Tina Walsh
Marketing Coordinator

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In my last post regarding affiliate marketing, I brought up the question of whether an affiliate marketer can make a full living off of affiliate models.  The people behind The Third Tribe, who offer an affiliate marketing program, do not believe affiliate marketing is successful without incorporation into a larger strategy pipeline.  In a phone seminar between Johnny Truant and Sophie Simone, they highlight the difficulties that are not so apparent when “Average Joe” signs up for an affiliate program.  Some topics of their conversation include,

• Johnny’s irritation with Google Adsense: Affiliate marketers often make a number of cents for each sale or click that comes from their site.  Google Adsense does not pay marketers until they have reached $100, which took Johnny nine months.
• The products to promote are the ones with personal meaning.  Knowing a product’s creator and having used the product yourself, it’s easiest to communicate genuinely about the usefulness and benefits of the product.  Readers can tell the different between a sincere suggestion and phony sales pitches.  A connection to the product results in an earnest description and more clicks and sales from viewers.
• Communicating genuinely to readers builds trusts and causes them to become loyal to your site.   Loyal readers are more likely to click links from your site that you recommend, rather than the ones that simply interest them, because they trust your knowledge.  They will also recommend your site to their peers, resulting in a growing base of loyal followers.

Without a relationship as the connective tissue between a product and readers, affiliate marketers find that generating sales is much harder than anticipated.  Some most basic affiliate models, such as the Barnes and Noble or Tea Forte models in my previous post, allow an affiliate to choose links to set up on their site, but if they don’t have a true understanding and fondness for the product, they will not generate revenue and will ultimately abandon the product.

Does it seem like The Third Tribe is hypocritical with its criticism of affiliate marketing when it has its own affiliate model?  Its model is different enough that it’s their form of an improvement of the models they describe.  Third Tribe’s affiliate model is not built for affiliates to generate revenue; it’s a tool to bring down monthly costs to maintain a Third Tribe membership by referencing friends.

I think Third Tribe gets it right when they place strategy at the center of affiliate marketing. It also seems to me that a healthy dose of skepticism and distance from your own approach is a good thing, opening doors for improvements and innovation that can lead to greater success. In this regard, I think Third Tribe’s exploration is insightful and useful to anyone considering “cashing in” on affiliate marketing.

Tina Walsh
Marketing Coordinator
RedZebraWorks

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What do they have in common? Besides the fact that their music is played in my house on a regular basis, they are experts in their business.

Around Grammy time I read an article about Lady Gaga, and just last week I posted a link on my dad’s Facebook about the Grateful Dead. Now, I know everyone’s been hearing about Lady Gaga, but you may be asking yourself, what can a business today learn from the Grateful Dead?

Social media in the business sense is all about conversing with your customers, making them feel important, and in return generating sales and leads. Here’s how both of these artists do exactly that.

Connect with Customers (or Fans)

Lady Gaga: She goes where they go. Online. She debuted one of her latest singles, Bad Romance, on her own website, not on TV.

Grateful Dead: Before a public announcement was made about an upcoming tour, the Grateful Dead’s most loyal fans received a phone call from their hotline alerting them of the upcoming shows.

Build a Relationship with Fans

Lady Gaga: She has nearly 3 million followers on Twitter, updates her status regularly, and even has a pet name for her fans that she tattooed on her arm, she calls them her Little Monsters.

Grateful Dead: Die-hard fans, referred to as Deadheads, became a sort of social community. The band reserved the best tickets for their fans, but made sure to cap the prices for their 4 hour long shows. Deadheads were actually allowed to tape the shows because the band believed that sharing the tapes would increase their fan base.

Generate Sales

Lady Gaga: Album sales have reached at least 8 million and digital single sales surpassed 20 million. She just became the creative director for Polaroid and is a spokeswoman for Viva Glam lipstick (proceeds go to Mac’s AIDS fund).

Grateful Dead: All of the special treatment and focus on community encouraged Deadheads to buy merchandise. They are one of the most profitable bands of all time.

Social Media isn’t just about putting as much content online as you possibly can, and being on Twitter, Facebook, LinkedIn, Foursquare, Buzz, and any other number of sites. Fundamentally, treat your customers and fans well and they will treat you as well as they do Lady Gaga and the Grateful Dead.

Julie Novak
Marketing Coordinator
RedZebraWorks

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