With or without Steve, Apple will continue to grow and thrive. It’s not simply a computer manufacturer any longer. It has evolved well beyond the days when Macs were found in the occasional household. Apple has transformed the music industry and the personal computer industry, redefined the handset into a smartphone, remade retailing and introduced the tablet.

How did they do it? They broke with conventional wisdom and overcame the inertias that weigh down firms and industries. But the main ingredient of success in my opinion, is they made products that worked with people’s daily lives. Seamless integration and updates. No tribal language code. A near flawless user experience that are beautiful to look at. Not always plug and play, but pretty close. If you make products that people can use and fills a desire they have, you are more than halfway there. Apple actually went the full mile, closing the last 50% by making what they delivered emotional. They then amplified those products with superior positioning and marketing.

But most of all, they never gave up. No matter how dark the investor and pundit predictions were, or how large and dominant Microsoft became, they came in everyday and worked at it. Admirable.

Remember when no one wanted to copy Apple? Now everyone covets and races to copy them. Was this in large part the work of Super Steve? You bet. But there is no way he did this alone. It takes a village, and he has built a really big one.

Tim Cook, now the leader, did some amazing things. He got Apple’s on hand inventory down from months to days and is credited with being the supply chain wizard that allowed the firm to bring out so many products so often and quickly. Does he have the vision of a Jobs? No, no one does. But he does have a vision, and Steve is not walking out the door. He will be around and he will have more ideas and the wise folks in Cupertino will listen. His fingerprints will be on things for quite some time. It’s quite possible that not being CEO will give him even more time to be creative. That could actually accelerate Apple’s momentum. Perhaps he should have resigned sooner.

Don’t write off Apple or Mr. Jobs.

We create content around the Facebook page design and try to understand how their technology works. We sift through the countless companies who claim to know how things work on Facebook, and just when you think things are getting there, Facebook makes a major change to the design, or code, or interface and suddenly much of what you have made is now broken, or will no longer be useful to you. It’s frustrating, and should cause all brands to take a step back and re-evaluate the role external social networks should play in their company strategy.

Facebook is great at helping us understand their ad platforms and targeting, but don’t seem to be as focused on trying to understand where pain points are for brands who place their intellectual property on Faceboook. Or, in providing ample notice when major changes are about to occur. It would be wonderful to have a technology roadmap, or at the very least an outline of what might be coming. This would help brands plan their investments. It’s hard to argue that with Facebook’s size and large head start that they need to keep everything close to the vest.

Research done by Forrester, indicates that consumers trust the information they find at a company web site (30%) at higher rates than email, TV ads and direct mail. Company blogs (12%), online banner ads (9%) and mobile ads (6%) are at the bottom of the trust list. This means that your earned media, in particular your web site, is where most of your resources should be placed. Brands control the content, design and the technology of their own internet properties, making planning and tracking much easier than in the paid and earned media spaces.

Facebook offers significant access to consumers as well as a platform that is truly social, and this means you can’t leave them out of your social framework. How much you include them and in what way depends somewhat on your brand and how valuable consumers find your web site. The more your customers visit your site, the lighter your integration efforts in the social networks should be. If you have trouble getting people to your site, then Facebook might be a richer platform for you.

Other considerations are who owns the data and how much can you track or attribute back to the networks you work in. By all means I think Facebook is valuable for brands, but like anything, the value will evolve over time. The majority of your investment should be on your own web site.

What is adaptive marketing? Forrester defines it this way.

A flexible approach in which marketers respond quickly to their environment to align customer and brand goals and maximize return on brand equity.

Ok, fine. But what does that mean and where do we begin? Well, it begins with data, and lots of it. More data than we as marketers have dealt with in the past. And we need it faster than we have received it before and must be willing to improve our agility and act on the data much closer to real time than ever before. It’s tricky because we have all been handcuffed in the past by analysis paralysis. By not knowing when we have enough data to make the decision. Being an adaptive marketer means giving up a little on the temptation to ask for one more cut of the data to make a perfect decision, and act now on making a good decision, then, well, adapt.

Why is adaptive marketing something we should be talking about today? I believe that it has a lot to do with the fact that consumers are enjoying their new found power of being at the helm, and becoming more comfortable with bypassing traditional channels to research and learn from others who have had real experiences with brands, products and services. It’s a new world for consumers and brands, and the consumers are moving ahead. But then again it’s much easier to be agile as a single person than it is an inertia-laden bureaucratic corporate dinosaur (oh, that felt good). The traditional marketing funnel is breaking down as consumers bounce out and check blogs, forums, networks and friends before making a buying decision. This activity is accelerating an an alarming pace. Power is shifting. Thus, marketers need to adapt or risk becoming irrelevant.

Let me be clear. I am not sounding an alarm or posting my version of the Mayan calendar. Today’s marketing machine is pretty darn good. But change happens faster with each passing year, and the consumer is like Benjamin Button, he’s getting younger all the time. Good firms tend to devote a lot of thought to the future. And a funny thing happens when you raise your head up and peer over the walled garden. You see what’s out there. Here’s a glimpse of what you’ll see.

Adaptive Marketing: Rethinking Marketing Methods in the Digital Age

Among a number of interesting things presented by David Cooperstein, VP of Forrester, was a brief history of media. He took us through radio, TV, and early as well as modern digital media. It was a clever parallel of media and marketing, and in fact he states Media = Marketing

• Viewers – customers
• Distribution = media fragmentation
• Journalists = marketers

The history lesson was backed up by data that shows new media has mass appeal and is being adopted very quickly. People consume different kinds of media simultaneously, but the content they consume is oftentimes different.

This has significant implications on marketing messages, especially advertising. The user’s attention is fragmented. Wireless networks combined with the powerful capabilities of smartphones means consumers multitask to the hilt. Not good news if you want to breakthrough with your new product release. This is an important point. If a marketer can stack their message cross various media and reach the consumer during this multi-tasking moment, it will improve consideration and conversion. An article in today’s New York Times states:

For the first time the amount of data in text, e-mail messages, streaming video, music and other services on mobile devices in 2009 surpassed the amount of voice data in cellphone calls.

Mr. Cooperstein lists three tenets of adaptability one should consider to deal with this new reality.

• Think and move differently
• Listen more, react intelligently
• Target people, not statistics

Probably to no one’s surprise, social plays a large part in adaptive marketing. And of course no Forrester forum would be complete without some new illustrative framework. The Social Intelligence Life Cycle was posited several times during the day and a half. It warns marketers that they must begin to manage the analysis of customer data from social sources, and use this data to activate and recalibrate marketing programs.

Forrester Research

Now you may not be sold on the value and importance of social just yet. That’s fine. I would be the first to admit that it’s not mature and can’t compete head-to-head with traditional marketing practices. But there’s one fact no one can deny. It’s a treasure trove of data that marketers don’t usually work with. That’s a critical aspect of adaptive marketing. And yes, it’s 1,000 miles wide and one inch deep. Here are some guiding principles from Forrester.

• Adapt your process
• Plan iteratively and frequently
• Partner for creativity, not durability
• Use predictive metrics in addition to descriptive ones

Integrated Customer Marketing™: Technology And Services That Enable Adaptive Marketing

The Merkle Chairman and CEO, David Williams spouted some great ideas from the big stage. Merkle helps companies collect, manage and interpret all types of customer data. Here are some of his wise quotes.

• Adaption is how marketers can create competitive advantage.
• The digital revolution is enabling and accelerating the customer revolution.
• Competitive advantage in the future will live in how effectively an organization can understand, track, engage, measure and influence consumer behavior at the individual level

He showed a graphic depicting how one might leverage data to attain a competitive advantage. As marketers move from mass to conversation the data gets more granular. The more one can collect, understand and act on granular data, the greater the advantage they will have in the marketplace. Makes sense.

He offered the following advice to marketers:

• Push more money/spend into trigger marketing
• The next decade is about media, not channels.
• Real time data needs real time interactions
• Create strategies that optimize the value of consumers over time
• Move from a campaign mentality to a customer mentality

Mr. Williams had his twist on adaptive marketing termed Integrated Customer Marketing™. Defined as an optimization framework that maximizes customer portfolio value through targeted management of customer interactions across marketing sales and service throughout the customer lifecycle (there’s that word again). He spoke about managing a campaign inside a conversation (social). Interesting. If we could do that we would unlock tremendous value.

Know Me And Be Relevant: How Disney Creates Guest Relationships

I think we would all agree that Disney is a great marketing company. If you have ever been to their parks it gets hammered even further home. Tom Boyles, Senior Vice President Global Customer Managed Relationships for the Disney parks and resorts spoke about how they leverage customer data in a real time world. Here are some of his thoughts.

What is relevance and marketing? Knowing your customer well enough at any point in time or place that you would know exactly what to do next.

He shared real examples of how they are constantly adapting their data collection and marketing practices to improve the customer experience and impact business results.

• It’s not so much about did we get someone to the park. It’s more about did we get them back to the park.
• A customer never met a channel they didn’t like, so closely manage them all.
• Connect with your customers across all the channels and media on their terms.
• No one owns the customer, but everyone owns the moment.
• Our view is that it’s not just customer relationship management, but CCRM, continuous customer relationship management.

Transforming to a Real-Time Marketing Organization

Steve Sickel, Senior Vice President, Distribution and Relationship Marketing for Intercontinental Hotel Groups (IHG) took the stage. He was an outstanding speaker and had lots of information to share. As the largest hotel group in the world they have lots of experience with customers and data. For Mr. Sickel, it was all about moving his marketing team quickly into the digital world. He echoed what we constantly hear. That customers are more informed, they control the purchase process and demand greater relevance. Traditional media is the wrong tool for the job today because it’s too slow and generic. Customers behave in real time and IHG was behaving in batch. His formula for success: investment, technology and organization.

• Investment – Move traditional media to digital media. IHG has now shifted 85% of their media spend to non-traditional channels. This includes search marketing, online advertising, web retargeting, mobile and social.
• Technology – Automate marketing systems and transform them from slow, reactive and limited to “Right-Time” marketing where they can do thousands of personalized campaigns at a time.
• Organization – Break the silos of customer data and experience trapped in each individual channel and  make accessible across the enterprise, as depicted below.

Old IHG Organization

New IHG Organization

Very clear, focused strategy to ensure IHG is poised to market to their future guests. Of all the presentations, this one laid out the best framework for how a company might go about adapting their marketing practices, systems and personnel.

Know Thy Customer: How Customer Intelligence Becomes a Strategic Weapon

The last keynote I’m going to mention came from Dave Frankland, Principal Analyst at Forrester. It was a perfect place for his talk. Much of what was said up until this moment was about data; specifically collecting, managing and acting on it. Mr. Frankland took it up a notch by challenging us to translate that data into customer intelligence for better decision making. He defines customer intelligence this way

The management and analysis of customer data from all sources, used to drive marketing performance and business strategy.

He parses the concept into three buckets.

• Functional intelligence
• Marketing intelligence
• Strategic intelligence

The way to do this, according to Dave, is to begin to look at your customers as assets and liabilities. Not all customers are alike. Overlay your business balance sheet on your existing customer segments and you will see who makes you money and who causes you to lose money. Here’s a great focusing fact from Larry Selden, Professor emeritus at Columbia University.

The bottom 20% of customers can drain profits by at least 80%… while the top 20% can generate 150% of a company’s profit.

He cited some case studies from Fresh Direct, Farmers Insurance, Best Buy and ESPN. All great examples of how going through this exercise transforms data into intelligence.

What I Didn’t Hear Enough About

Which brings me to something I didn’t hear enough about at the forum, but alluded to earlier in this post. Mr. Frankland’s presentation got at it extremely well. That is marketers must refine the art of knowing when enough data is enough. We don’t need reams of it. We need the right data fast and then we must be able to recognize that we’ve got enough, then act. It also goes beyond enough, into, is it the right data? Marketers need to also look for new sources of data, vs. looking at the same old reports. It’s implied in many of the keynotes and track sessions, but knowing when to stop asking for data and having an eye for knowing what data to collect (it’s not all data) is something we probably could all learn more about. Forrester people, I know you’re out there. Perhaps you can assist here.

In Summary

I’m a veteran of Forrester Forums, and no matter how many I attend, I’m always rewarded with some great nuggets and outstanding networking opportunities. They excel at monitoring the vital signs of the marketplace and at delivering content right when it’s most useful. Keynotes here were very strong and consistent. Track sessions as always are more uneven.

Here’s my vote for best quote from the forum. I apologize that I am unable to attribute it.

Fast is fine, but accuracy is everything.

Endnotes

All slides are property of the firms that presented them. Content in this post originates from my notes taken during the forum combined with my personal perspective. All photos are mine.

That was several years ago. Jason recently reconnected with me, thanks to Social Media, and asked me to participate in a discussion about how I approach finding or replacing technology vendors on his blog Simon Sez: The Common Sense Blog. It was a great exercise for me, because it forced me to synthesize a couple of decades worth of experience and boil it down into a simple Q and A format. It was challenging, and because of how Jason framed the discussion, it ended up being fun.

Here’s an excerpt from Part 2.

Jason:  Steve, so far the feedback on our conversation has been strong.  There is so much to explore as we try to understand the challenges both buyers and sellers face when they are working on big RFP level deals.  One of the interesting things I’ve seen in the past is poorly written RFPs that have the same question asked multiple times; a clear indication that various stakeholders have submitted their departmental needs but that they haven’t been aligned with the entirety of the organization’s scope requirements. With that in mind, how do you lead the needs assessment that takes place?  How do you identify the internal owners, and how is that process managed before you even consider engaging vendors?

Steve: Your needs assessment should be informed by your strategy and roadmap.  Well crafted plans should include identifying the capabilities a company will need to build or buy.  The roadmap will tell you when you will need to acquire that capability or skill.  If you have been forward thinking enough to conduct annual performance evaluations of your agency or vendor (“A/V”) then you already have a baseline from internal stakeholders.  If not, you should solicit input from the people in your organization who work directly with the A/V, as well as the people who are directly impacted by the products and services that they provide.

Have a look at Part 1 and Part 2. I’m sure you will agree that Jason has a knack for simplifying the complex. Probably why he is so successful. Would value other perspectives, thoughts and experiences on how you go about choosing a new technology vendor. We are both happy to answer questions. Post them here or on Jason’s blog here.

5 years, 156 episodes

The classic 30 minute television drama is all but extinct, having given way to reality shows and various forms of forensics and autopsy programs. Thanks to

Me TV and Nick at Nite numerous classic (and not so classic) shows still live. There is one show from television past that has a unique brand, The Twilight Zone. A full 40 years after it first aired, the mere mention of its name takes everyone almost universally to the same place; ordinary people caught up in extraordinary events. A dimension where things are just a little bit askew. The thought of TZ might even elicit chills. It’s one of the few programs that has sustained life outside the cathode ray tube. Rod Serling was the mastermind and creative genius behind that groundbreaking show and attracted a who’s who of actors and technical talent. Everyone wanted to work with Mr. Serling and be part of the creation of this new and exciting form of television.

So, how is The Twilight Zone like a great online experience? Many of the attributes that made The Twilight Zone so successful eerily overlap with the very best web experiences. Both:

• Are easily accessible to a broad audience
• Present a fresh, unique approach
• Provide a consistent experience
• Contain highly engaging content
• Have the power to surprise
• Capitalize on teachable moments
• Are highly memorable
• Transform skeptics into loyal fans

Which leads me to MCD Partners. I work with Magnani, Caruso and Dutton (New York), an independent interactive agency that places a premium on ideas and a priority on understanding their client’s business objectives and brand value proposition. They are skilled at helping firms craft and execute their digital strategy. I’ve been working with them for over two years now and have not only made a great business partnership, but numerous friendships as well. We work long hours trying to solve the latest problem or design the next generation web site experience. But no matter what the deadline or obstacle, we always try to make it fun.

Speaking of fun, here’s some, at least for me. I revisited those classic Serling episode introductions and altered the copy so I could include members of my MCD account team. Using a cool microphone called the Snowball, I channeled my best Rod Serling imitation in a series of recordings I call The MCD Zone. I know I’m opening up a can of worms here, inviting a response in kind which will be much more polished than my meager creative skills can muster. But that will be even more fun.

So turn up your speakers for The MCD Zone theme. Disclaimer. It’s not really a video.

The cast of characters on my MCD account team is diverse and I highly respect their talent and professionalism. As time permits, I plan on posting more episode introductions with members of my MCD team as the stars. So if you work there you may want to bookmark this page and check back. Who knows, You might be next!

Identity Crisis

Word Traveler

Machine vs. Man

Missing

Now I have to say, lest someone think I’m serious, working with MCD is not really like being in the Twilight Zone. No one has aged prematurely or been lost to roam an empty vortex for all time. But we do create some extraordinary online experiences together. Some of them have been positively other worldly. Thanks MCD team for your effort, energy and oh yes, your good sense of humor. It’s a relationship that pushes all of us beyond The Comfort Zone.

Special thanks to Mr. Rod Serling. He’s not dead, he’s just gone ahead.

The studios are working hard on 3D. Not a cheesy version usually reserved for blood bucket, low budget pics, but one that is much more refined and ready for grown-up subject matter. This potential evolution might seem radical, but these are desperate times, so anything goes. Studios think they can charge significantly more for a ticket to a 3D version of a film vs. the standard version, perhaps as much as $25 per seat. When you couple the increased profits with a unique experience and throw in world class filmmakers like James Cameron, it’s a tempting proposition for investors.

There is one minor glitch. The film houses are not ready for the switch to 3D. Exhibitors must upgrade the technology to be able to project the new format, which can cost up to $100,000 per screen. The studios hoped the exhibitors would pick up the tab, as their part of the investment, since the studios would bear the additional production expenses (shooting in 3D can add up to $15 million to a film) as well as the need to also produce and distribute a regular version of the film for the foreseeable future.Unfortunately the credit markets are a bit frozen right now, so the technology upgrade money is not available.

Of the approximately 40,000 screens in North America, only 1,300 of them are ready with the 3D technology. The story is much bleaker oversees, which is important to note, as well north of half of a film’s grosses come from that market. But Fox is readying James Cameron’s Avatar for a prime December release date. Many other major studios have numerous 3D projects in the pipeline, including Pixar, putting even more pressure on the system.

It’s an interesting problem that studios find themselves in. The entertainment world expanded so quickly and there was is much pressure to produce profits, that simply making great films hasn’t been enough for a long while. Franchises like Batman and Spiderman have helped studios stay viable. They have launched web sites that promote films using social media functionality as an accelerant to their astronomical marketing budgets. Other owned media properties are leveraged to promote and sometimes even re-purpose material for the home screen.

We have seen the television networks completely give up on drama and turn their slates over to the reality format for the last few years. The cable networks like HBO and most recently with AMC’s Mad Men are leading the way with serious subject matter that is garnering critical acclaim and engaged viewers. The movie studios must guard against over-betting on the potential promise of 3D profits only to find themselves in a creative wasteland.

Obviously not ever project will work in 3D, and ultimately the consumer will decide if 3D is a great new format, or simply a trick to squeeze more money out of each ticket. But there is another major consideration. If it does work the studios could ruin their home video distribution channel by not being able to at least approximate the 3D experience. If someone loved it in 3D but can’t have that same experience at home for repeat viewings, will they just pass on renting or adding that film to their collection? There are firms working on 3D TV, but it’s not ready for prime time yet.

My advice to the system is be cautious and think through the life-cycle of the product. Hollywood needs more sources of value, not less. Theatrical box office revenues will not make up for lost home video sales. The infrastructure is simply not there and films have such a short shelf life in the cineplex. And above all, don’t leave the serious film projects behind.

YouTube and the recently launched MeHype site are giving rise to personal production companies. It certainly is no threat to the craftsmen in Hollywood, but consumers don’t seem to mind lower production values as long as they can be entertained. Netflix is moving quickly on their streaming concepts and partnering with LG for OEM tests. A TV is not a PC, at least not now. I will be watching this space closely.

Advertisers/marketers are thinking about things the way they’ve always thought about them (for the most part). Create a knockout, break-through-the-clutter, campaign/commercial and people will flock to your product or service. It has definitely gotten more integrated over the last few years, as advertisers have moved from the :30 spot as king, to stacking several mediums to reach a more attention-fractured public. But anytime a new audience-set or demographic is discovered, the same stale old playbook is put on the field. That’s followed by a lot of money being poured into agencies and media. That in turn is followed by head scratching, research and then in many cases a pause in all activity until it can be “nailed.”

Social media sites are about humans connecting with other humans and sharing common thoughts, information and experiences. The hooks get deeper when people began allowing others a view into the window of their emotional world as well. A health challenge, work success, family milestones, etc. People used to go online for two things, to learn or to do. Now you can add to connect as the third pillar of that stool. Ads are tolerable, and perhaps even occasionally welcome under the first two scenarios, but way off limits in the third. “Don’t pollute my pristine landscape with billboards and neon, I’m tryin’ to take a picture here.”

Two decades ago the media world revolved around the :30 second TV spot. Advertising started there and then radiated out. Today the heart of that solar system has been replaced with the Web. Not a web site, the entire web. There is a difference. A television was a television was a television. Fully compatible, everyone had the same experience, one form factor. You sat on the sofa and watched. Today, with the web at the center, complexity sets in. There are browsers on computers, televisions, mobile handsets; a consumer could be anywhere. The technology is all over the map and advancing weekly. Ads are now embedded in YouTube user-generated content videos for heaven’s sake.

No one single campaign will be able to make a big enough impact any more. Hitting that big home run is tougher and more expensive, which raises the risk. In today’s economic climate brands are looking to cut back, not spend on experiments. As I’ve said over and over in this space, don’t gold plate your efforts. Instead, create dozens of small, mini-campaigns, spend as little as possible and get them out there in rapid fire fashion.

Ideate, execute, learn, repeat. Senior managers will require you to justify a $500,000 campaign, and if it doesn’t pay back, it’s curtains. But no one will really pay much attention to something that costs $10,000. Just think you could do 50 smaller campaigns for the price of one big one and avoid all that scrutiny. And, you will get more data back in small bites that can be incorporated into the next small effort. It’s iterative advertising (a term just coined by me).

We’re a long way from cracking the code here, and arguably we may never fully crack it, because it’s a moving target. TV held still for a generation. The web will always keep transforming. One thing I’m sure of. Banners won’t work in places where people go to connect.

Just returned from the Forrester Research Finance Forum held in New York June 23rd and 24th. Forrester is a research company that does an excellent job at spotting trends, doing deep dive research, and providing companies with helpful insights. I have been a client of Forrester since 1999 and this is my 15th Forrester event. Time does indeed fly.

Photo Credit: Steve A Furman

The theme was How to Deliver Great Customer Experiences. A pretty broad topic, but the Forresterites did a yeoman’s job of spinning an anthem into a coherent, actionable program. Their format combines Forrester speakers, keynote talks given by high level execs from big companies, and smaller breakout tracks geared to a specific skill or practice.

I’m totally sold on the notion of providing a great customer experience as a building block of growth, and quite frankly am astounded that there are senior execs at major brands who still don’t get it. But such is corporate life. There are many factors at play for why people end up with the big jobs, but that’s fodder for a completely different blog.

Day one began with Research Director Benjamin Ensor giving a talk called Building Differentiated Customer Experiences. He invoked the Forrester Experience Based Differentiation tenant by saying that differentiation is more important than ever because:

• The Internet fuels transparency (one click comparison shopping)
• Consumers can’t see how financial firms are different (jargon, products are now commodities)
• Trying to be the price leader is dead (introductory rates turn into unaffordable rates)
• Product differentiation is difficult to sustain (easily copied)

For purposes of the post, Human is the Marketing department and Machine is the IT department. Manifesto is my rant. Nothing should be read into the terms. I have the highest regard and respect for IT and Marketing people (I am one) everywhere.

I attended Interwoven’s annual client summit, GearUp 2008, held in San Francisco April 22-24. Interwoven is a major player in the content management software space with over 4,200 customers in 60 countries. They develop enterprise strength solutions that help companies create, publish and archive all types of content.

A software application such as this has largely been the purview of the IT department. But Interwoven has been working to expand their offerings into a tool set suite in the hopes of transcending IT and engaging marketers, by allowing them to leverage content with increased relevancy. They are re-proclaiming that “content is king” and is the single most important asset firms have to influence brand consideration and purchase. With the explosion of online community and social networking this approach makes sense, and their extremely well run conference really got me thinking.

As a marketer myself, working in the Internet space, I rely heavily on my IT department to understand what I want to do in the online channel and then execute. We come at the world from very different mind sets, which sometimes makes communication challenging. I know the following dot points are oversimplified, but I believe they make my point.

• IT works in machine code and Marketing works in human code
• IT has build guidelines, Marketing has information architecture
• IT writes code, Marketers employ goal-directed design
• IT has an instruction set, Marketing uses personas

We have a great relationship with our IT team, but are always exploring ways to make it better and more effective. In my opinion a major point of convergence is in the offing.

1. Companies should require regular strategic planning sessions that bring to the table the Internet solutions VP, the E-Business VP, the CIO and CMO. This will help the organization understand the breadth of what needs to get done from infrastructure to presentation layer, from database to targeting. These will be sobering conversations.
2. CEOs should combine marketing and IT functions into one seamless high performance team. It will be required if firms want to accelerate the return on their already significant online investment and extend its effectiveness to drive business results.
3. Get social or get served. This is a courage call. Think, smell, taste and breathe social (I know, duh). But not that many traditional companies are doing it for all the reasons we already know about. In order to get social, IT and Marketing must be one social team.
4. Set up social tools for IT and Marketing to communicate and build their unique community. If given the chance and mandate, they will find common ground. Actually I worry less about the traditional marketing areas getting clued in, as their activities will continue to get more expensive and eventually will serve to support the richer interactive channels.

It’s all about having system(s) flexible enough to be both a marketing and servicing platform. Then it’s about the teams working to connect these systems in an online ecosphere. There are very big things looming on the horizon and companies that have not set-up their infrastructure and organizations to be more agile, will not grow. Or worse, they will be overtaken by competitors who are able to do this.

Now back to the Interwoven GearUp summit. Guy Kawasaki was a keynote speaker, tackling The Art of Agile Development. Guy is now a venture capitalist, but spent several years at Apple Computer in the late ‘90’s as their software evangelist, trying to get more coders to produce products for the Macintosh operating system. I first met Guy in 1996 in Chicago. He was on one of his road shows for Apple and spoke at the Chicago Public Library. He was engaging, funny and smart, and it appears that some 12 years later, none of that has changed. Guy knows the marketing speak, but he exposes the long held marketing doublespeak for what it is, and that rings true to IT. This is an important clue to getting the two teams on the same page.

You have to see Guy in person to really appreciate what he is saying. My notes can’t do that, so I won’t even try. I don’t have the slide deck presented at the summit, but this one is very close. Catch him live if you can. If you can’t visit Guy’s blog is here.

More to come.

Science fiction? Is it even possible? It is possible, and the technology is available now. Welcome to Part III in my weblog series from the Forrester Marketing Forum 2008 (Los Angeles, April 7-9). The Forum’s theme was customer engagement. In this installment I make an attempt to summarize and connect four separate presentations (two breakouts and two keynotes), that starts to show marketers how to create more engaging online experiences by making them more pleasurable and deisrable.

At the heart of this task is a new type of practice called NeuroMarketing. It’s in very early days, having been largely confined to labs using expensive equipment that was uncomfortable for the subjects. As with any technology, it’s getting smaller and cheaper. There is only so far marketers can go with our current practices. In my view it’s critical to employ new tools that can measure human response and desire. Let’s get started.

First - The Four Pleasures Framework by Patrick Jordan. Mr. Jordan is a design, marketing and brand strategist and holds a PhD in psychology. He has worked with major brands to create campaigns and products using his pleasures framework.

The objective is to help people feel good about your product, your brand/company and about themselves. The four pleasures are:

1. Physio – Physiological, the body and its senses
2. Psycho – Psychological, the mind, emotions, cognition and interests
3. Socio – Relationships, social connections in the abstract and concrete
4. Ideo – Ideological, the values, taste and morals

During his talk Mr. Jordan cited real-life examples for each of the pleasures. To illustrate physio, he spoke about how the car maker Fiat has an entire lab and team devoted to only three parts of a car. The steering wheel, gear shift and inside door handles. Through research and observation, Fiat discovered that these were the first three things a customer actually touched when in a car showroom. The salesman would usually open the door, the customer would step in, put her hands on the wheel, then on the gear shift. When she wanted to exit she would have to touch the door handle. If the designers could elevate the sensory experience of these physical parts to one of pleasure, product consideratin is off to a flying start.

He provided examples for each pleasure, but I won’t go into them here. For those explorers that want to give it a try, he offered this brief summary.

• Create robust personas
• Conduct indepth ethnographic research
• Immerse yourself in your customers
• Look at what’s going on in the media

Second - Amplifying Engagement: Measuring Customer’s Emotional Reaction to an Experience, was given by Jeremi Karnell, President, One-to-One Interactive. His company(s) are working in the NeuroMarketing space, and he defines it this way.

NeuroMarketing is a new field of marketing that studies consumers sensorimotor, cognitive, and affective response to marketing stimuli.

He discussed what he calls the mind-body nexus of engagement, consisting of perception, attention, brain function and behavior. His firm developed the Quantemo Engagement Index, a scientific approach to measuring a target audience’s emotional reactions to digital media. In short, they put sensors on subjects (simple things like bands, nothing sticks to the skin) show them web sites, ads, emails, then report on heart rate, galvanic skin response and breathing. The sensors can also detect eye tracking and body movement. Are the subjects leaning in (interested), or sitting back (bored). These measurements are graphed and presented alongside the usability testing video and reports to give designers more data points to validate or refine designs or marketing messages. Can be employed against your competitors sites as well.

Third - Creating Personas that Support Engagement was given jointly by Neil Clemmons of Critical Mass and Mike Madaio from QVC. I won’t go into defining personas or how to use them in this post. You can easily find that through a simple search. The value in this talk was how Critical Mass extended the Forrester useful, usable, desireable usability model by adding sustainable and social to the persona matrix.

I have been doing a lot of thinking along these lines lately, and this really made it clear. The more offline experiences migrate to the online world, the more tools designers and marketers will need to be effective. The rapid growth of social computing is being accelerated by technology advances. This will require new ways to think about how to create online experiences that will keep up. Expanding the persona/user-centered design paradigm is a natural next step. Mastering these techniques will be critical to engaging users in your online properties.

Fourth - Designing for Engagement by Forrester Principal Analyst, Kerry Bodine. Her talk orbited around desirability. She didn’t offer a textbook definition, but instead quoted Supreme Court Justice Potter Stewart’s opinion in Jacobellis v. Ohio (1964) as he attempted to define obscenity.

I shall not attempt further to define the kinds of material I understand to be embraced within that shorthand description; and perhaps I could never succeed in intelligibly doing so. But I know it when I see it…

I know it when I see it. Clearly desirability is a subjective call and as unique as humans. But like so many other things the mind processes, it’s real. That’s why NeuroMarketing is going to be important. It pulls the subjective, which is very difficult for marketers to deal with, into focus using something more concrete than a gut feeling.

Kerry Bodine - Photo: Steve A. Furman

Ms. Bodine showed the standard usability strata Forrester has been promoting for years, and suggested it should look more like a point to point map, increasing the role desirability should play when designing. This is a subtle change, but one that challenges designers and web architects to think about desirability along side the other dimensions at the outset, vs. something to aspire to after launch. Makes more sense.

I would love to see Forrester refine, actually update, their persona framework to address the rise in social computing and match what they have done with this change. Since 2002, I have worked with Cooper to create the personas we use today. Their persona philosophy and methodology was a natural fit with how we think about segmentation.

Ms. Bodine used a number of personal and observed examples of desirable experiences. One as mundane as ordering room service in a hotel. Her summary and advice to marketers was as follows.

• Learn to recognize desirability when you see it
• Give desirability the recognition it deserves
• Find a way to create desirable experiences

My take on what it means

Online marketers (DM guys and product managers) need to get much closer to interactive design than they are today. The pure plays are way ahead of the analog legacy firms (less baggage). Traditional direct marketers have the luxury of creating dozens (sometimes hundreds) of test cells and corresponding creatives. But they do this, for the most part, not so much through observing human responses, but by mechanical test and control (trial and error). I’m not suggesting that this is not a valid science, but it leaves out the human emotional reactions that are hallmark to the web’s interactivity.

Online testing tools available to raise interactive marketing practice to DM levels are getting better, but most firms don’t have the understanding, budget, expertise or technology infrastructure to acquire, implement and use them. They cannot support a network of sites or instances of sites or even regions on pages necessary to conduct robust DM-like testing. Don’t get me wrong, some firms are doing this well, but they are the exception. In my company we had at one time over 14,000 direct marketing test cells for one product! Nothing even close to that online.

I know it’s counterintuitive, but the online channel in most companies is fairly static because of tracking challenges, staff support, lack of a content management system and the reality of having to integrate with back end databases and systems real time. Content management suites like Interwoven, are helping, but they are big enterprise solutions. Could there be an Interwoven Lite market out there?

NeuroMarketing, is real today and could be baked into the normal project plan without extending the time line or breaking the budget. It can give the online marketer a new and powerful tool that doesn’t result in an extra large IT project.

What do you tell your CMO when asked to explain desirability? “I know it when I see it” is probably not going to do it. Use the mind. Neurons tell the truth.

In Summary

• Create personas now. If you already have them be sure they are up to date.
• Get buy in on personas from your DM marketers and Product Managers.
• Bring them into the design and development process early and keep them there through the validation cycles.
• Integrate NeuroMarketing techniques in your usability testing plan.

Read my other Forrester Marketing Forum 2008 posts here for Part I and here for Part II.